VZCZCXRO1251
PP RUEHMA RUEHPA
DE RUEHUJA #0122/01 0211029
ZNR UUUUU ZZH
P 211029Z JAN 09 ZDK
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 5080
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 0687
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 000122 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR AGAMA 
TREASURY FOR PETERS, IERONIMO AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS 
AND 3130/USFC/OIO/ANESA/DHARRIS 
USDA/FAS/OTP FOR MCKENZIE 
DEPARTMENT PASS TO USAID/AFR FOR ATWOOD 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV ENRG EAGR PGOV NI
SUBJECT: NIGERIA: YAR'ADUA'S NEW ECONOMIC TEAM 
 
REF: A. ABUJA 101 
 ¶B. ABUJA 79 
 
¶1. (SBU) Summary. On January 13, 2009 President Yar'Adua created a 
Presidential Steering Committee (PSC), which will coordinate the 
administrations economic strategy.  It was announced that one of the 
purposes of the PSC is to assess the impact of the global financial 
crisis on Nigeria and recommend appropriate policy responses to 
stimulate the economy.  The PSC is chaired by the President and its 
members include governors, cabinet ministers and respected members 
of the organized private sector.  At the same time, a new National 
Economic Management Team (EMT) was formed, and is headed by the 
Minister of Finance Mukhtar.  President Yar'Adua had pledged during 
his campaign to continue the economic reforms of former President 
Obasanjo and it was expected that a new EMT would be formed.  Nearly 
21 months later, the President has finally put together an EMT.  The 
next step is for the EMT, led by the Minister of Finance, to develop 
an economic reform plan of action that can be approved by the PSC 
and implemented within the remaining two year term of the President. 
End Summary. 
 
¶2. (SBU) On January 13, President Yar'Adua appointed members to the 
Presidential Steering Committee (PSC).  The PSC will be chaired by 
President Yar'Adua.  Other members include: Governors Babatunde 
Fashola of Lagos State; Isa Yuguda of Bauchi State; Adams Oshiomole 
of Edo State; and Bukola Saraki of Kwara State; Minister of Finance 
Mansur Mukhtar; Minister of National Planning Shamsudeen Usman; 
Minister of Petroleum Rilwan Lukman; the Chief Economic Adviser to 
the President Tanimu Yakubu Kurfi; the Governor of the Central Bank 
Charles Soludo;  the President of the National Economic Summit Group 
Sam Ohuabunwa; leading economist Bismark Rewane; Tony Elumelu 
representing the banking sector; and Alhaji Aliko Dangote 
representing large industrial firms. (Comment: In late August 2008, 
a Presidential Advisory Team was formed on the Nigerian Capital 
Market to formulate and implement medium to long term measures to 
stop the stock market decline.  Also in September 2008, the Nigerian 
Security and Exchange Commission (SEC) commissioned a ten member 
committee of experts to review the stock market operations and craft 
policy reforms.  So far no concrete reports have come out of either 
committee, and most of the individuals serving on these two 
committees are now listed on this Presidential Steering Committee. 
End Comment.) 
 
¶3. (U) The main purposes of the PSC are to: 
-- Assess the impact of the global economic crisis on Nigeria with 
focus on the annual budget, financial and commodity markets. 
-- Recommend appropriate macro-economic policy responses that can 
further stimulate the economy. 
-- Identify more practical measures aimed at boosting the confidence 
of investors and increasing production in the real sector; 
-- Examine other related issues such as unemployment, poverty 
alleviation, food availability and ensure a sustainable debt 
position. 
-- Make recommendations on any other issues or actions that may be 
required to tackle the recession. 
. 
PSC Meets 
--------- 
. 
¶4. (U) President Yar' Adua inaugurated the PSC and presided over its 
first meeting on January 15.  Following the meeting Governor Soludo 
told the media that the PSC discussed the petroleum subsidy, recent 
volatility in the naira exchange rate, credit to the economy to 
improve economic performance, tariffs, taxes, and investment in key 
sectors such as infrastructure and agriculture.  He said "the task 
before the team is to respond as a team at the national level in a 
proactive manner in order to mitigate any potential effects of the 
current global economic and financial crisis on the Nigerian 
economy, to advise government and make recommendations on what 
measures that needs to be taken both at the national, state, and 
local government levels." The PSC is expected to meet again on 
January 20. 
. 
Comment 
------- 
. 
¶5. (SBU) This move by the President is most likely due to public 
pressure to demonstrate economic leadership during the global 
financial crisis.  For several months, government spokespersons, 
including the CBN Governor, had downplayed the impact of the global 
financial crisis, but it appears that the GON has changed direction. 
 
ABUJA 00000122  002 OF 002 
 
 
 The proliferation of "special committees" does not necessarily 
translate into concrete and well-thought out action by the GON, 
however the combination of new ministers and increased focus on the 
economy may lead to much needed economic reforms. 
 
¶6. (U) This message was coordinated with ConGen Lagos. 
 
PIASCIK