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R 010913Z DEC 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC 4568
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHYD/AMEMBASSY YAOUNDE 0514
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
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RHMFISS/HQ USAFRICOM STUTTGART GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 03 ABUJA 002333 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
DOE FOR GPERSON, CHAYLOCK 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM ECON EPET EFIN MOPS PHUM NI
SUBJECT: NIGERIA:  BI-WEEKLY POL/ECON UPDATES FOR NOVEMBER 1-14, 
2008 
 
¶1. (U) The Following is a US Mission Nigeria compilation of November 
1-14 political/economic highlights, which did not feature in our 
other reporting, covering: 
 
--HIV/AIDS 
--HUMAN RIGHTS 
--CORRUPTION 
--FISCAL RESPONSIBILITY 
--SOUTHERN ECONOMIC NEWS 
--DELTA INCIDENTS 
--OIL AND GAS 
 
HIV/AIDS 
-------- 
 
¶2. (SBU) According to a November 13 press article in the Punch, 
Minister of State for Defense Fidelia Njeze reported that 94,000 HIV 
cases were recorded in the Ministry of Defence's 24 medical centers 
in the past 5 years.  The comments were made during the visit of a 
technical team from Walter Reed Army Institute of Research, and 
Njeze was profuse in expressing her appreciation of the USG's active 
role in fighting HIV/AIDS in the Nigerian military.  Njeze didn't 
give a specific breakdown of the data, so the numbers seem 
shockingly high given an overall active duty strength of around 
75,000 personnel; however, as Nigerian military medical centers 
perform HIV testing for large numbers of civilians who live on or 
near military bases, the actual number of infected military 
personnel is probably far lower. 
 
HUMAN RIGHTS 
------------ 
 
¶3. (U) NIGERIAN NAVY ABUSES CIVILIANS:  Two naval officers were 
arrested by the Ogun State Command Police for allegedly killing a 
policeman and severely wounding another in a scuffle at a hotel in 
Ota, Ogun State.  The incident occurred less than two weeks after a 
November 3 incident where six naval officers attached to the convoy 
of the Chief of Naval Logistics Rear Admiral Harry Arogundade beat 
and stripped the 27 year-old daughter of the National Assembly 
Sergeant-at-Arms.  The beating was caught on tape and can be found 
on CNN's iReports at: http://www.ireport.com/docs/DOC-134234. 
 
CORRUPTION 
---------- 
 
¶4. (U) RIBADU FACES SACK FOR LAWSUIT:  On November 10, This Day 
newspaper reported that former Economic and Financial Crimes 
Commission (EFCC) chairman Mallam Nuhu Ribadu is challenging his 
demotion by two ranks - from Assistant Inspector General of Police 
(AIG) to Deputy Commissioner of Police (DCP)-in a federal court. 
Police officials maintain that the Police Act does not permit a 
serving member of the police force to take legal action against 
Nigerian authorities.  Ribadu's and other lawyers have countered 
that the former EFCC chairman's right to sue is guaranteed by the 
1999 Constitution.  A senior police officer reportedly said Ribadu 
will face disciplinary action because his lawsuit was not 
pre-approved by the Inspector General of the Police (IGP) in 
accordance with Nigerian Police Force regulations. 
 
¶5. (U) EFCC FILES NEW EVIDENCE TO TRY FORMER AVIATION MINISTER: 
According to This Day newspaper the EFCC supplied fresh evidence to 
an Abuja high court on November 11 to try former Minister of 
Aviation, Dr. Babalola Borishade, and three others for alleged 
complicity in the USD 195 million Safe Tower project scam.  Others 
being tried alongside the former minister include former Managing 
Director of the Nigerian Airspace Management Agency (NAMA), Roland 
Iyayi; former aide of Borishade, T.A Dairo; and Head of Operations 
of Avsatel Communications Limited, Mr. George Eider.  The fresh 
evidence against the four was detailed in a 282-page document 
submitted to the court.  Borishade was reported to have received 
15,000 euros from Eider in the form of hotel accommodations and 
other gifts for awarding Avsatel Communications Ltd the "Safe Tower" 
contract in December 2005. 
 
FISCAL RESPONSIBILITY 
--------------------- 
 
¶6. (U) GOVERNORS, FINANCE MINISTER DISCUSS FISCAL RESPONSIBILITY 
WITH MISSION:  On November 10 Econ Couns, Acting Deputy AID Mission 
 
ABUJA 00002333  002 OF 003 
 
 
Director, AID Officer and head of USAID REFORMS project attended a 
meeting on state-level responsibility and procurement with Governors 
of Benue, Akwa Ibom, Sokoto, Kwara, Bauchi and Ekiti States chaired 
by Minister of Finance Usman.  The Minister, governors and donor 
representatives agreed to set up a joint working group to harmonize 
and facilitate adoption and implementation of related legislation 
across the 36 states.  Both the Minister and some of the governors 
emphasized the need for effective law and administration, while 
avoiding delays in executing budgets, the latter a problem at the 
federal level following adoption of the national fiscal 
responsibility law.  The senior Nigerian officials also emphasized 
the importance of peer review and technical assistance from the 
donor community to move forward fiscal responsibility and effective 
procurement at all levels of government.  Dr. Usman reported to the 
donor representatives that he was chairing a Presidential Committee 
to explore establishing a sovereign wealth fund, coordinating 
consideration of such a fund among the federal, state and local 
levels of government. 
 
