VZCZCXRO4795
PP RUEHMA RUEHPA
DE RUEHUJA #0674/01 1110803
ZNR UUUUU ZZH
P 210803Z APR 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 5788
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 1161
RUEHGB/AMEMBASSY BAGHDAD 0210
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 000674 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS TO USTR-AGAMA AND USTDA-MARIN 
DEPT PASS USAID AFR/SD FOR CURTIS AND ATWOOD 
BAGHDAD FOR DUNDAS MCCULLOUGH 
TREASURY FOR PETERS, IERONIMO AND HALL 
DOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/CREED 
 
E.O. 12598: N/A 
TAGS: EINV ETRD ECON PGOV NI
SUBJECT:  NIGERIA: NIGERIAN INVESTMENT PROMOTION COMMISSION SOLICITS 
U.S INVESTMENT 
 
¶1. (SBU) Summary.  During an April 9 courtesy call, officials of the 
Nigerian Investment Promotion Commission (NIPC) informed the 
Ambassador that the organization is working towards attracting 
Foreign Direct Investment (FDI) into Nigeria, despite the global 
economic downturn.  It is currently working within the Government of 
Nigeria (GON) to introduce streamlining of business disputes, 
improving the investment climate and further trade policy reforms. 
To assist companies with disputes, NIPC supports Alternative Dispute 
Resolution (ADR) mechanisms rather than the long and tortuous 
Nigerian judicial system.  It is also in the process of reviving the 
"Doing Business" Committee established during the administration of 
former President Olusegun Obasanjo.  A One-Stop Investment Center 
(OSIC) has also been established at the NIPC to streamline 
procedures for business registration, licensing and obtaining 
necessary permits by foreign investors.  NIPC has lobbied the GON to 
remove import bans that discourage foreign direct investment (FDI). 
NIPC seeks USG assistance in capacity building to increase its 
ability to implement its programs.   The NIPC's initiatives are 
timely and useful; however progress will likely be difficult.  End 
Summary. 
 
¶2. (SBU) On April 9, the Ambassador, Economic Counselor and Econ 
Specialist notetaker met with NIPC Executive Secretary Engineer 
Mustafa Bello and his senior staff.  Bello highlighted the need for 
collaboration between the Embassy and the NIPC in attracting U.S 
investments to Nigeria.  The Ambassador reported that there was 
substantial U.S. interest in Nigeria, but the investment climate 
discourages investment.  The Ambassador noted that lack of respect 
for the sanctity of contracts by successive administrations at the 
federal and state levels, import bans, and infrastructure challenges 
were major drawbacks.  Although a cordial bilateral relationship 
exists between both countries, the Ambassador said U.S investors 
look beyond the bilateral relationship and focus on the investment 
climate in decision-making. 
. 
Sanctity of Contracts 
--------------------- 
. 
¶3. (SBU) Bello replied that he was aware that the cost of doing 
business in Nigeria was high, but NIPC was working within the GON to 
improve that.  The NIPC was also working with the World Bank to 
introduce Alternative Dispute Resolution (ADR) mechanisms in three 
pilot states, Kaduna, Lagos, and Abia, and plans to expand to other 
parts of the country.  Bello expects the ADR mechanism will 
encourage businesses to operate in Nigeria because it will be a 
positive alternative to Nigeria's long and tortuous judicial 
process.  The Ambassador commended the initiative and solicited 
Bello's support in resolving an ongoing business dispute between a 
U.S. company and the Abia State government, to whom she recently 
sent a letter. 
. 
Investment Climate 
------------------ 
. 
¶4. (SBU) Bello reported that a "Doing Business" committee, which 
became moribund at the end of the Obasanjo administration, will be 
revived to provide policy advice on how to improve the business 
climate.  The "Doing Business" committee will be responsible for 
coordinating input for the World Bank's "Doing Business Report" and 
recommending appropriate policy reforms to improve the investment 
climate.  According to Bello, the committee made some strides during 
the last administration which he believes can be extended. 
. 
One-Stop Investment Center 
-------------------------- 
. 
¶5. (SBU) Bello said a One-Stop Investment Center (OSIC) has been 
established at the NIPC as a facilitating mechanism.  All relevant 
government agencies and ministries are located in the OSIC to 
streamline services required by investors and provide them in a 
transparent and efficient way.  Bello contended that businesses can 
be incorporated within 24 hours at the OSIC and all relevant permits 
and licenses can be obtained there.  The agencies that are currently 
at the OSIC include the Corporate Affairs Commission, the Nigerian 
Immigration Service, the Nigerian Customs Service, the Federal 
Inland Revenue Service, the National Office for Technology 
Acquisition and Promotion, the National Agency for Food and Drug 
Administration and Control, the Central Bank of Nigeria, the 
National Bureau of Statistics, the Ministry of Solid Minerals, the 
Ministry of Finance, the Standards Organization of Nigeria, the 
Federal Capital Territory Administration, and the NIPC.  There are 
 
ABUJA 00000674  002 OF 002 
 
 
plans to expand the OSIC to include the Ministry of Petroleum.  The 
Ambassador lauded the establishment of the OSIC and advised the NIPC 
to publicize its existence by linking it to the GON website and 
making presentations at various investor fora, such as the Corporate 
Council for Africa investment workshops. 
. 
Trade Policy 
------------ 
. 
¶6. (SBU) Regarding trade policy and import bans, Bello opined that 
the bans don't work because goods are eventually smuggled into the 
country without the GON receiving revenue.  When he was Minister of 
Commerce from 1999 to 2003 he advised against bans and for tariffs 
on imports, which could be used to develop the sectors that the GON 
wanted to protect.  Moreover, bans were bad because investors 
require foreign inputs to manufacture in Nigeria and bans thereby 
discourage foreign investment. 
. 
Capacity Building 
----------------- 
. 
¶7. (SBU) Bello asked for the Ambassador's support in providing 
overseas training for his staff and conducting studies on how to 
improve Nigeria's investment climate.  The Ambassador, without 
promising assistance, responded that it would be more useful for 
training to be conducted locally because more of his staff will 
benefit and train-the-trainers program , she opined had more of a 
multiplier effect.  Regarding feasibility studies, the Ambassador 
mentioned that the United States Trade and Development Agency 
(USTDA), which was planning a visit to Nigeria in June 2009, could 
explore possibilities with NIPC during their visit. 
. 
Comment 
------- 
. 
¶8. (SBU) The NIPC leadership seems to have clear goals and how to go 
about achieving them.  Bello's experience as Minister of Commerce 
under Obasanjo gives him a basis for understanding the prerequisites 
for attracting FDI.  He was able to push through some reforms to 
facilitate foreign investment in collaboration with the economic 
team during the last administration, which led to the establishment 
of the OSIC.  He is an advocate for broader reforms on the 
investment climate, reduced tariffs, a more open trade policy and 
ADR.  We hope he has the political dexterity to achieve these goals, 
including achieving an enforcement system for any ADR decisions. 
 
¶9. (U) This message was coordinated with the Consulate in Lagos. 
 
SANDERS