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UNCLAS SECTION 01 OF 06 ABUJA 002212 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
DOE FOR GPERSON, CHAYLOCK 
LABOR FOR SHALEY 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ELAB EPET EFIN EAGR KDEM NI
SUBJECT: NIGERIA:  BI-WEEKLY POL/ECON UPDATES FOR OCTOBER 16-31, 
2008 
 
¶1. (U) The Following is a joint Embassy Abuja, ConGen Lagos 
compilation of October 16-31 political/economic highlights, which 
did not feature in our other reporting, covering: 
 
--Fishing and Agriculture 
--Environment 
--Health 
--Financial News 
--Education 
--Labor 
--Corruption 
--Political/International News 
--Delta Security Incidents 
--Oil and Gas 
 
FISHING AND AGRICULTURE 
----------------------- 
 
¶2. (SBU) PLATEAU STATE LOOKING FOR PPP: On October 13 Plateau State 
government officials told EconOff the state plans to partner with 
the private sector in the fish sector.  The state government-owned 
Payam Fish Farm has 42 ponds on 180 acres of land, 103 of which are 
under water.  Out of 42 ponds, only five are operational and three 
stocked with fish.  Despite a state appropriation of 50 million 
naira ($424,000) for Payam Fish Farm, the fishery has yet to receive 
funds. 
 
¶3. (U) NIGERIA'S FISHING RESOURCES UNDERUTILIZED: On October 22 the 
media reported that of 60,000 hectares of land usable for fish 
farming, only 10% is utilized.  Experts contend that the major 
reasons are lack of well trained fisheries experts, low levels of 
fish fingerlings production, non-availability of funds and lack of 
interest by private entrepreneurs.  Nigeria imports 1.5 million tons 
of frozen fish annually, with domestic supply of only 500,000 tons 
annually. 
 
¶4. (U) GOVERNMENT OWNED PRODUCE STORAGE TO BE AVAILABLE FOR FARMERS: 
On October 20, President Yar'Adua's Chief Economic Advisor Tanimu 
Yakubu reported that the GON has a series of initiatives to boost 
production and increase the percentage of available land for 
agriculture.   The GON plans to reintroduce commodity boards and 
other licensed buying agents toward boosting production and 
marketing of farm produce.  A warehouse receipt system would soon be 
in place to increase farmers' liquidity during the off-season 
without forcing them to sell their produce when the supply is high 
and price low. 
 
ENVIRONMENT 
----------- 
 
¶5. (U) AWARENESS AGAINST DESERT ENCROACHMENT: On October 21, Public 
Affairs Counselor and Environment, Science, Technology and Health 
Officer (ESTHOff) attended a reception to honor members of the 
Nigerian third expedition across the Sahara Desert undertaken to 
raise awareness against desert encroachment and global warming.  The 
event, organized by the Ministries of Foreign Affairs and the 
Environment and private partners, including Exxon Mobil, involved a 
photo exhibition and a brief clip from an upcoming documentary on 
the expedition. At the occasion, Dr. Newton Jibunoh, captain of the 
expedition and a recent participant of the U.S. Voluntary Visitor 
program, characterized desertification and global warming as real 
threats to Nigeria, the surrounding countries and the world and 
encouraged collective action by all.  He thanked the USG for its 
support and urged young Nigerians to join the fight. 
 
¶6. (U) GON DECLARES SOUTH EAST NIGERIA AN ECOLOGICAL DISASTER ZONE: 
According to several press reports, the GON has declared the 
southeastern part of the country an ecological disaster zone because 
of gully erosion and landslides.  Following an October 29 meeting, 
Vice President Goodluck Jonathan and the governors of five affected 
states (Anbara, Ebonyi, Imo, Abia, and Enugu) agreed to set up a 
committee to improve the situation 
 
¶7. (U) AGREEMENT ON RECYCLING PLANT IN KANO STATE: On October 28 the 
Kano state government, the federal Ministry of Environment and a 
private company, Goodness Nigeria Limited, entered into agreement to 
 
ABUJA 00002212  002 OF 006 
 
 
establish a 8.6 billion naira ($73 million) garbage recycling plant 
in the state.  The company will utilize waste to provide fertilizer 
and biogas.  The agreement is part of both state and federal 
government's effort to improve the environment and enhance wealth 
creation. 
 
