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RUEHSA/AMEMBASSY PRETORIA 1930
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RUEATRS/DEPT OF TREASURY WASHDC
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RUEHC/DEPT OF LABOR WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEAIIA/CIA WASHDC
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RHMFISS/HQ USAFRICOM STUTTGART GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 ABUJA 000950 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
BAGHDAD FOR DMCCULLOUGH 
DOE FOR GPERSON, CHAYLOCK 
LABOR FOR SHALEY 
USDA/FAS/OTP FOR MCKENZIE 
DEPARTMENT PASS TO USAID 
USAID/AFR FOR ATWOOD 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ELAB EPET EFIN NI
SUBJECT: NIGERIA:  BI-WEEKLY POL/ECON UPDATES FOR MAY 1-15, 2009 
 
Ref: Abuja 00820 
 
ABUJA 00000950  001.2 OF 002 
 
 
¶1. (U) The following is a joint Embassy Abuja, ConGen Lagos 
compilation of May 1-15 political/economic highlights, which did not 
feature in our other reporting, covering: 
 
--Economics 
--Politics 
--Environment and Health 
--Oil, Gas, and Power 
 
Economics 
--------- 
 
¶2. (U) U.S. PARTICIPATES IN AN INTERNATIONAL SYMPOSIUM ON NATURAL 
PRODUCTS DRUG DISCOVERY: The Nigerian National Institute for 
Pharmaceutical Research and Development (NIPRD) in collaboration 
with the U.S. National Institute of Allergy and Infectious Diseases 
(NIAID) held a three day workshop (May 12-14) under the theme: 
"Research Continuum in Natural Products Drug Discovery."  Scientists 
and policy makers from Nigeria, the United States, the United 
Kingdom, South Africa and other African countries participated and 
exchanged research experience and discussed means for enhanced 
collaborations to find cure for malaria, tuberculosis, and other 
diseases that burden Nigeria and other African counties.  In remarks 
she gave at the opening of the symposium, the Ambassador praised the 
cooperation between U.S. and Nigerian scientists and expressed her 
hope that this joint effort will result in better therapeutic 
products.  Nigerian Minister of Health Babatunde Osotimehin thanked 
the U.S. for enhancing the capacity of NIPRD in the area of 
biomedical research.  He also praised overall U.S. health assistance 
as responsible for saving millions of lives in Nigeria.  The 
symposium concluded with a set of recommendations for enhancing 
research collaborations, creating a central research database 
system, and strengthening drug safety and bioethics standards. 
 
 
¶3. (U) U.S. TO PARTNER WITH NIGERIA ON ICT DEVELOPMENT: The Foreign 
Commercial Service hosted CTO 2009, a four day technology seminar 
and tradeshow in Lagos May 11-15.  The Ambassador, speaking at the 
opening of the seminar, said the US stood ready to contribute 
further to the development of the information technology (IT) in 
Nigeria.  The Chief Executive Officer of Nigerian Communications 
Commission (NCC) Ernest Ndukwe said that the GON had helped boast 
the sector since 2003.  Thirty companies participated in this year's 
trade show, down slightly from last year. 
 
¶4. (U) NIGERIA, CAMEROON SIGN $155.29 MILLION LOAN AGREEMENT: On May 
14, Nigeria and Cameroon signed a $155.29 million (225 billion 
naira) loan agreement for a multi-national highway and transport 
facility project between the two countries.  The objective of the 
loan project is to facilitate proposed Lagos-Mombasa-Trans-African 
Highway infrastructure development for the continent.  Other 
projects include rehabilitation and construction of social and 
market infrastructure such as feeder roads, market sheds, building 
agricultural facilities, and rehabilitation of school 
infrastructure. 
 
