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UNCLAS SECTION 01 OF 03 LAGOS 000002 
 
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E.O. 12958: N/A 
TAGS: PGOV KDEM ECON EPET ETRD KJUS KCOR NI
SUBJECT: NIGERIA: BI-WEEKLY POL/ECON UPDATE FOR DECEMBER 
15-31 
 
 ¶1. (u) The following is a joint Embassy Abuja, ConGen Lagos 
compilation of December 15-31 political/economic highlights, 
which did not feature in other reporting, covering: 
 
-- Delta Security Incidents 
-- Political News 
-- Oil and Gas 
-- Other Economic News 
 
Delta Security Incidents; No Americans Involved 
--------------------------------------------- -- 
 
¶2. (U) Construction firm Julius Berger refuses to continue 
work in Delta: In a statement before the House of 
Representatives, Committee on the Niger Delta, on December 
16, the German construction firm Julius Berger stated they 
would not resume work on the East-West highway linking Rivers 
and Bayelsa States in the heart of the Niger Delta region. 
The company sited "incessant threats" to its workers, 
kidnappings of employees and the killing of Nigerian soldiers 
protecting them. According to the General Manager of Julius 
Berger in Nigeria, David Lubase, the firm has spent an 
average of 30 million Naira (USD 230,000) monthly on security 
costs alone. Lubase said the company will not return to work 
on the project until the security situation has improved 
significantly. 
 
¶3. (U) Oil fire in Delta State: On the night of December 
16-17, residents fled their homes in Effurun and parts of 
Okpe Local Government Areas of Delta State because of a 
raging fire on a pipeline operated by the Pipelines and 
Product Marketing Company (PPMC), which reportedly broke out 
at about midnight on December 16. Although the cause of the 
fire was not revealed, media reports said the officials of 
the Nigerian National Petroleum Corporation (NNPC) believed 
sabotage was behind the fire. The fire consumed acres of 
farmland but claimed no lives. 
 
¶4. (U) Three hostages released: Three hostages taken from the 
oil services vessel "Oceanic Orion" were released on December 
17 according to press reports. Both expatriates, a Mexican 
and a Russian, were released as well as one of the seven 
Nigerian hostages. The remaining six Nigerians are still 
being held. 
 
¶5. (U) Armed attacks on two oil services vessels: On December 
19, two oil services vessels, the "Falcon Crest" and the 
"Falcon Wings" were attacked by armed men in speed boats, 
killing the Filipino captain of one of the vessels according 
to press reports. The vessels were off the coast of Akwa Ibom 
state, near facilities operated by Addax Petroleum of Canada. 
Security sources of the Consulate confirmed the press reports. 
 
¶6. (U) Oil Spill in Bayelsa State: On December 20 a security 
services firm reported that a spill had occurred at a 
pipeline oprated by Shell Petroleum Development Corporation 
(SPDC) at Ikarama community in Bayelsa state and was 
devastating farmlands, creeks and aquatic life. The oil spill 
reportedly occurred at the same spot of a previous spill 
along the Ughelli/Rumuekpe pipeline. The date on which the 
spill started was not reported. 
 
¶7. (U) Two expatriates (no Americans) kidnapped in Akwa Ibom: 
According to media reports, on December 20, armed men in 
gunboats attacked a housing compound and kidnapped two 
Russian citizens working for an aluminum company in the port 
town of Ikot Abasi in Akwa Ibom state. 
 
¶8. (U) Armed attack on AGIP flow station: On December 26, 
armed men attacked the AGIP flow station in Southern Ijaw, 
Bayelsa State, according to press reports. The media claimed 
that the Movement for the Emancipation of the Niger Delta 
(MEND) was behind the attack that was allegedly led by 
"Commander Africa," however, MEND spokesmen Jomo Gbomo denied 
MEND's involvement. Although the JTF reported only one 
 
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soldier and two militants killed, civil society contacts of 
ConGen Lagos said they had reliable reports from the hospital 
treating the casualties that six soldiers had been killed. 
 
¶9. (U) Militant leader captured: Soboma Jakiri, also known as 
Soboma Jackrich and Ebri Papa, leader of the "Peoples 
Liberation Force" (PLF) an affiliate of MEND, was reported 
arrested by forces of the Joint Military Task Force (JTF) on 
December 28 in Rivers State. The arrest took place during a 
visit to the palace of the traditional ruler (Amanyanabo of 
Kalabari). MEND spokesman Jomo Gbomo condemned what he 
described as "the betrayal of trust" in arresting a militant 
who was responding to an invitation for a peace parley 
brokered by the elders of Rivers State. The JTF spokesman 
denied that any such "peace parlay" was in progress. 
 
