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UNCLAS SECTION 01 OF 03 ABUJA 000611 
 
C O R R E C T E D  C O P Y - PARA MARKING AND NUMBERING 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
DEPARTMENT PASS TO USAID 
BAGHDAD FOR DMCCULLOUGH 
DOE FOR GPERSON, CHAYLOCK 
LABOR FOR SHALEY 
USDA/FAS/OTP FOR MCKENZIE 
USAID/AFR FOR ATWOOD 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ELAB EPET EFIN EAGR KDEM NI
SUBJECT: NIGERIA: BI-WEEKLY POL/ECON UPDATES FOR March 15-31, 2009 
 
ABUJA 00000611  001.2 OF 003 
 
 
¶1. (U) The following is a joint Embassy Abuja, ConGen Lagos 
compilation of March 15-31 political/economic highlights, which did 
not feature in our other reporting, covering: 
 
--Economics 
--Politics 
--2011 Elections 
--Labor 
 
--Education 
--Environment and Health 
--Aviation 
--Elections 
--Corruption and Crime 
--Oil, Gas, and Power 
--Delta Incidents 
 
Economics 
--------- 
 
¶2. (U) CBN OUTLINES CONTINGENCY PLAN TO TACKLE PRESSURE ON BANKING 
SYSTEM: On March 30, the Central Bank of Nigeria (CBN) outlined a 
plan to ensure that Nigerian banks do not fail.  The CBN will tackle 
this issue through closer oversight of the banks.  As part of the 
CBN efforts to strengthen Nigerian banks, an Asset Management 
Company of Nigeria (AMCON) was established to manage banks' bad 
debt.  Nine out of twenty four banks have indicated interest with 
the asset management company. 
 
¶3. (U) ECON OUTREACH:  On March 24th, 2009 ConOff delivered a 
presentation on the principles of the U.S. economic system to 
mid-level GON officials in Lokoja, Kogi State.  ConOff volunteered 
to support Econ's ongoing collaboration with a training program 
supported by ECOLAB CONSULTS and Nigeria's Millennium Development 
Goals Foundation.  The training program's objective is to prepare 
the next generation of civil servants in fundamental principles of 
political economics and public finance.  Following the presentation, 
the Public Affairs Information Resources Center (IRC) Director 
provided a tutorial on resources offered by the U.S. Embassy. 
Nearly 40 mid-level managers and directors from several Federal 
ministries attended. 
 
Politics 
-------- 
 
¶4. (U) UNIVERSITY PROTESTS: Local papers reported that on March 23 
police clashed with students from the University of Ibadan after the 
students barricaded the entrances to the school in protest over a 
lack of electrical power and water in dormitories.  No major 
injuries were reported.  The University's Deputy Vice Chancellor for 
Administration was quoted in the papers blaming the lack of power 
and water on the "global financial meltdown."  The Vice Chancellor 
for Academics told Lagos Econoff during a November 2008 visit that 
the school runs its back up generators full time to power the campus 
and teaching hospital since grid power is unreliable.  In a 
conversation on April 1, the same Vice Chancellor admitted that the 
real reason power has been intermittent is the back up generators 
are 30 years old and need to be replaced.  He said the University 
will divert funds from other projects to buy two new generators. 
 
 
2011 Elections 
-------------- 
 
¶5. (U) Kwara State Governor Bukola Saraki told 'This Day' newspaper on 
April 8 that the PDP governors stand behind President Yar'Adua's bid 
for a second term.  He said the governors' support derives from the 
fact that the President has demonstrated "vision, sincerity and 
determination to put the country in the right direction."  Saraki 
denied that he himself had plans to run for the presidency in 2011. 
 
 
ABUJA 00000611  002.2 OF 003 
 
 
 
Labor 
----- 
 
¶6. (U) GON ESTABLISHED LABOR COMMITTEE:  Vanguard reported on March 
26 that President Yar'Adua inaugurated the Standing Committee on 
Government-Labour Relations to "improve and sustain dialogue and 
enhancement of peaceful labour relations in the country."  The 
establishment of the Committee follows growing labor union unrest 
over the last six months, culminating in several threats of strikes. 
 The minister described the move as vital for industrial growth and 
development of the economy and said that "no economy can strive 
without a conducive industrial relations climate."  Members of the 
Committee are the Secretary to the Government of the Federation 
(Chairman), the Minister of Labor and Productivity, the Minister of 
Justice/Attorney-General, the Minister of Finance, the Minister of 
Education, the Minister of Niger-Delta Affairs, the Head of the 
Civil Service of the Federation, the Director-General of the Nigeria 
Employers Consultative Association (NECA), the Chairman of the 
National Salaries, Incomes and Wages Commission, the president of 
the Nigeria Labour Congress (NLC), and the president of the Trade 
Union Congress of Nigeria (TUC).  See septel for the Minister of 
Labour's comments to the Ambassador on this subject. 
 
