Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 05LAGOS1570, NIGERIA'S VERSION OF MCDONALD'S SAYS PROFITS ARE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05LAGOS1570.
Reference ID Created Released Classification Origin
05LAGOS1570 2005-10-12 09:30 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Lagos
This record is a partial extract of the original cable. The full text of the original cable is not available.

120930Z Oct 05
UNCLAS SECTION 01 OF 02 LAGOS 001570 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON EINV EIND PGOV PREL NI
SUBJECT: NIGERIA'S VERSION OF MCDONALD'S SAYS PROFITS ARE 
DOWN 
 
 
1. (SBU) Summary.  The increase in food and transportation 
prices had cut into the profit margins of Nigeria's 
equivalent to McDonald's -- Mr. Biggs.  The company's 
executives told us food prices are rising because of weak 
infrastructure, inconsistent agricultural policies, and lack 
of local capacity to match demand for certain staple foods. 
Executives stated profit margins decreased by one to two 
percent from 2004 as the restaurant was forced to find 
substitutes for food items such as rice.  End Summary. 
 
----------------------------------- 
Mr. Biggs - Nigeria's Own McDonalds 
----------------------------------- 
 
2. (U) The United Africa Company (UAC) is one of Nigeria's 
largest, diversified companies involved in agriculture, 
manufacturing, logistics and warehousing, and the food and 
beverage service industry.  It owns the largest chain of fast 
food restaurants in Nigeria -- Mr. Biggs with 137 stores 
nation wide, including: Lagos (53), Port Harcourt (13), 
Ibadan (8) and Abuja (7).  UAC also produces its own brand 
name ice cream, bread, and cereal goods. 
 
-------------------------------------- 
Rising Food Prices Hurt Profit Margins 
-------------------------------------- 
 
3. (SBU) UAC Head of Finance, Layi Adetomiwa, told us food 
price increases as well increases in fuel prices, 
transportation costs, and infrastructure costs were cutting 
into the company's profit margins.  Cost of production has 
risen by 15-20 percent over last year, he said.  Last year, 
Mr. Biggs exceeded sales of naira 10 billion (USD 77 million) 
with a profit margin of eight percent.  This year, with more 
stores, projected sales are between naira 11-12 billion (USD 
85 million to USD 92 million), but the profit margin has been 
reduced by one to two percent, Adetomiwa said.  Company 
executives have indicated that they are now placing greater 
focus on providing restaurant services to foreign oil 
companies to recuperate some of the lost revenues from its 
local restaurant businesses. 
 
4. (SBU) Increased food prices forced the company to shift 
additional costs onto consumers by raising the price of many 
menu items.  Consumers are now paying 10% higher prices than 
in 2004.  Meat pies, a very popular item, sell now for naira 
100 (USD .76) as opposed to naira 90 (USD .68) last year and 
combination meals (consisting of rice, chicken, and 
vegetables) now sell for naira 350 (USD 2.69) as opposed to 
naira 320 (USD 2.46) in 2004.  Mr. Biggs is also finding 
substitutes for rice because "there is not enough local 
capacity to provide good quality rice," Adetomiwa said. 
 
5.(SBU) Comment.  Nigeria's Federal Office of Statistics 
(FOS) reports an increase of 18% for various staple foods 
during the past year.  Nongovernmental industry experts give 
a higher estimate.  Depending on their location and on their 
particular dietary mainstays, the average consumer in Nigeria 
is paying between 20-60% more for various staple food items 
than 2004, calculating for both inflation and naira 
fluctuations.  A 50 kilogram bag of rice now sells for naira 
6,000 (USD 46) as opposed to naira 4,500 (USD 35) last year, 
an increase of 33%.  Imported food items like frozen chicken 
and turkey now sell for naira 4,000 (USD 31) per 10 kilogram 
carton, as opposed to naira 2,500 (USD 19) in 2004, an 
increase of 60%.  A standard loaf of bread now sells for 
naira 150 (USD 1.12) as opposed to naira 120 (USD .90) in 
2004, as input costs for sugar and wheat, increased. 
According to industry experts, food items like beans and 
maize have increased by 16.7% and 54% respectively.  End 
Comment. 
 
---------------------------------------- 
Weak Infrastructure and Inconsistent 
Agricultural Policies Hurt Food Industry 
---------------------------------------- 
 
6. (SBU) UAC representatives said poor infrastructure remains 
the key obstacle in local companies' ability to provide lower 
priced meals and services to consumers.  Inadequate power 
supply and bad roads significantly increased transportation 
and production costs.  UAC CEO, Ayo Ajayi, believes Nigeria 
has the capacity to export agricultural products, but 
inadequate infrastructure and an undercapitalized 
agricultural sector are major obstacles.  Adetomiwa said that 
"years of inconsistent agricultural policies had led to an 
underdeveloped sector." 
 
------- 
Comment 
------- 
 
7. (SBU) Comment.  The rising cost of food has hurt both the 
average Nigerian and the local restaurant industry.  Fuel 
price increases, bans on agricultural products, and high 
infrastructure costs negatively affected UAC and other 
companies involved in the food industry.  If Nigeria's 
largest fast food chain restaurant felt the impact of higher 
costs, it is almost a sure bet that less financially robust 
companies have felt an even deeper sting.  So long as 
imprudent agricultural policies remain in play, 2006 is 
likely to be a repeat of 2005 for the local food and 
restaurant industry.  End Comment. 
BROWNE