VZCZCXRO3890
PP RUEHMA RUEHPA
DE RUEHUJA #0476/01 0781404
ZNR UUUUU ZZH
P 191404Z MAR 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 5544
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 0993
RUEHGB/AMEMBASSY BAGHDAD 0123
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 000476 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EEB/IFD/OIA AND AF/WA 
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/OCRA FOR MCKINNEL, SIMMERING 
 
E.O. 12958: N/A 
TAGS: ETRD EINV KIPR ECON EAID EAGR PGOV NI
SUBJECT: AMBASSADOR DISCUSSES TIFA, BIT WITH ECONOMIC ADVISOR 
 
REF: ABUJA 231 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG 
 
¶1. (SBU) SUMMARY.  The Ambassador met with President Yar'Adua's 
Chief Economic Advisor (CEA) Dr. Tanimu Yakubu  on March 12 to 
discuss upcoming March 30-31 Trade and Investment Framework 
Agreement (TIFA) Council Meeting in Washington, GON interest in a 
Bilateral Investment Treaty (BIT) and areas of cooperation under our 
bilateral Framework for Partnership.  The CEA promised to let the 
Ambassador know whether he would be able to personally attend the 
TIFA Council.  Ambassador thanked Yakubu for providing GON starting 
position for discussion for a BIT, but stressed that their draft was 
not something the USG could respond to as it was quite different 
from the U.S. Model BIT.  She noted that the 2004 BIT text was our 
model and that in the upcoming TIFA talks the USG and GON can have 
exploratory discussions on how to move forward towards a BIT.  She 
briefed Yakubu on efforts the USG was making to assist Nigerians in 
exporting to the U.S. under the African Growth and Opportunity Act 
(AGOA) and encouraged the CEA to urge GON export promotion agencies 
to coordinate closely among themselves and with USG counterparts. 
Yakubu said that the GON was putting a renewed emphasis on the 
agriculture value chain, AGOA and revival of the textiles industry. 
Ambassador and CEA agreed that GON and Mission teams working on AGOA 
would meet in advance of the TIFA Council.  END SUMMARY. 
. 
TIFA Council Meeting 
-------------------- 
. 
¶2. (SBU) Ambassador met with CEA Tanimu Yakubu at the Presidential 
Villa on March 12 accompanied by the Economic Counselor.  Yakubu was 
joined by Waziri H. Ahmadu, Food Security and America's Officer in 
the office of the CEA.  The Ambassador stressed the importance the 
U.S. places on the annual TIFA Council Meeting as a venue to 
exchange information and views towards strengthening economic 
relations.  She urged the CEA to attend personally if at all 
possible, to help ensure that concrete progress can be achieved at 
the March 30-31 Council Meeting.  Yakubu stated that he would review 
his calendar and let the Ambassador know shortly whether he can 
attend. 
. 
Bilateral Investment Treaty 
--------------------------- 
. 
¶3. (SBU) The Ambassador thanked the CEA for forwarding GON draft BIT 
text recently (copies sent earlier to EEB and USTR).  She noted that 
BIT's are negotiated treaties and it can often take some time to 
reach agreement between the parties.  She also emphasized that in 
any negotiation the U.S. side would take the U.S. 2004 Model BIT as 
the starting point and look to ascertain GON views on its provisions 
- particularly since key provisions in the Model BIT were absent 
from the GON text.  At the same time, the GON text could help 
elucidate where the GON might be willing to strengthen protections 
for investors.  Washington colleagues preparing for the TIFA Council 
had indicated that the two sides could exchange views on core 
principles each saw as appropriate to a BIT in the TIFA Council 
Plenary.  (NOTE:  Yakubu and Ahmadu stated the GON hoped that a BIT 
could be announced in Abuja in April or May; the Ambassador 
clarified that such a timeframe was unrealistic but that the TIFA 
Council Meeting could be the start of the dialogue and exploratory 
discussion.  END NOTE). 
. 
Joint Efforts on AGOA 
--------------------- 
. 
¶4. (SBU) Ambassador briefed Yakubu on the many efforts the USG was 
making to assist Nigerian producers and exporters to take advantage 
of AGOA, including plans for a new AGOA resource center in Lagos and 
an agriculture-focused workshop in June.  She underscored that the 
TIFA Council Meeting provided an ideal opportunity for both sides to 
review efforts and agree on mutual areas of focus, including those 
products where Nigeria potentially could have comparative advantage. 
 Yakubu said that the GON was looking to revive the textiles sector; 
Ambassador advised that Nigeria seek niche markets in the U.S. not 
already dominated by other African exporters which had moved earlier 
to take advantage of AGOA.  Ambassador noted that Nigeria had an 
uptick in non-oil exports in 2008.  Yakubu said that the GON was 
looking again at the entire agriculture value chain and presented 
the Ambassador a detailed report drafted by the Ministry of 
 
ABUJA 00000476  002 OF 002 
 
 
Agriculture.  Ambassador praised the renewed GON emphasis on 
Ag-related products and commented that the USAID Global Food 
Security Response Program complemented GON initiatives in 
agriculture and agricultural exports.  Yakubu reported that he had 
organized an inter-ministerial group on AGOA, which he would arrange 
to meet with Mission representatives before the TIFA Council. 
 
Framework for Partnership 
------------------------- 
. 
¶5. (SBU) The Ambassador then reported to Yakubu on efforts by joint 
U.S. Mission-GON working groups under the Framework for Partnership 
since their last meeting.  She mentioned growing engagement on 
energy issues and agriculture.  Yakubu noted ongoing GON interest in 
improving Nigeria's image and stated that the constructive mutual 
efforts under the Framework were increasingly appreciated.  In that 
context he cited law enforcement and anti-corruption as 
opportunities. 
. 
Comment 
------- 
. 
¶6. (SBU) While we are still waiting to hear whether CEA Yakubu will 
personally attend the TIFA Council, we have received written 
confirmation from the Ministry of Commerce and Industry that 
Minister Udenwa will lead the delegation.  It is unfortunate that 
after many requests to respond to the U.S. Model Text the GON has 
produced a completely separate text which diverges significantly 
from ours.  Nonetheless, the GON text makes it somewhat easier to 
get much-needed doing business/investment climate issues out on the 
table at the TIFA.  The U.S. and Nigeria do have growing engagement 
on agriculture and AGOA and the latter will certainly be an area of 
strong mutual interest at the March 30-31 TIFA Council in 
Washington. 
 
¶7. (U) This message was coordinated with ConGen Lagos. 
 
SANDERS