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Viewing cable 08LAGOS324, NIGERIA: LAGOS STATE GOVERNOR BRIEFS U/S JEFFERY

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Reference ID Created Released Classification Origin
08LAGOS324 2008-08-13 10:51 2011-08-25 00:00 UNCLASSIFIED Consulate Lagos
VZCZCXRO9456
PP RUEHMA RUEHPA
DE RUEHOS #0324/01 2261051
ZNR UUUUU ZZH
P 131051Z AUG 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC PRIORITY 0119
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHUJA/AMEMBASSY ABUJA 9792
RUEHDS/AMEMBASSY ADDIS ABABA 0185
RUEAWJA/DEPT OF JUSTICE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RULSDMK/DEPT OF TRANSPORTATION WASHDC
UNCLAS SECTION 01 OF 03 LAGOS 000324 
 
SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY 
SIPDIS 
 
STATE PASS USTR FOR AGAMA 
STATE PASS USAID FOR NFREEMAN, GBERTOLIN 
STATE PASS EXIM FOR JRICHTER 
STATE PASS OPIC FOR ZHAN, MSTUCKART, JEDWARDS 
STATE PASS TDA FOR LFITTS, PMARINDOC FOR 
3317/ITA/OA/KBURRESS 
DOC FOR 3310/USFC/OIO/ANESA/DHARRIS 
DOC FOR USPTO-PAUL SALMON 
DOJ FOR MARI-FLORE KOUAME 
TREASURY FOR RHALL, DPETERS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PREL EINV ENRG EFIN ELTN EAGR NI
SUBJECT: NIGERIA: LAGOS STATE GOVERNOR BRIEFS U/S JEFFERY 
ON DEVELOPMENT EFFORTS 
 
1. (SBU) Summary: Under Secretary of State for Economic 
Affairs Reuben Jeffery met July 25 with Lagos State Governor 
Babatunde Fashola (Action Congress).  Fashola briefed the U/S 
on his efforts to develop Lagos State and was generally 
optimistic about the progress of democracy in Nigeria. 
Fashola is trying to improve infrastructure to attract 
investment, partner with the private sector to increase 
security on the waterways and in neighborhoods, and enhance 
the education system by renovating schools and providing free 
books.  He also wants to increase electric power generation 
capacity, but regulations requiring states to sell any 
state-generated power to the national grid for distribution 
limit the extent to which Lagos State can benefit from this 
effort.  He expressed exasperation World Bank loan 
conditions, saying he would look elsewhere for project 
financing, and encouraged the U.S. not to "look down" on 
Africa, an attitude that did not help promote democracy.  End 
Summary. 
 
Positive Outlook on Economy, Political Environment 
--------------------------------------------- ----- 
 
2. (SBU) In a July 25 meeting with Under Secretary of State 
for Economic Affairs Reuben Jeffery, Lagos State Governor 
Babatunde Fashola expressed optimism about Nigeria and the 
Government of Nigeria (GON), saying the GON had adopted 
critical reforms in the political, economic, and judicial 
realms.  Overall, he said he believed Nigerian democracy was 
getting stronger as evidenced by the past nine years of 
democratic governance and a smooth transition of power 
following the 2007 election.  While the system was not 
perfect, he said, the country is learning, and Nigeria,s 
judiciary had the largest and most robust group of judges and 
lawyers in the region.  The economy was getting stronger with 
sustained growth, and investment was yielding a high rate of 
return, he added. 
 
3. (SBU) Fashola outlined how the Lagos State Government 
(LASG) was contributing to the economic development of a 
state that is home to one of the world,s mega-cities by 
cooperating with the city of London to attract investment and 
develop a "financial triangle" connecting the financial 
centers in Lagos, London, and New York.  LASG has begun an 
infrastructure development project, including a Bus Rapid 
Transit system, and the city was currently undergoing "major 
reconstruction" after three decades of neglect, Fashola said. 
 One downside of LASG's ambitious development projects is 
that they fuelled migration into the city which strained the 
system even further, Fashola noted. 
 