Education 
--------- 
 
¶7. (U) ONE LAPTOP PER CHILD: Valerie Endozien, the head of 
Schlumberger Nigeria's community relations office demonstrated to 
the Lagos Consul General an example of the type of laptop 
Schlumberger plans to distribute to children in select public 
schools in Rivers and Akwa Ibom States starting August 2009. 
Schlumberger is planning to donate 6000 of the laptops in 
collaboration with the One Laptop Per Child program 
(www.laptop.org).  Schlumberger has yet to finalize plans for 
distributing the laptops and several hurdles must be resolved before 
implementing the project including developing a computer training 
plan for teachers; determining program sustainability beyond the 
initial distribution; installing wireless access points at the 
schools and; more fundamentally, finding a source of electrical 
power to recharge the laptops since most public schools and local 
homes are without electricity.  The laptops are to be distributed to 
children between 11 and 16 years old and will remain with the 
children throughout their primary and secondary schooling.  Endozien 
believes the design of the laptop, which is brightly colored and 
resembles a child's toy, will deter theft or expropriation by 
adults. 
 
Environment and Health 
---------------------- 
 
¶8. (U) Outbreak of Meningitis hits Nigeria: The Kano State Ministry 
of Health reported on March 25 that 78 people died from meningitis 
in that state in since December. The Kano Commissioner of Health 
mentioned that 9 million naira ($61,000) worth of drugs and 
vaccination materials will be sent to the affected areas.  A 
statement by World Health Organization on March 30 reported that 
other states affected by the outbreak of meningitis were Bauchi, 
Gombe, Taraba, Yobe and Zamfara. 
 
¶9. (SBU) Infection Rates and Fatalities from Infectious Diseases 
Rising:  At a one-day sensitization workshop in Kaduna, the National 
Emergency Management Agency (NEMA) advised that the spread of 
cholera and measles in the country was having "devastating" 
consequences.  NEMA urged action via public awareness campaigns and 
timely provision of drugs.  According to NEMA, cholera, measles, 
lassa fever and other epidemics account for more deaths than those 
caused by natural disasters in Nigeria.  NEMA stressed that the rate 
of infection and fatality from these diseases, especially in the 
northern part of the country, has assumed an alarming proportions. 
High illiteracy levels, poor personal and environmental hygiene, 
 
ABUJA 00000611  003.2 OF 003 
 
 
overcrowded conditions, and the absence of community-based early 
detection and surveillance systems are identified as the main 
culprits. 
 
Corruption and Crime 
-------------------- 
 
¶10. (U) COURT INVALIDATES COMPUTER DOCUMENTS:  According to new 
Nigerian media outlet, "Next" (www.234next.com), Justice Ramat 
Mohammed, of the Federal High Court, Ikoyi, Lagos, ruled on March 26 
that a computer-generated document could not be used as evidence in 
the USD 1.6 million money laundering case involving the former 
aviation minister, Femi Fani-Kayode.  The defense counsel objected 
to the evidence because it was "computer generated."  While the 
judge agreed to the document's relevance, he asserted that there is 
no legislation under Nigeria's Evidence Act that addresses the 
admission of "computer generated" evidence and ruled it 
inadmissible.  The case was adjourned until May 5. 
 
Oil, Gas, and Power 
------------------- 
 
¶11. (SBU) SHELL PRODUCTION FALLS AGAIN: A Shell spokesman confirmed 
on March 24 that production from its onshore joint venture had 
fallen to 300,000 barrels per day, down from an estimated capacity 
of nearly 1 million barrels per day.  The spokesman attributed the 
fall in production to ongoing unrest in the Niger Delta.  In 
February, a Shell spokesman was quoted in the Wall Street Journal 
saying the company was considering further staff cuts from its 
onshore joint venture unit due to falling production.  The company 
cut 1200 staff members in 2008, but those reductions came mainly 
from routine retirements, normal attrition, and a hiring freeze. 
 
¶12. (U) Russian company to build electricity projects in Akwa Ibom 
State:  According to local papers the Russian Ambassador to Nigeria 
disclosed that a Russian company has expressed interest in the 
construction of several electricity projects in Akwa Ibom to utilize 
the abundant gas reserves in that state.  The Russians were 
reportedly carrying out feasibility studies with the intent of using 
flared gas for domestic and export purposes.  In addition, the 
Russians are considering providing boreholes, schools and hospitals. 
 
 
¶13. (U) NNPC's Contributions to Federation Account Drop: On March 
25, Group Managing Director of the Nigerian National Petroleum 
Corporation (NNPC) told the Senate Committee on Petroleum (Upstream 
Sector) that NNPC has deposited less revenue in the Federation 
Account.  He reported that the reason was the fall in international 
crude oil prices.  Note: The NNPC spokesman announced that six NNPC 
Group Executive Directors were sacked on April 7 as part of a move 
to major shake-up of the agency. 
 
Delta Incidents; No AMCITS Involved 
----------------------------------- 
 
¶14. (U) On March 15, the media reported that three Filipinos and an 
Ukranian aboard M/V Seal Tide, an oil field services boat, were 
kidnapped off Bakassi.  They were released later on the same day. 
 
¶15. (U) On March 16, Nigerian radio stations reported that militants 
allegedly from Ateke Tom's camp attacked a passenger boat carrying 
roughly 30 passengers.  Passengers were robbed and five women were 
said to have been sexually assaulted before being released. 
 
¶16. (U) The mother of a Commissioner in Rivers State was kidnapped 
on March 17 by unknown gunmen in Port Harcourt, according to 
Nigerian newspapers. 
 
SANDERS