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 08LAGOS104, CENTRAL BANK RESPONSE TO DEMARCHE ON FOREIGN

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. #08LAGOS104.
Reference ID Created Released Classification Origin
08LAGOS104 2008-03-14 10:48 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Lagos
VZCZCXRO4940
PP RUEHMA RUEHPA
DE RUEHOS #0104/01 0741048
ZNR UUUUU ZZH
P 141048Z MAR 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC PRIORITY 9821
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9546
RUEHLO/AMEMBASSY LONDON 0806
RUEHFR/AMEMBASSY PARIS 0461
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 02 LAGOS 000104 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR AF/W, INR/AA 
STATE PASS USTR FOR AGMA 
STATE PASS OPIC FOR ZHAN AND MSTUCKART 
STATE PASS TDA FOR NCABOT 
STATE PASS EXIM FOR JRICHTER 
TREASURY FOR REUTERS AND HALL 
COMMERCE FOR KBURRESS 
LONDON FOR SUSMAN 
PARIS FOR KANEDA 
 
E.O. 12958: N/A 
TAGS: EFIN EINV PREL PGOV NI
SUBJECT: CENTRAL BANK RESPONSE TO DEMARCHE ON FOREIGN 
INVESTMENT RESTRICTIONS 
 
REF: A. STATE 13856 
 
     B. ABUJA 127 
 
1. (SBU) Summary.  The Ambassador met with the Nigerian 
Central Bank (CBN) Governor Chukwuma Soludo on March 6 to 
express U.S. concerns about planned restrictions on foreign 
investment in Nigerian banks.  Soludo remained firm in his 
intention to press forward with the new rules.  While 
foreigners will be free to apply for banking licenses to 
compete in Nigeria provided they have 25 billion naira (USD 
215 million), they will not be permitted to acquire stakes in 
existing Nigerian banks above 10 percent.  The Governor 
reasoned that foreigners, particularly Americans, were too 
risk adverse and the threat of capital flight was too great 
to allow them to purchase outright existing Nigerian banks. 
He sees Nigerian banks as part of the development framework 
with branches throughout the country, something foreign banks 
have shied away from.  The Ambassador stressed our concern on 
this issue, noting that there should not be any restrictions. 
 Despite our emphasis on this point, the CBN Governor was not 
convinced and the policy is considered firm.  End Summary. 
 
2. (SBU) The Ambassador met with CBN Governor Soludo on March 
6 to express U.S. concerns over the CBN's plans to restrict 
foreign acquisition of Nigerian banks.  When asked by the 
Ambassador about the plans, Soludo acknowledged that Nigeria 
will restrict foreign ownership of Nigerian banks to 10 
percent of a bank's total capital.  He gave the Ambassador a 
copy of a Central Bank circular that will officially announce 
the new restrictions.  The paper elaborates on what the 
governor told the Ambassador.  According to the circular, for 
any Nigerian owned bank, non-Nigerian individual or 
institutional investors may not own more than the share of 
the largest Nigerian investor nor may the total foreign 
shareholding exceed 10 percent.  Foreigners currently owning 
more than 10 percent of a bank are grandfathered in, but they 
may not exceed their current ownership level.  Local Nigerian 
banks may acquire or merge with a foreign bank only if the 
foreign bank has operated in Nigeria for five years and has 
branches in two thirds of the 36 states, excluding branches 
in state capitals.  In that case, foreign ownership of the 
merged bank is restricted to 40 percent. 
 
3. (SBU) Soludo said the risk adverse nature of foreign banks 
was behind the decision.  He pointedly and repeatedly held up 
Citibank as an example of an risk adverse institution, 
claiming the bank had operated in Nigeria for decades while 
establishing few branches and restricting its commercial 
lending to a few corporate clients.  According to Soludo, 
foreign banks like Citibank take commercial lending decisions 
out of the hands of local Nigerians, delaying and preventing 
needed investment in the country.  Soludo also countered that 
politicians in the United States have recently displayed a 
hostile attitude towards foreign acquisition of U.S. 
companies and financial institutions and he asked 
rhetorically what the U.S. Government's reaction would be to 
an hypothetical acquisition of J.P. Morgan by Chinese 
investors.  He did acknowledge that Nigeria may eventually 
revisit the restrictions, but said that would be after his 
own service as Governor was over.  The CBN Governor noted 
that bank licensing requirements for foreigners are the same 
as for Nigerians and foreigners are free to apply for a 
license to operate a bank in Nigeria if they meet the 25 
billion naira (USD 215 million) capital requirement. 
 
4. (SBU) The governor also raised the risk of capital flight 
as a reason for restricting foreign ownership.  He claimed 
that foreigners were too quick to take their funds out of the 
country at the slightest hint of bad news.  Oddly, and 
without irony, Soludo cited last year's call for the 
redenomination of the Nigerian currency as an example. 
(Note: In August 2007 the CBN announced plans to redenominate 
the naira.  The plan was overruled by President Yar'Auda days 
later.  End note).  The CBN estimates that 3 to 5 billion 
dollars in foreign investment left the country on the day the 
 
LAGOS 00000104  002 OF 002 
 
 
Federal Government reversed the plan. 
 
5. (SBU) The Ambassador thanked Soludo for his openness on 
the subject.  She explained the benefits of open investment 
in financial institutions and presented the Governor with a 
non-paper drawn from the talking points in ref A.  The 
Governor thanked the Ambassador for her interest and received 
the non-paper, but was firm in his position.  When asked by 
the Ambassador if the policy was in already place Soludo said 
it was and that he was finalizing the formal announcement. 
 
6. (SBU) In a subsequent lunch of the American Business 
Council attended by the Ambassador and Assistant Secretary of 
Commerce Israel Hernandez, Soludo went on to chide U.S. 
investors for being too risk adverse.  He said that while 
Chinese, Indians, and Europeans were investing in Nigeria, 
Americans were still doing their risk analysis.  In his 
words, American investors are "waiting until the food is 
fully cooked" before coming to the table.  The Ambassador 
countered that Americans are investing in Nigeria, noting the 
numerous U.S. companies operating in the country and the 
interest of those actively exploring the Nigerian market. 
(Note: His comments about AGOA will be reported septel.  End 
Note.) 
 
7. (SBU) Comment:  It is clear that Soludo is set in his 
decision to restrict foreign bank ownership.  It is less 
clear whether that decision is being driven by a genuine 
concern over investment and development in Nigeria or a 
desire to protect established banks and their Nigerian 
owners.  Apparently Soludo does not see the contradiction in 
decrying the lack of American investors while building 
another barrier that could hinder their investment interest. 
End Comment. 
 
8. (U) This cable was cleared by Embassy Abuja. 
BLAIR