¶8. (U) NIGERIA RECORDS 418 OIL SPILLS IN 6 MONTHS: Minister for 
Environment, Housing and Urban Development, Halima Alao reported on 
October 28 that Nigeria recorded 418 oil spill cases in the first 
six months of 2008.  The spills are believed to be the results of 
aging oil facilities, illegal bunkering, and human error.  All 
incidents were reported to the National Oil Spill Detection and 
Recovery Agency (NOSDRA), a lead agency on oil spill management. 
 
HEALTH 
------- 
 
¶9. (U) EU ALLOCATES $19 MILLION FOR POLIO ERADICATION: On October 20 
the European Union Partnership to Reinforce Immunization Efficiency 
(PRIME) promised to allocate 2.3 billion naira ($19 million) for 
2009 polio eradiation efforts.  The funds would be used to improve 
immunization infrastructure including cold chain equipment, cold 
stores and heath facilities renovation. 
 
¶10. (U) WIFE OF EBONYI STATE GOVERNOR CALLS ON POL-ECON CHEIF: 
During a rare visit to Lagos, the wife of Ebonyi State Governor 
Martin Elechi, Mrs. Josephine Elechi, called on Pol-Econ Chief to 
tell her of the continuing success of her program to help women in 
Ebonyi State suffering from vesicovaginal fistula (VVF).  Mrs. 
Elechi said that, as a girl growing up in her village, she knew many 
women who suffered from this problem, and upon becoming First Lady, 
knew that she wanted to try to help.  She has trained local health 
care providers to recognize the problem, and to refer patients to 
the hospital in the state capable of conducting the surgical repair. 
 By disseminating information about VVF and her program to address 
the problem, she has persuaded many women who formerly were 
unwilling to admit they suffered from VVF to come forward for 
treatment.  Mrs. Elechi said she had recently attended a program, to 
which she had been invited by USAID, at which she shared her 
experiences and learned about other similar programs in Nigeria. 
 
FINANCIAL NEWS 
-------------- 
 
¶11. (U) 80 MILLION NIGERIANS HAVE NO ACCESS TO FINANCIAL SERVICES: 
As of September 2008, there are 815 micro finance banks (MFB) in the 
country, of which nine are state owned.  Most of the MFBs are 
concentrated in the southern part of the country, with 335 in the 
south-west, 168 in the south-east, 114 in the south-south, 108 in 
the north-central, 57 in the north-west, and 33 in the north-east. 
Government statistics estimate that MFBs serve less then one million 
out of 80 million Nigerians who need access to financial services. 
 
¶12. (U) FOREIGN INVESTMENT IN GOVERNMENT BONDS FALLS BY 6.9 BILLION: 
In October foreign holdings of federal government bonds dropped from 
10% to 1% - 8.5 trillion naira ($72 billion) to 950 billion naira 
($8 billion).  In response on October 29 Debt Management Office 
Director General told the press that the GON needs to "step up its 
drive for Foreign Direct Investment as opposed to foreign portfolio 
investment." 
 
¶13. (U) GON PARTNERS WITH CHINA ON ETHANOL FACTORY: On October 8 the 
Taraba State government signed an agreement with a Chinese firm, 
A-Dinota Ventures Ltd, to establish a $115 million ethanol factory 
in the state.  The factory will produce 200,000 liters of fuel 
ethanol, 100 tons of cassava flour, 50 tons of liquid CO2 and 
600,000 liters of bio fertilizers daily.  Through a Public Private 
Partnership, the state government is expected to provide land and a 
$70 million sovereign guarantee for importation of the processing 
equipment from China.  The state will assume part ownership in the 
factory. 
 
EDUCATION 
--------- 
 
¶14. (U) MISSION NIGERIA'S DEMOCRACY EDUCATION OUTREACH: On October 
 
ABUJA 00002212  003 OF 006 
 
 
31, EmbOffs traveled to Kaduna as part of Mission Nigeria's 
democracy education outreach efforts to explain the American 
political system and educate Nigerian audiences to better understand 
the 2008 U.S. Elections.  Mission Vice Consul, as part of the 
Ambassador for a day program, presented a lecture at Kaduna State 
University (KSU) on the impact of federalism on electoral politics 
in the United States, focusing on the dynamic tension that exists 
between states and the central government in four arenas of 
electoral administration: electoral districting, candidate 
selection, voter registration, ballot counting and the certification 
of election results. Approximately 150 students, administrators and 
senior faculty attended.  Following the lecture, the Vice Chancellor 
led a tour of the Kaduna State University campus, including a new 
lecture theatre, renovated library facilities, IT instructional labs 
containing over 100 new terminals, a biological sciences building, 
and a new Faculty Senate Building still under construction.  KSU was 
chartered 3 years ago and preparations are underway to celebrate the 
graduation of its first complete class of students.  The EmbOffs 
then proceeded to the Kaduna State Library Board for a donation of 
nearly 200 titles, made available through Humanitarian Assistance 
programming, for use throughout the Kaduna State Library system. 
The book donation was facilitated by the Defense Attach Office. 
 
