VZCZCXRO6076
PP RUEHMA RUEHPA
DE RUEHUJA #0231/01 0400948
ZNR UUUUU ZZH
P 090948Z FEB 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 5221
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 0779
RUEHGB/AMEMBASSY BAGHDAD 0042
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 03 ABUJA 000231 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS TO USTR-AGAMA AND USAID/AFR FOR ATWOOD 
BAGHDAD FOR DUNDAS MCCULLOUGH 
TREASURY FOR PETERS, IERONIMO AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/CREED 
USDA/FAS/OTP FOR MCKENZIE 
DEPT PASS TO USAID WASHDC 
 
E.O. 12958: N/A 
TAGS: ETRD ECON KIPR EINV EAID EAGR PGOV NI
SUBJECT: NIGERIA: NEW COMMERCE MINISTER SEEKS FURTHER US INVESTMENT; 
PLANS TO ATTEND NEXT TIFA 
 
REF: A. ABUJA 88 
      ¶B. ABUJA 79 
      ¶C. 08 ABUJA 2486 
      ¶D. 08 ABUJA 2446 
      ¶E. 08 ABUJA 2360 
      ¶F. 08 ABUJA 2340 
      ¶G. 08 ABUJA 2327 
      ¶H. 08 ABUJA 2302 
      ¶I. 08 ABUJA 2223 
      ¶J. 08 ABUJA 2197 
      ¶K. 08 ABUJA 1977 
      ¶L. 08 ABUJA 1925 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG 
 
¶1.  (SBU) SUMMARY.  The Ambassador met with newly appointed Minister 
of Commerce and Industry (MCI) Chief Achike Uzomah Udenwa February 5 
to update him on the March 30-31 Trade and Investment Framework 
Agreement (TIFA) Council Meeting in Washington, the USG $25 million 
Global Food Security Response (GFSR) program administered by USAID, 
and next steps to further the U.S./Nigerian government (GON) 
economic relationship.  Minister Udenwa was eager to deepen economic 
ties to the U.S. and contended that it would be a priority area 
under his leadership.  U.S. economic ties to Nigeria have the 
potential to grow significantly in the next 12 months if the GON is 
willing to engage in a more vigorous fashion on key outstanding 
issues, such as trade policy reform, bilateral investment treaty 
(BIT), increasing Nigerian exports under the African Growth and 
Opportunity Act (AGOA), and improving agricultural productivity. 
END SUMMARY. 
. 
Framework for Partnership 
------------------------- 
. 
¶2.  (SBU) February 5, 2009 Ambassador, EconDeputy, and USAID 
EconGrowthDir (Director of Economic Growth) met with Minister of 
Commerce and Industry (MCI) Chief Achike Uzomah Udenwa.  Following 
brief comments with the press in attendance, Minister Udenwa and the 
Ambassador focused on the way forward.  Minister Udenwa 
congratulated the U.S. on the recent inauguration of President 
Obama, said that the U.S. is a "second home to many Nigerians" and 
"big brother" and that he hopes to deepen economic cooperation.  In 
addition, Nigeria looked towards U.S. leadership during this 
difficult global economic situation, which he admitted was hurting 
Nigeria as well (See septel on Ambassador's meeting with Finance 
Minister). 
 
¶3.  (SBU) The Minister added that he was aware of the Trade and 
Investment Framework Agreement (TIFA) in place since 2000 and the 
"very good" trade relationship and longstanding engagement with the 
U.S.  He shared that one of his goals is to increase U.S. foreign 
direct investment (FDI).  He expressed appreciation for the African 
Growth and Opportunity Act (AGOA) and commented that Nigeria has not 
taken enough advantage of it to increase non-oil exports.  However, 
he plans to focus on AGOA in order to assist exporters in improving 
standards and facilitating trade.  The Minister related that in 
2002, as governor of Imo State, he met with the U.S. Department of 
Agriculture Foreign Agricultural Service Attache in Lagos and with 
U.S. Trade Development Agency (USTDA) officials.  He found USTDA 
assistance on feasibility studies extremely useful and looked 
forward to MCI working with USTDA. 
 
¶4.  (SBU) The Ambassador noted the extremely strong ties that exist 
and that the ties could become even stronger in 2009 under the 
Framework for Partnership.  She explained that under the Framework 
for Partnership the U.S. and Nigeria have set up thematic working 
groups (WG) to focus on trade, investment, AGOA and intellectual 
property rights (IPR).  Within the trade WG, agriculture and food 
security and development are included.  The Ambassador noted the 
recent reduction in some tariffs, moving closer to adopting the 
Economic Community of West African States (ECOWAS) Common External 
Tariff (CET), but said more needed to be done for U.S. investors to 
really enter the Nigerian market. 
. 
Bilateral Investment Treaty 
--------------------------- 
. 
¶5.  (SBU) The Ambassador underscored that the U.S. hopes to increase 
 
ABUJA 00000231  002 OF 003 
 
 
trade and investment in Nigeria; however, a missing key component 
for U.S. investors is a bilateral investment treaty (BIT).  The 
Ambassador noted that the lack of a BIT is a key impediment to 
attracting U.S. investors.  Other issues that hinder investment are 
the GON's poor enforcement of intellectual property rights (IPR) and 
Nigeria's non-compliance with its World Trade Organization (WTO) 
obligations.   The Ambassador commented that since the December 2007 
TIFA Council Meeting in Abuja, the U.S. has several times provided 
the GON with a USG BIT template and that she spoke about it with the 
President's Chief Economic Advisor Tanimu Yakubu in December 2008. 
The Ambassador underscored that it would be useful if Nigeria would 
send a team to the next TIFA to begin serious discussions on a range 
of trade issues, including beginning exploratory talks on the BIT. 
 