Other Political News 
-------------------- 
 
¶10. (U) CEHRD calls on activists to resign in protest: The 
Director of the Center for Environment, Human Rights and 
Development (CEHRD), Patrick Naagbanton, who was recently the 
recipient of recognition from Amnesty International for his 
work in the Niger Delta, has called upon all civil society 
activists who are members of the Police Service Committee 
(PSC) to resign or quit the PSC in protest over the illegal 
dismissal of former Economic and Financial Crimes Commission 
Chairman Nuhu Ribadu. 
 
¶11. (U) Peaceful Rally Prevented by Police: On December 26, 
Nigerian police prevented a peaceful rally called by Dr. 
Leonard Shilgba of the American University of Nigeria, Yola. 
According to the organizers, the purpose of the rally was to 
educate Nigerians about their condition and motivate them to 
take a more active role in agitating for political reform. 
The specific points on the agenda included: rallying the 
spirit of Nigerians "devoid of tribal, ethnic and religious 
colorations" to seek "improvement of their estate," as well 
as budget transparency, 50 percent revenue to areas of 
derivation to oil-producing areas, and a revision of 
citizenship laws. According to press reports, the State 
Security Service prevented the rally from taking place as 
planned in Gboko, Benue State with the justification that 
"the government does not feel comfortable with the rally." 
 
Oil and Gas 
----------- 
 
¶12. (SBU) Oil firms reluctant to Operate in Ogoniland: Victor 
Agbe-Davies, the president of the Nigerian Association of 
Petroleum Explorationists told EnergyOff on December 17 that 
local oil companies are reluctant to take over operatorship 
of oil fields in Ogoniland because of the fractured nature of 
Ogoni politics. Agbe-Davies, who also heads exploration for 
Emerald Energy, said oil companies do not want to deal with 
multiple Ogoni factions, fearing an endless series of demands 
for payoffs, contracts, and "community investment" projects. 
In September, President Yar'Adua announced the GON had 
removed Shell as the operator of the Ogoniland oil fields in 
Rivers State. The fields have been shut-in due to community 
unrest since the early 1990's. Agbe-Davies thought the state 
government will need to hash out a deal with the various 
Ogoni groups before an oil company would consider starting 
operations. 
 
¶13. (U) Tanker truck drivers strike: A tanker truck drivers 
strike in Lagos began on December 17, which led to fuel 
shortages and long lines in local gas stations. A spokesman 
for NUPENG, an oil and gas workers labor union that covers 
the truck drivers, said workers were demanding better road 
conditions, special road lanes for trucks, an end to 
harassment by policemen, and a lifting on the ban on daylight 
movement by tanker trucks in Lagos State. The strike ended 
two days later (December 19) after the union met with 
officials at the Lagos State Ministry of Transportation and 
 
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both parties agreed to settle their differences amicably. 
 
Other Economic News 
------------------- 
 
¶14. (U) Poisoned medicine kills children: It was reported in 
the press on December 18 that more than 30 Nigerian children 
died after taking baby teething medicine that contained toxic 
chemical diethylene glycol. Nigeria's Agency for Food and 
Drug Administration and Control (NAFDAC) tested the medicine 
and found that it contained 90 milliliters (ml) of toxic 
chemical per 100ml. The medicine was manufactured in Nigeria 
and factory's managing directors and others have been charged 
with negligence. 
 
¶15. (U) Senate Passes 2009 Budget: On December 17, 2009, 
Senate passed the 2009 budget, two weeks after President 
Yar'Adua presented it to the National Assembly. The Senate 
did not pass the budget the President proposed. They 
increased the total budget to 3,049 trillion Naira (USD 22.3 
billion), from the President's 2.87 trillion Naira (USD 21 
billion). The House of Representatives still needs to pass 
the 2009 budget. When that will happen is uncertain. 
 
¶16. (U) Inflation rose to 14.8 percent in November 2008: 
Nigeria's inflation rose to 14.8 percent in November from 
14.7 percent in October 2008. The Nigerian Bureau of 
Statistics attributed the slight rise to the increase in the 
prices of staple foods such as maize, yam, cord, meat, fruits 
and vegetables. 
 
¶17. (U) Nigeria gets draft law for nuclear power: The Nigeria 
Atomic Energy Agency (NAEA) on Friday December 19 received a 
draft legal framework which would guide the development and 
implementation of the nation's nuclear power program. The 
draft document was put together by a team of lawyers and 
relevant agencies in the energy and environment sectors as 
well as security agencies, and according to the Director 
General of NAEC, is critical in ensuring the success of 
Nigeria's nuclear power program. Nigeria has recently 
announced its intention to use nuclear power to alleviate its 
severe electricity shortage. This draft law is one step in 
that direction. 
 
 
HUDSON