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Viewing cable 07ABUJA451, NIGERIA:AGOA SUCCESS STORIES AND REMAINING CHALLENGES

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Reference ID Created Released Classification Origin
07ABUJA451 2007-03-08 15:25 2011-08-25 00:00 UNCLASSIFIED Embassy Abuja
VZCZCXRO9863
PP RUEHMA RUEHPA
DE RUEHUJA #0451/01 0671525
ZNR UUUUU ZZH
P 081525Z MAR 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 8813
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 6290
RUEHWR/AMEMBASSY WARSAW 0150
RUEHCD/AMCONSUL CIUDAD JUAREZ 0148
RUEHZK/ECOWAS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 ABUJA 000451 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR AF/W (SILSKI) AND AF/EPS (POTASH) 
DEPARTMENT PASS TO USTR (AGAMA) 
ACCRA PLEASE PASS TO WEST AFRICA TRADE HUB 
 
E.O. 12598: N/A 
TAGS: ETRD AGOA ECON EAIDNI
SUBJECT: NIGERIA:AGOA SUCCESS STORIES AND REMAINING CHALLENGES 
 
ABUJA 00000451  001.2 OF 002 
 
 
1.  Summary.  The Nigerian government (GON) has made strides towards 
using AGOA to diversify its exports and move away from relying on 
oil production.  AGOA incentives are yielding some positive results. 
 Category 9 Certification of folkloric and hand loomed textiles and 
the recent Turtle Excluder Devices (TEDs) certification have 
provided opportunities for Nigerian exporters.  GON officials and 
exporters, however, complain that two major challenges to exporting 
to the U.S. are the general negative perception of the GON and its 
citizens; and the very high and stringent minimum quality standards 
requirement for goods entering the U.S. market.  End Summary. 
. 
Recent Developments and Success Stories 
--------------------------------------- 
. 
2.  On February 28, EconOff met with David Ashiru, Advisor to the 
CEO of the Nigerian Export Promotion Council (NEPC), and Opeyemi 
Abebe, Head of the AGOA desk at the NEPC.  Both officials confirmed 
that the Category 9 certification for special forms of textiles 
recently granted to Nigeria had resulted in the export of children's 
clothing made of combined African prints to the U.S.  Both Ashiru 
and Abebe said that though the first sets of shipments were 
exploratory, the exporters confirmed that they have received 
positive responses and orders from U.S. buyers. 
 
3.  Both officials reported that a shrimp exporter recently took 
advantage of the TEDs certification to export shrimps to the U.S. 
The shrimp exporter told the officials that he sold shrimps to 
buyers in the U.S and it was likely that his company would receive 
more orders from the U.S. 
 
4.  Ashiru and Abebe said that a Human Capital Development Center 
had been established in Lagos to train producers and exporters.  The 
center currently focused on commercial apparel producers, and eighty 
students recently completed training in the center. 
 
5.  Ashiru commended the USG for co-sponsoring a U.S. Customs 
seminar in Abuja for Nigerian customs officials, led by Brian 
Fennessy of U.S. Customs and Border Protection, in conjunction with 
the West African Trade Hub (WATH) on November 29, 2006.  He said 
that it was a step in the right direction because such training 
would eventually improve the skills of customs officers and make 
them realize the essence of attending to exporters needs in a timely 
manner.  He welcomed future collaboration with WATH. 
. 
Outreach Efforts 
---------------- 
. 
6.  Various seminars and trade missions were held in 2006, reported 
Abebe, including seminars on shea butter, cashew, handcrafts and 
product packaging.  The seminars were all geared towards improving 
Nigerian exports to the U.S.  There were four trade missions to the 
U.S. during the year, three in collaboration with WATH. 
. 
Remaining Challenges and Increased Efforts 
------------------------------------------ 
. 
7.  Ashiru and Abebe commented that the greatest challenge to 
expanding the benefits of AGOA for Nigeria was the overwhelming 
negative perception of Nigeria and its citizens regarding advance 
fee fraud and corruption among U.S. importers.  They agreed that it 
would take some time to surmount such a perception problem but hoped 
the GON's ongoing anti-corruption and anti-money laundering campaign 
would change attitudes of importers. 
 
8.  Another challenge to increasing AGOA exports were the high 
quality standards required for products exported into the U.S. and 
the dearth of skilled Nigerian customs officers.  The recent customs 
training and the Human Capital Development Center in Lagos were 
positive steps taken by the GON to overcome this problem. 
. 
Comment 
------- 
. 
9.  Nigeria's efforts to diversify its exports from oil to non-oil 
products is a step in the right direction and fits with USG 
objectives for AGOA.  A major hurdle to accelerating Nigerian 
benefits under AGOA is the high cost of doing business in Nigeria. 
Infrastructure - roads, electricity, water, railways - are all in 
horrible condition, while endless delays continue to clear goods at 
the ports.  In addition, the opaque types and multiple number of 
documents required to clear goods at the ports aggravates the 
situation.  If the current economic reforms are continued, a 
transparent and accountable expenditure procedures are implemented 
 
ABUJA 00000451  002.2 OF 002 
 
 
to revamp infrastructure, and more emphasis placed on trade and 
investment policy and structural reforms progress is likely to 
continue. 
 
CAMPBELL