LABOR 
----- 
 
¶15. (U) GASOLINE TANKER DRIVERS WARN OF STRIKE: Members of the 
Petrol Tanker Drivers Union announced on October 16 that they will 
embark on a nationwide strike if the federal government does not 
address drivers' poor working conditions -- including poor road 
infrastructure, which often causes fatal accidents -- and the rising 
cost of diesel, which is forcing employers to go out of business and 
is putting tanker drivers out of jobs.  The drivers threatened to 
shut down operations and discontinue transporting fuel from the 
depots to filling stations and other destinations if the government 
did not address their grievances by 29 October. The union is 
currently in discussions with the government and as of November 5, 
there has been no strike.  The drivers first voiced their grievances 
in September 2007 and have called for similar strikes on several 
subsequent occasions; however, union officials claim the GON still 
has not taken action to address their demands. 
 
CORRUPTION 
----------- 
 
¶16. (U) EFCC ASKS FOR SPECIAL COURT: The Nigerian Television 
authority (NTA) reported that Chairperson of the Economic and 
Financial Crimes Commission Farida Waziri has asked the Nigerian 
Senate to approve the establishment of special courts to prosecute 
corrupt individuals. She made the request at a hearing of the Senate 
Anti-Corruption and Financial Crimes Committee on October 22.  Mrs. 
Waziri also criticized the immunity clause which shields the 
President, Vice President, governors and their deputies from 
prosecution and accused her predecessor, Mallam Nuhu Ribadu, of 
fighting a bogus anti-corruption war which, according to her, was 
sometimes based on deceit. 
 
¶17. (U) ALLEGED FRAUD IN THE PURCHASE OF 380 PEUGEOT CARS: 
Lagos-based lawyer Festus Keyamo testified on October 29 before the 
House of Representatives Committee on Ethics and Privileges 
investigating the alleged fraud in the purchase of 380 Peugeot 407 
cars by House Members.  The alleged corruption has made headline 
news and is forcing the EFCC to make a decision on whether or not it 
will initiate an investigation. 
 
¶18. (U) PPPRA ROLE IN DISAPPEARANCE OF PETROLEUM SUPPORT FUNDS: The 
EFCC launched an investigation on October 18 into the suspended 
Executive Secretary of the Petroleum Products Pricing and Regulatory 
Agency (PPPRA) over his role in the disappearance of about USD $500 
million from the Petroleum Support Fund.  The Petroleum Support Fund 
funds subsidies to oil marketers for distribution of fuel within 
Nigeria.  At issue is the supply of gasoline to marketers without 
known retail outlets (presumably for sale on the Black Market). 
 
¶19. (U) RIVERS CHIEF OF STAFF PLEADS NOT GUILTY: Ezebunwo Nyeson 
Wike, Chief of Staff to the Governor of Rivers State, pleaded not 
 
ABUJA 00002212  004 OF 006 
 
 
guilty to seven counts of criminal breach of trust and conversion of 
public funds totaling approximately USD $45 million, in a corruption 
case being closely watched by militants in the restive region.  Wike 
was ordered to be held in EFCC custody until he met release 
conditions including $500,000 bail and the surrender of his 
international passports. The case was adjourned to October 24.  The 
Movement for the Emancipation of the Niger Delta (MEND), threatened 
on October 29 to create a "state of anarchy" unless those accused in 
the case were properly dealt with. 
 
¶20. (U) SHOTS FIRED AT RIBADU'S CAR: On October 30 and 31, 
unconfirmed press reports stated that former EFCC Chairman Nuhu 
Ribadu's car was shot at on the road from Abuja to Jos one night 
approximately two weeks earlier.  It is not known whether the 
incident was targeted at Ribadu or a case of random criminal 
activity on Nigeria's roads at night.  Ribadu, who has filed a 
request with the Abuja High Court to issue an injunction preventing 
the Police Service Commission from implementing his August demotion 
from Assistant Inspector-General of Police (AIG) to Deputy 
Commissioner of Police (DCP), a two-rank demotion, told press on 
October 29 that he is concerned for his safety. 
 
