VZCZCXRO8188
PP RUEHMA RUEHPA
DE RUEHUJA #2198/01 3381746
ZNR UUUUU ZZH
P 041746Z DEC 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 7674
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHOS/AMCONSUL LAGOS 2444
RHMFISS/HQ USAFRICOM STUTTGART GE
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC

UNCLAS SECTION 01 OF 03 ABUJA 002198 
 
SENSITIVE 
SIPDIS 
 
STATE FOR AF/FO, AF/W, AF/RSA, DRL, INR/AA; 
USAID FOR AFR/WA (DALZOUMA) 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EAIR EPET NI
SUBJECT: NIGERIAN NUGGETS -- DECEMBER 4, 2009 
 
REF: ABUJA 02027 
 
¶1. (U) Mission Nigeria provides the following compilation of 
recent political, economic, and social developments not 
previously reported. 
 
------------------------- 
SGF PRAISES DELTA AMNESTY 
------------------------- 
 
¶2. (SBU) Permanent Secretary Ambassador Chike Alex Angigbo, 
speaking on behalf of his boss, Secretary to the Government 
of the Federation Alhaji Yayale Ahmed, praised President's 
Yar'Adua's action on Niger Delta amnesty during a November 25 
stakeholders' roundtable on "Enhancing Positive Engagement of 
Non-State Actors," sponsored jointly by Presidential Special 
Advisor on Relations with Civil Society and the European 
Union (EU).  He declared that "militants can turn their lives 
around and become fruitful to society."   Referring to his 
own experience, he said, "I used to fight the GON, but today 
I am serving at the highest position in the GON."  The 
speaker asserted that, since amnesty began, crude oil 
production has increased. 
 
----------------------------------------- 
GON CONSIDERS CLOSING DIPLOMATIC MISSIONS 
----------------------------------------- 
 
¶3. (U) Presidential Advisory Council on International 
Relations Chairman Chief Emeka Anyaoku recently announced 
that the Nigerian Government (GON) plans to close ten 
diplomatic missions due to inadequate funding.  Various 
observers, including editorial writer Akinterinwa in the 
November 29 edition of "This Day," criticized the plan, 
arguing that "diplomatic reductionism" could seriously 
undermine Nigeria's long term foreign policy interests.  He 
noted that closing ten missions, which would only save about 
20 million dollars, would be inconsistent with Nigeria's 
declared commitment to raising African cooperation and 
assistance, undermine Nigeria's ability to engage in global 
politics, and narrow career opportunities for Nigerian 
Foreign Service Officers. 
 
------------------------------------------ 
NIGERIA LAGS IN POINT OF SALE TRANSACTIONS 
------------------------------------------ 
 
¶4. (U) Interswitch Nigeria CEO Mitchell Elegbe said at the 
December 1 Lagos Business School monthly meeting that 1.2 
billion naira (about $8 million) worth of e-payment 
transactions have so far taken place in 2009.  Automated 
Teller Machine (ATM) transactions account for 80 percent of 
these transactions, while on-line and point of sale (POS) 
terminal business make up 20 percent.  He said Nigeria only 
has 10,000 ATMs and opined that the recent directive by the 
Central Bank of Nigeria for banks to stop deploying ATMs 
outside bank premises will  further impede the already slow 
growth of ATMs, first introduced in Nigeria in 2002.  Many 
bank customers restrict use of ATM cards, though convenient, 
because of rampant e-payment fraud.  Nigeria has 27 switching 
companies mostly focused on banking solutions.  Merchants 
restrict the use of POS devices because they do not want to 
miss out on the "tips" they receive when a customer pays cash 
and the merchant appears not to have change -- a common 
occurrence in Nigeria.  With POS, only the exact amount is 
transmitted, omitting any "tip."  Elegbe said Interswitch 
plans to expand its payments solutions to other sectors, such 
as transportation (toll fees), health, and education. 
 
--------------------------------------------- - 
DELTA AIRLINES CODE-SHARES WITH NIGERIAN EAGLE 
--------------------------------------------- - 
Q-------------------------------------------- -- 
 
¶5. (U) Local media reported on December 1 that Delta airlines 
entered into a code sharing arrangement with Nigerian Eagle 
(formerly called Virgin Nigeria) in response to Arik's new 
service from Lagos to New York.  Flights from Atlanta to 
Lagos and New York to Abuja will link up with regional 
Nigerian Eagle flights.  According to local press, Nigerian 
Eagle also announced a code-sharing arrangement with 
Ethiopian Airlines. 
 