SOUTHERN ECONOMIC 
----------------- 
 
¶7. (U) FLOATING HOTEL OPENS IN LAGOS:  The long awaited yacht that 
will serve as the Lagos Sunborn Yacht Hotel docked at the Lagos 
Marina on November 8.  The 5,000-ton vessel is a floating hotel with 
105 luxury suites, bars, restaurants and a conference center.  The 
hotel, acquired by the current Lagos State Government for USD 31 
million, will be under private management when operational.  A park 
and walkway along the marina waterfront facilitates pedestrian 
access to the ship. 
 
Delta Incidents; No Americans Involved 
---------------------------------------- 
 
¶8. (U) PORT HARCOURT ATTACKS: According to press reports, on 
November 3 a Lebanese employee of a construction company was 
kidnapped in Port Harcourt.  A MEND spokesman denied responsibility 
but offered to mediate.  In a separate incident the same day a 
Nigerian banker was kidnapped.  No information was given about 
ransom payments in either case, but both hostages were released on 
November 6. 
 
¶9. (U) RIVERS STATE ATTACKS: On November 8 the Nigerian press 
reported that gunmen in eight boats had attacked the Chevron 
facilities at RobertKiri, but were driven off by the Joint Task 
Force (JTF) soldiers.  The JTF claimed to have killed 12 of the 
attackers for the loss of one of their own men. 
 
¶10. (U) SOME HOSTAGES RELEASED:  On November 9 MEND announced the 
release of three Nigerian and one Ukrainian seamen held since 
September 9, when their oil supply vessel "Blue Ocean" was seized. 
Two British seamen of the international crew of 27 originally taken 
hostage are still being held.  MEND says the British hostages will 
be held until the British government ends military assistance to the 
Nigerian government and Henry Okah, a militant leader now in 
Nigerian government custody, is released. 
 
¶11. (U) OIL THEFT TANKER SEIZED: The Nigerian press reported that on 
November 14, the Nigerian Navy seized a "foreign vessel" manned by 
Filipinos and arrested the crew for illegal bunkering.  There were 
no other details about under which country the vessel was flagged. 
 
 
OIL AND GAS 
----------- 
 
¶12. (SBU) WELL REOPENINGS DOWN: On November 13 an executive with an 
oilfield service firm told Energyoff that international oil 
companies are slowing work to reopen shut-in wells in oilfields in 
Niger Delta swamp and near offshore because of falling oil prices. 
The executive said that requests by international oil companies to 
rent his equipment for reopening work have all but stopped.  In 
comparison, six months ago he fielded ten orders a week for his 
equipment.  His equipment remains fully booked for 2009, with 
international oil companies using it for maintenance of existing 
operational fields and local oil companies reopening small, 
individual wells the major companies have abandoned.  (Note: 
International oil companies rent this equipment to support crews 
reopening dozens of wells in an oilfield; in contrast small local 
 
ABUJA 00002333  003 OF 003 
 
 
oil companies usually reopen only one or two wells then keep the 
equipment to use during initial production runs until permanent 
equipment can be installed.  End Note.) 
 
¶13. (SBU) TOTAL TESTING ENHANCED OIL RECOVERY:  On November 13, the 
same executive said Total is using his equipment in Cameroon to test 
a new process for installing enhanced oil recovery equipment in 
aging oilfields.  If successful, Total plans to use that process in 
its oilfields near Port Harcourt, Rivers State.  Total is testing 
the process in neighboring Cameroon where operating costs are lower 
and security is better than in Nigeria.  According to the executive, 
the enhanced oil recovery technique may lead to increased gas 
flaring as Total has no plans to re-inject or otherwise gather the 
associated natural gas resulting from increased production. 
 
¶14. (SBU) KADUNA REFINERY MAINTENANCE BEGINS:  On November 10, local 
papers reported that the Kaduna refinery will undergo a USD 2.9 
billion turn around maintenance program from November 15 to mid 
January 2009.  Kaduna had been one of Nigeria's two operating 
refineries, but it was forced offline in mid-October after the 
feedstock pipeline supplying crude oil from Warri was vandalized. 
The Warri refinery remains partially operational.  The GON may be 
laying on stocks of imported refined products in anticipation of the 
holiday season when many Nigerians travel from cities to their home 
villages; local papers report that the wait times for tankers 
offloading gasoline at the Apapa import terminal in Lagos have 
increased in recent days.  (Comment:  Late last year, the Yar'Adua 
administration pushed the state oil company to reopen at least one 
refinery, even though scheduled maintenance had not been done. 
Previous attempts over the past few years to perform critical turn 
around maintenance at Nigerian refineries have failed in the face of 
massive corruption.  The downstream units of international oil 
companies have shied away from bidding on the contracts because of 
the blatant demands for kickbacks from refinery officials.  The 
result is refineries operating at reduced capacity and subject to 
intermittent outages.  End Comment.) 
 
SANDERS