POLITICAL/INTERNATIONAL NEWS 
---------------------------- 
 
¶21. (SBU) Foreign Minister Ojo Maduekwe told Ambassador on November 
5 that GON-China relations were heating up over the upcoming visit 
in late November of the Dali Lama to attend a NGO event in Lagos. 
Maduekwe said that after refusing to deny issuance of a Nigerian 
visa to the Dali Lama as requested by the Chinese Ambassador, he 
said he received a tense and unfriendly letter from China's Foreign 
Minister over this issue.  Top Foreign Minister noted that the GON 
would not be intimidated by this statement by China and expects 
additional GON-China fall out on the issue, including the recently 
cancelled oil concession contracts with had been promised to China 
under former Nigerian President Obasanjo. 
 
¶22. (SBU)  GON PURCHASES MILITARY EQUIPMENT FROM AUSTRALIA AND 
MALAYSIA: October 29 press reports indicated that in a move designed 
to "make the Navy globally competitive and adequately police the 
Niger Delta," the GON purchased 4 17-m Manta-class inshore patrol 
craft and 2 38-m Town-class boats from Australia and Malaysia 
respectively.  Previous press reports also mentioned the future 
delivery of an unspecified number/model of Agusta helicopters, which 
can operate off of small ships.   NOTE: A private business' website 
reported the sale to be comprised of two A109 Power helicopters, 
augmenting the July 2004 sale of two others.  End Note.)  In 
addition, an unspecified number of Israeli-built SHALDAG-MK II Fast 
Patrol Craft are on order.  Long considered too severely 
under-equipped and under-gunned to effectively patrol its Exclusive 
Economic Zone and combat Niger Delta militants, the purchases will 
help the Nigerian Navy meet its security responsibilities and 
enhance its ability to protect offshore oil and gas facilities from 
militant attacks, such as the one in June 2008 against Shell's Bonga 
platform. 
 
¶23. (U) ONLINE MAGAZINE PUBLISHER RELEASED FROM DETENTION: On 
October 29, Jonathan Elendu, (not an American citizen) owner and 
publisher of the U.S. based online news magazine ElenduReports.com, 
was released on bail after nearly two weeks in detention.  State 
Security Services (SSS) arrested Elendu on October 18 upon his 
arrival from the U.S. at Nnamdi Azikiwe International Airport in 
Abuja and later transferred him into custody of the Economic & 
Financial Crimes Commission (EFCC) for further questioning. 
Nigerian law requires detainees be charged within 48 hours of arrest 
(unless a judge rules to extend the detention period); however, 
Elendu was held for 11 days and denied contact with a lawyer or his 
family.  Although the SSS released Elendu without filing any 
official charges, the GON has retained his passport and travel 
documents. 
 
¶24. (U) ANOTHER ONLINE JOURNALIST DETAINED: On October 28, the SSS 
arrested Emmanuel Emeka Asiwe, a U.S. national and editor of the 
online magazine HuhuOnline (www.huhuonline.com), upon his arrival at 
the Murtala Muhammed International Airport in Lagos.  According to 
an SSS spokesman, Asiwe was being questioned on matters of national 
 
ABUJA 00002212  005 OF 006 
 
 
security.  A consular visit was conducted on October 31 and Asiwe 
was released on bail November 4 under condition he return to SSS for 
additional questioning and not leave the country until the 
investigation is concluded.  Post will continue to monitor and 
report on the situation. 
 
¶25. (U) KANO STATE GOVERNOR TO ISLAMIZE POLITICS: On October 23 
Leadership Newspaper reported that Kano State Governor Ibrahim 
Shekarau spoke at a presentation of vehicles to the 
Hisbah(state-sponsored local religious "police" charged with 
enforcing civil aspects of Shari'a law) saying, "We can spend any 
amount on the activities of the Hisbah.  We cannot mind spending 
whatever we have in the state coffers to ensure the success of the 
Shari'a."  He added that he wanted to "Islamize politics." 
Commander General of the Hisbah guards Ibrahim Muazzam Mia Bushira 
reported that the Hisbah closed 52 beer parlors and 59 brothels; 
arrested 44 beer vendors; and arrested 1850 prostitutes.  At the end 
of the event some 36,000 bottles of confiscated beer were destroyed. 
 