--------------------------------------------- -- 
 
ABUJA 00002198  002 OF 003 
 
 
REAL ESTATE PRICES DROP IN LAGOS, RISE IN ABUJA 
--------------------------------------------- -- 
 
¶6. (U) Real estate prices dropped an average of 17 percent on 
both Ikoyi and Victoria Islands during 2009.  Luxury 
apartment rents decreased 17 percent, while detached housing 
decreased 40 percent, according to a local financial analyst. 
 A housing deficit of 16 million units exists, mostly for the 
middle- and lower-middle class.  Most, if not all, new 
construction on Ikoyi and Victoria Islands involve luxury and 
upscale accommodations.  Infrastructure limitations, 
especially roads and essential public works, and mortgage 
reform remain key obstacles to meeting this deficit. 
Industry observers expect the sector to rebound in 2010.  In 
contrast, according to local press, the cost of housing in 
the Federal Capital Territory continues to rise.  House 
hunters say properties are available, but the high costs and 
the expectation to pay the rent for two years up-front pose 
major deterrents. 
 
----------------------------------- 
AFRICA FINANCE CORPORATION FACELIFT 
----------------------------------- 
 
¶7. (U) Africa Finance Corporation (AFC) announced November 30 
that Adebayo Ogunlesi has been appointed its new chairman, 
replacing former Central Bank of Nigeria (CBN) Governor 
Charles Soludo.  As a former Credit Suisse Investment Banking 
Division Executive Vice Chairman, Ogunlesi was an attorney 
with a New York law firm and served as a law clerk to U.S. 
Supreme Court Associate Justice Thurgood Marshall from 1980 
to 1981.  Industry watchers see the AFC's choice of Ogunlesi 
as an attempt to improve its image as a multilateral finance 
institution. The AFC has suffered controversies, including 
its establishment through unauthorized funds during CBN 
Governor Soludo's tenure as governor,  loss of board members 
during the August 14 CBN sacking of five bank Chief Executive 
Officers, and its listing among Oceanic Bank loan defaulters. 
 
------------------------ 
CLIMATE CHANGE AWARENESS 
------------------------ 
 
¶8. (U) The West Africa Women's Association (WAWA) Nigeria 
Chapter held a conference in Abuja November 23 to 24 about 
the effects of climate change on women's health.  Conference 
organizers sought to increase awareness, build capacity, and 
mobilize women from the region on socio-economic issues that 
affect African women and children.  WAWA representative Dr. 
Beatrice Ubeku  described the effects of climate change on 
women in developing countries as overwhelming, citing heat 
waves, clean water shortages, and food scarcity as the most 
devastating problems.  Ubeku emphasized that African women 
needed education about desertification and encouragement to 
use alternative energy sources.  During the conference, 
participants announced that the GON recently approved a clean 
development mechanism called the "Save-80 Wood Stove" as part 
of GON efforts to provide alternative energy sources to 
prevent deforestation.  WAWA proposed that the GON enhance 
its efforts to inform women about climate change, improve the 
quality of information available on climate change, and 
implement stiffer penalties on gas flaring and other 
environmental hazards that pose health risks to women and 
children. 
 
---------------------------------- 
A CALM DELTA INCREASES ELECTRICITY 
---------------------------------- 
 
¶9. (U) Less strife in the oil-rich Niger Delta and the 
Q9. (U) Less strife in the oil-rich Niger Delta and the 
resulting increase of oil and gas supplies to power plants 
have increased Nigeria's electricity supply. 
National power supply rose from 1,400 megawatts (MW) in July 
to about 3,330 MW in December.  However, while relative calm 
prevailed in the Delta, Nigeria's plan to increase power 
supply to 6,000 MW by year's end is still constrained by the 
lack of a policy, regulatory, and tariff regime that would 
promote private investments.  To overcome barriers to private 
sector investments in power, USAID launched the Nigerian 
Energy and Climate Change project (NECC) and will hold a 
two-day workshop to "Overcome Barriers to Independent Power 
Production."  USAID is also working with other donors 
including the United Nations, World Bank, Japan, Sweden, 
 
ABUJA 00002198  003 OF 003 
 
 
Britain, Spain, and France to develop a plan outlining the 
elements and timing of an effective donor package for the 
ongoing peace process in the Niger Delta. 
 
------------------------ 
IBORI GETS ANOTHER DELAY 
------------------------ 
 
¶10. (U) Federal High Court Judge Marcel Awokulehin in Asaba, 
Delta State, again deferred (for the fourth time) a decision 
December 4 in the prosecution by the Economic and Financial 
Crimes Commission of former Delta State Governor James Ibori 
and associates on 170 counts of money laundering.  The local 
press quoted the judge as indicating that he wanted to "err 
on the side of caution," apparently referring to multiple 
petitions filed against him.  Ibori's lawyers had sought to 
claim that the EFCC had not established a "prima facie" case 
against him. 
 
¶11. (U) Embassy Abuja and ConGen Lagos collaborated on this 
telegram. 
 
SANDERS