Private Sector to Co-finance Security Projects 
--------------------------------------------- - 
 
4. (SBU) The U/S thanked the Governor for his efforts to 
address the safety and security of ConGen Lagos personnel. 
Fashola noted that security in the city was a priority and 
that he had increased patrols on the waterways.  In addition, 
LASG was launching a security trust fund, co-financed by the 
private sector, to acquire additional patrol vehicles, 
communication equipment, and information technology systems. 
As part of the project, cameras will be installed around the 
city for security, he reported, and LASG had signed an 
agreement with U.S.-based Cisco Systems to develop a security 
information data warehouse. 
 
Going for Broke to Address Electric Power Issue 
--------------------------------------------- ---- 
 
5. (SBU) Fashola said he had decided "to go for broke" to 
address lack of electric power in the state. States can 
generate power, he said, but any power generated had to be 
sold to the GON and connected to the national grid precluding 
 
LAGOS 00000324  002 OF 003 
 
 
states from controlling its distribution.  Fashola said he 
believed the power sector needed to be deregulated but the 
first step to addressing the power shortage would be to get 
the pricing, safety, and quality standards right.  While the 
Federal Government was developing plans to address the issue, 
he said, LASG had taken steps to encourage the establishment 
of companies to manufacture cables, transformers, and other 
equipment in order to be ready when the sector was on its 
feet.  Fashola also said he was assessing the feasibility of 
establishing a nuclear power plant, although he admitted the 
concept is still in its infancy. 
 
Legislation Required to Actualize Development Plans 
--------------------------------------------- ------- 
 
6. (SBU) Governor Fashola believes development plans need to 
be embodied in legislation so that they cannot be altered, 
reneged on after change of political administrations or 
altered on a whim. Legislation-based development plans will 
limit discretion, force government to follow plans, and make 
the court the arbiter when disputes arise, he said.  Fashola 
said he is rushing to complete an infrastructure master plan 
to allow people to envision what Lagos State will look like 
in ten years and to guide rational investment decisions.  The 
state is moving ahead with the Lekki Free Trade Zone. 
U.S.-based AYR Logistics had just signed a concession 
agreement to develop 1,000 hectares of the trade zone, he 
told the Under Secretary. 
 
Lagos to Promote Aquaculture, Meat Processing Industries 
--------------------------------------------- ----------- 
 
7. (SBU) Governor Fashola noted the lack of available land 
for farming and agriculture production in Lagos State, but 
said Lagos State had a comparative advantage in aquaculture 
which he planned to exploit.  Fashola will zone the Eastern 
axis of Lagos State to provide incentives for aquaculture and 
meat processing industry development, in which he would 
welcome U.S. investment. 
 
Education Infrastructure Missing, Teachers Need Training 
--------------------------------------------- ----------- 
 
8. (SBU) Fashola lamented the state of the education system 
in the state.  He said teachers needed additional training, 
more schools were needed, and existing ones needed repair and 
maintenance.  School renovation should include the provision 
of drinking water and construction of green areas, and 
playgrounds.  Funding remained a major challenge on these 
projects, but Lagos State was committed to providing free 
books for students; these books are currently under 
production. 
 
U.S. Should Not "Look Down" on Africa 
------------------------------------- 
 
9. (SBU) On democracy, the U.S. model must be assessed in 
light of cultural differences, Fashola underscored.  He 
maintained that democracy meant nothing without food, water, 
and power and chastised the United States for looking down on 
Africa, he said.  Such an attitude breeds mistrust and 
without trust there is no basis for partnership. 
 
Local Financing Schemes to Restore Trust in Government 
--------------------------------------------- --------- 
 
10. (SBU) Fashola complained of delays, red tape and 
unreasonable conditions that plagued World Bank-financed 
projects in Lagos.  Projects financed by foreign assistance 
sustained the notion that Nigeria's government do not work, 
he said which is detrimental to democracy.  As a result, 
Fashola planned to look for alternative project-financing 
 
LAGOS 00000324  003 OF 003 
 
 
schemes for development in Lagos State. 
BLAIR