 
¶6.  (SBU) Minister Udenwa replied that the GON wants U.S. businesses 
to invest in Nigeria and promised that his team would focus on U.S. 
concerns and liaise with Chief Economic Advisor Yakubu on the next 
steps on BIT discussions.  The Minister requested another copy of 
the USG BIT template (which EconDep forwarded to Assistant Trade 
Director Augustine Adigwe on February 6). 
. 
Next TIFA Council Meeting 
------------------------- 
. 
¶7.  (SBU) The Ambassador reported that the USG has proposed the next 
TIFA Council Meeting for March 30-31, 2009 in Washington, stressing 
the importance of the Minister's leadership in order to strengthen 
the trade and investment relationship.  The Minister responded that 
he would review and coordinate with others in the GON on who would 
lead the delegation and said he would try to encourage support 
within the GON for him to attend. (Note: President Yar'Adua has said 
that travel by ministers and ministries will be reviewed very 
carefully given global financial crisis.  End Note). 
. 
Global Food Security Response Program 
------------------------------------- 
. 
¶8.  (SBU) The Ambassador reported the USG is interested in focusing 
on agricultural productivity as a key engine for growth for Nigeria. 
 The USG via USAID has set aside $25 million to work with Nigeria on 
the GFSR program that will work with farmers and government 
officials on capacity building in the agricultural sector.  The 
Ambassador said the program will increase productivity and overcome 
bottlenecks across the value chain, including transport and customs 
hurdles.  The Ambassador noted that meeting sanitary and 
phytosanitary (SPS) requirements would be important for Nigeria to 
export food products to the U.S. 
 
¶9.  (SBU) The Minister responded that the Ministry of Agriculture 
has the lead but he wants MCI to play a prominent role in food 
processing and preservation, particularly with agricultural 
products, such as cotton for textile manufacturing.  In addition, 
the Minister promised cooperation on transportation and trade policy 
issues to increase agricultural productivity.  The Minister 
requested that the USG follow up with MCI staff on the GFSR 
assistance to MCI. 
. 
Way Forward 
----------- 
. 
¶10.  (SBU) The Ambassador advised that cooperation should be 
coordinated within the Framework for Partnership working groups and 
for MCI to notify the Mission of the points of contact for further 
discussions.  The Ambassador suggested more rigorous and regular 
discussions were needed and Minister Udenwa and newly appointed MCI 
Permanent Secretary Linus Awute agreed.  The Ambassador passed to 
the Minister the U.S.-Nigeria Framework for Partnership handbook; 
AID Global Food Security Response Implementation plan overview; the 
TIFA work plan; AGOA fact sheet; a summary and update of USG 
engagement with the GON in 2008 and 2009; a letter from Assistant 
U.S. Trade Representative for Africa Florizelle Liser to Minister 
Udenwa inviting him to the March 30-31 TIFA Council Meeting; a 
letter from U.S. Department of Commerce Deputy Assistant Secretary 
for Africa Holly Vineyard to Minister Udenwa agreeing to work with 
MCI on consumer protection and counterfeit products.  (NOTE: On 
September 1, 2008 former MCI Minister Charles Ugwuh sent a letter to 
the Ambassador requesting assistance on strengthening Nigeria's 
 
ABUJA 00000231  003 OF 003 
 
 
consumer protection laws and regulations.  The letter from DAS 
Vineyard is in response to this request.  END NOTE.) 
 
¶11.  (SBU) COMMENT:  Minister Udenwa has a positive image of U.S. 
and also on assistance in trade and investment from his time as the 
governor of Imo State.  He is eager to work with the USG and is 
getting up to speed on the details of the substantial assistance the 
USG provides to his Ministry.  USAID and Econ Section had several 
productive meetings with MCI staff in January and February in 
preparation for the March TIFA and GFSR program for Nigeria and 
expect continued open and good communications under the Minister's 
direction.  USAID and the Embassy will follow up with new regional 
USDA representative in Dakar to arrange capacity building in Nigeria 
using the USAID funded interagency agreement on SPS under the 
African Global Competitiveness Initiative.  Post requests that this 
be conveyed to USDA Washington.  The Ambassador will continue to 
advocate that the Minister play a leadership role in the TIFA 
Council Meeting and BIT discussions and be a partner with us to 
further reduce GON trade barriers and become more WTO compliant. 
END COMMENT. 
 
SANDERS