¶5. (U) YAR'ADUA SEEKS REVIEW OF THE 2009 BUDGET: On May 14, 
President Yar'Adua sent a letter to the House of Representatives 
expressing concerns over the Government's ability to successfully 
implement the 2009 budget, and seeking a budget review.  In the 
letter, Yar'Adua stated that the 2009 budget faces a major challenge 
due to declining revenues.  The House Committees on Finance and 
Appropriation said it will investigate the implementation of the 
2009 budget. 
 
Politics 
-------- 
 
¶6. (U) FULANI DEPORTATIONS: In an interview with the Daily Trust on 
 
ABUJA 00000950  002.2 OF 002 
 
 
May 11, Representative Ahmed Idris (Action Congress - Plateau 
State), who raised a motion expressing concern over Plateau State's 
recent "deportation" of Fulani herdsman from Wase Local Government 
Area, said that the State's claim that the deportations were carried 
out for security reasons is "completely false" and said that he 
thought that the state was carrying out "ethnic cleansing" or trying 
"to thwart the growth of my constituency" (reftel).   Idris claims 
that the deportations, which separated several families, violate 
Sections 41(1) and 43(1) of the 1999 constitution.  He is demanding 
that the individuals who were deported be returned.  On Tuesday May 
12, the Daily Trust reported that Abubakar Badu, the Chairman of the 
Wase Local Government Area, was held hostage in his office for ten 
hours by local government staff who demanded that he pay them two 
months' delinquent salary, and accused him of using their salaries 
to evacuate Fulanis from Wase. 
 
¶7. (U) FACTIONS IN THE CNPP:  According to the Vanguard newspaper, 
Balarabe Musa, former governor of Kaduna State, was removed as the 
Chairman of Conference of Nigerian Political Parties (CNPP) and 
replaced with the National Chairman of the Citizen's Popular Party 
(CPP), Maxi Okwu.  Okwu was the Secretary-General of the CNPP when 
it was founded in 2002.  Musa claimed that the decision to remove 
him as chairman was decided by a faction of the party and that 
another faction is still under his leadership. 
 
Environment and Health 
---------------------- 
 
¶8. (SBU) KANO, PFIZER AGREE ON $75M COMPENSATION: Kano State 
government and Pfizer Pharmaceutical Company reached a $75 million 
out-of-court settlement over the 1996 Trovan test in the state. 
About $35 million would go to victims, $30 million to the state 
government and $10 million to lawyers.  Kano Governor Ibrahim 
Shekarau disclosed that full payment might not be made until 2011, 
as Pfizer agreed to build a hospital as part of the agreement. 
Pfizer Country Manager Enrico Liggeri told visiting Nigeria Desk 
Officer and Lagos EconOff on May 15 that, while the two sides had 
agreed on the compensation amount, they had yet to develop a 
transparent system to distribute the funds to the victims.  Liggeri 
said the number of supposed victims that have stepped forward is 
more than ten times the number that participated in the study and 
expressed concerns that politicians seeking reelection in 2011 would 
divert the funds.  To compensate, Pfizer is now looking for a 
reputable NGO to assist with distribution. 
 
Oil and Gas 
----------- 
 
¶9. (SBU) PLANS FOR GAS EXPLORATION IN ANAMBRA STATE: Igwe Nnaemeka 
Achebe, a traditional ruler in Onitsha, Anambra State told Energyoff 
that Afren Energy and an unnamed local partner plan to explore for 
non-associated natural gas in the Anambra Basin.  Achebe said 
Afren's plans are to develop the gas for power generation and 
industrial use in the Anambra-Imo region.  He also said the Anambra 
State government is trying to follow the lead of Lagos State and 
increase internally generated revenue for taxes instead of relying 
on funds from the Federal Government.  Achebe is a retired external 
affairs executive for Shell Nigeria and Shell International.  He is 
traveling to NYC to participate as a witness in an ongoing lawsuit 
that accuses Shell of complicity in the arrest and execution of 
Ogoni writer and activist Ken Saro Wiwa by the military government 
in 1995. 
 
SANDERS