 
¶26. (U) THREAT TO MEDIA AGENCY: On October 28 The Daily Trust 
newspaper reported that the Media Trust Publication's Kano office 
has petitioned the police and security agencies for assistance 
following anonymous threats the office has received for "writing 
negative things about the state government." 
 
DELTA SECURITY INCIDENTS; NO AMCITS INVOLVED 
-------------------------------------------- 
 
¶27. (SBU) NAVY VESSEL ATTACKED: An Overseas Security Advisory 
Council (OSAC) contact reported that on October 15 militants in six 
speed boats attacked Nigerian navy vessels guarding Nigeria's main 
crude oil and liquefied natural gas export terminal on Bonny Island. 
 A spokesmen for the military reported that members of the Joint 
Military Force were wounded in the attack, and claimed to have sunk 
two of the attacking speed boats with the loss of all hands. 
 
¶28. (U) TWO NIGERIAN CHILDREN KIDNAPPED: Press reported on October 
22 that two Nigerian children were kidnapped from in front of their 
school in Port Harcourt, Rivers State.  No group has claimed 
responsibility.  (Note: Family members of Nigerian oil workers and 
local politicians are often targeted for kidnapping by criminal 
gangs.  The press did not specify the employer of the childrens' 
parents.  End Note.) 
 
¶29. (U) MILITANT BOAT CAPTURED: The Nigerian military claimed to 
have killed five militants in a clash during a routine naval patrol 
on October 23.  The militants allegedly attacked the navy vessel 
from three speed boats and one of the militant boats was captured in 
the skirmish. 
 
¶30. (SBU) FISHING TRAWLERS ATTACKED: A contact with the Nigerian 
Trawler Owner's Association told Poloff on October 25 that in five 
separate incidents on October 25, three oil supply vessels and six 
fishing trawlers were attacked.  One of the oil supply vessels was 
boarded, run aground, and held for roughly six hours before being 
released.  Another supply vessel was boarded and the crew robbed. 
The third oil supply vessel eluded the attackers.  Five fishing 
trawlers were captured and the crews held for ransom, which was paid 
October 28 into a bank account with a major Nigerian bank.  The 
sixth fishing vessel was captured, run aground, and the crew robbed 
and terrorized by an entire coastal village.  A plea by the vessel's 
owner to MEND resulted in the crew being rescued and released, and 
the vessel and equipment returned. 
 
OIL AND GAS 
----------- 
 
¶31. (SBU) NIGERIA CANCELS SOME OIL CARGOES:  On October 30, Reuters 
reported that Nigeria has cancelled some oil cargoes scheduled for 
delivery in November and December citing recent cuts in its OPEC 
quota.  (Comment:  That explanation is suspect for a couple of 
reasons.  NNPC spokesman said Nigeria will cut five cargos in 
November and seven in December.  That is more cancellations than 
necessary given an average cargo of 900,000 barrels and the 113,000 
barrels per day (bpd) reduction in Nigeria's OPEC production quota. 
 
ABUJA 00002212  006 OF 006 
 
 
In any case, Nigeria is producing oil below even its new OPEC 
production quota of 2.05 million bpd; it doesn't need to cancel 
deliveries.  Econoffs met with a long-time local oil company contact 
on October 28 who reported that several of the Nigerian companies 
that off-take crude from the Nigerian National Petroleum Corporation 
(NNPC) are insolvent and reneged on their obligation to take 
delivery of NNPC crude oil.  Additionally, falling oil prices have 
meant severe losses to these crude oil lifters who, the contact 
said, paid a fixed "fee" to senior government officials for the 
right to receive Nigerian crude oil, counting on rising oil prices 
to turn a profit.  The reduced OPEC quota may have provided a 
convenient cover story to explain away these defaults.  End 
Comment.) 
 
¶32. (SBU) NIGERIA'S CURRENT DAILY OIL PRODUCTION:  On October 15, 
Foreign Minister Ojo Maduekwe told reporters that Nigeria's current 
daily oil production was 1.5 million bpd.  (Comment:  The foreign 
minister's estimate sounds low, although other Nigerian officials 
have not been quick to correct him.  The general consensus for daily 
production is 1.95 million bpd.  The fact that 1.5 million bpd is 
even plausible is an indicator of the deteriorating state of 
Nigeria's oil industry.  End Comment.) 
 
SANDERS