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Viewing cable 09LAGOS143, NIGERIA: AMBASSADOR ENGAGED LAGOS BUSINESS ELITES ON

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Reference ID Created Released Classification Origin
09LAGOS143 2009-03-20 09:32 2011-08-26 00:00 UNCLASSIFIED Consulate Lagos
VZCZCXRO5240
RR RUEHMA RUEHPA
DE RUEHOS #0143/01 0790932
ZNR UUUUU ZZH
R 200932Z MAR 09
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC 0621
INFO RUEHUJA/AMEMBASSY ABUJA 0230
RUEHOR/AMEMBASSY GABORONE 0068
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
UNCLAS SECTION 01 OF 02 LAGOS 000143 
 
SIPDIS 
 
FOR GABORONE PASS PDROUIN 
STATE PASS OPIC FOR DERB, ZHAN, MSTUCKART, JEDWARDS 
STATE PASS TDA FOR LFITTS, PMARIN 
STATE PASS USAID FOR NFREEMAN, GBERTOLIN, GWEYNAND 
STATE PASS EXIM FOR JRICHTER, KJACKSON 
DOC FOR 3317/ITA/OA/KBURRESS 
DOC FOR 3310/USFC/OIO/ANESA/DHARRIS 
DOC FOR USPTO-PAUL SALMON 
TREASURY FOR DFIELDS, AIERONIMO, RHALL, DPETERS 
 
E.O. 12958: N/A 
TAGS: EFIN EFIN EAID NI
SUBJECT: NIGERIA: AMBASSADOR ENGAGED LAGOS BUSINESS ELITES ON 
POLITICAL AND ECONOMIC CHALLENGES 
 
1. (U) Summary: As part of the U.S. Mission Nigeria's National Week 
activities, Ambassador discussed political and economic issues with 
business executives and private sector leaders at the Lagos Island 
Club on February 24, and the Lagos Business School Breakfast Club on 
March 3.  Lagos business elites challenged the Ambassador on the Buy 
American provision in the Recovery and Reinvestment Plan, and asked 
for the Mission's assistance with Nigeria's efforts to take 
advantage of AGOA and its bid for Category 1 status. Ambassador 
called on the Government of Nigeria (GON), on the economic front, to 
lower trade barriers, to diversify its economy, and to move forward 
on the establishment of U.S.-Nigeria standard trade frameworks; on 
the political front to push for more election reforms, 
anti-corruption, and fiscal transparency; and on the regional level 
to fulfill its peacekeeping role and responsibility in the region. 
Ambassador also encouraged the business elites to proactively engage 
their government in seeing these changes through.  End summary. 
 
2. (U) A part of the U.S. Mission's National Week activities, 
Ambassador delivered remarks on the global financial crisis and 
economic downturn at the Lagos Island Club's Annual Luncheon and the 
Lagos Business School's Breakfast Club.  Ambassador discussed the 
U.S. approach to the situation, the challenges confronting Nigeria, 
and the ways in which U.S. Mission Nigeria, the Government of 
Nigeria (GON), and the Nigerian private sector can collaborate to 
help Nigeria weather the crisis.  Ambassador listened and addressed 
the concerns that were front and center for the Nigerian business 
elites. 
 
Buy American Provision Raises Concern 
------------------------------------- 
 
3. (U) The Buy American provision in the Recovery and Reinvestment 
economic stimulus package generated much concerns among the business 
elite.  Ambassador received several questions about the provision's 
allegedly protectionist nature, to which she countered that the 
provision is intended for manufactured products used in public 
projects funded with money appropriated by the Act, and does not 
apply to least developed countries (LDCs) and does not exclude our 
trading partners from the procurement process.  Ambassador took this 
opportunity to promote the establishment of a U.S.-Nigeria Bilateral 
Investment Treaty (BIT) and Trade and Investment Framework Agreement 
(TIFA), and urged the GON to move forward on the thematic working 
groups created under the U.S.-Nigeria Framework for Partnership. 
 
Mission Presses for AGOA Use 
---------------------------- 
 
4. (U) The audience supported the Ambassador's call on Nigeria to 
take advantage of the African Growth and Opportunity Act (AGOA), and 
asked for the Mission's assistance.  Ambassador noted that the 
responsibility for utilizing AGOA ultimately falls on the Nigerian 
private sector, although the Mission has worked tirelessly in the 
past one year to promote AGOA.  Mission's efforts included holding 
export credit workshops and nation-wide AGOA related workshops to 
help explain the AGOA legislation and what it takes to be export 
ready for the U.S. market. 
 
Joint efforts to Spur Category 1 
-------------------------------- 
 
5. (U) Ambassador received questions on Nigeria's progress in 
attaining Category 1 status, to which she made the distinction 
between the roles and responsibilities of Nigerian regulators in 
becoming Category 1-ready and the airline industry in preparing 
themselves to fly directly to the United States.  Ambassador 
discussed the Mission's joint efforts with the Nigerian Civil 
Aviation Authority (NCAA) and other aviation parastatals in hosting 
practical seminars and workshops on aviation safety and security. 
Ambassador called on airline operators to prepare for the steps 
required to begin international air transport operations to the 
United States, including the U.S. Transportation Security 
Administration's security requirements and approval process and 
other U.S. Federal Aviation Administration's safety requirements. 
 
Nigeria Needs to Diversify Trade, Establish TIFA, BIT 
--------------------------------------------- -------- 
 
LAGOS 00000143  002 OF 002 
 
 
 
6. (U) Ambassador reflected on Nigeria's untapped potential as a 
major primary commodity producer and exporter and attributed it to 
high trade barriers and the lack of diversification in the economy. 
Ambassador noted that, despite U.S.-Nigeria robust bilateral trade 
relationship, the two trade partners do not have a bilateral 
investment treaty (BIT), a standard trade framework on which the 
U.S. Mission has been encouraging the GON to begin exploring talks. 
Ambassador called on the audience to engage and push the GON on this 
front as the establishment of a BIT will mutually benefit both 
countries. 
 
More on Election Reforms, Anti-Corruption 
----------------------------------------- 
 
7. (U) Ambassador sent a resounding message to the government and 
people of Nigeria that Nigeria must move forward on election reform, 
fiscal transparency, and anti-corruption efforts.  Ambassador said 
the Mission stands ready to assist with these efforts, but the 
Nigerian people must take the lead.  The audience heartily agreed 
with the Ambassador on these points. 
 
Nigeria Must Commit to AMISON 
----------------------------- 
 
8. (U) Ambassador also called on the GON's to fulfill its promise to 
send more troops to Somalia under Africa Union Peacekeeping Mission 
to Somalia (AMISON). Nigeria, as a regional leader, needs to remain 
steadfast on its political stance on Zimbabwe and its peacekeeping 
effort in Darfur, she said. 
 
9. (U) This cable was cleared with Embassy Abuja. 
 
Blair