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Viewing cable 09ABUJA714, NIGERIA: BI-WEEKLY POL/ECON UPDATES FOR APRIL 1-17, 2009

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Reference ID Created Released Classification Origin
09ABUJA714 2009-04-24 13:44 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Abuja
VZCZCXRO8394
RR RUEHMA RUEHPA
DE RUEHUJA #0714/01 1141344
ZNR UUUUU ZZH
R 241344Z APR 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC 5844
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHYD/AMEMBASSY YAOUNDE 0788
RUEHSA/AMEMBASSY PRETORIA 1839
RUEHGB/AMEMBASSY BAGHDAD 0228
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUEAIIA/CIA WASHDC
RUEKDIA/DIA WASHDC
RHMFISS/HQ USAFRICOM STUTTGART GE
RUZEJAA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS SECTION 01 OF 05 ABUJA 000714 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT PASS TO USTR-AGAMA 
BAGHDAD FOR DMCCULLOUGH 
DOE FOR GPERSON, CHAYLOCK 
LABOR FOR SHALEY 
USDA/FAS/OTP FOR MCKENZIE 
USAID/AFR FOR ATWOOD 
 
E.O. 12958: N/A 
TAGS: PGOV ECON ELAB EPET EFIN EAGR KDEM NI
SUBJECT: NIGERIA:  BI-WEEKLY POL/ECON UPDATES FOR APRIL 1-17, 2009 
 
REF: ABUJA 0532 
 
1. (U) The following is a joint Embassy Abuja, ConGen Lagos 
compilation of April 1-17 political/economic highlights, which did 
not feature in our other reporting, covering: 
 
--Politics 
--2011 Elections 
--Human Rights and TIP 
--Labor 
--Environment and Health 
--Corruption and Crime 
--Oil, Gas, and Power 
--Delta Incidents 
 
Politics 
-------- 
2. (U) CANADIAN HOSTAGE IN KADUNA:  On April 16, Canadian citizen 
Julie Ann Mulligan was abducted by armed men in the northern city of 
Kaduna.  Mulligan, 45 years old, was one of five Canadians in the 
country on a Rotary exchange when armed men ambushed the vehicle she 
was traveling in.  According to press reports, the kidnappers have 
demanded a 20 million naira ($136,000) ransom in exchange for her 
release.  They kidnappers also alleged that Mulligan was extremely 
ill, but the status of her health has not yet been confirmed. 
Although kidnappings are a common occurrence in the Niger Delta 
region, this is the first kidnapping in the Northern part of the 
country. 
 
3. (U) NEW GBONG GWOM JOS: Jacob Buba Gyang has been appointed as 
the new Gbong Gwom Jos (a traditional ruler of the Berom Kingdom in 
Plateau State).  He succeeds the late Da Victor Pam who died on 
March 7.  Gyang is from the Du district of Jos South and is in his 
late fifties.  Shortly after his appointment, on April 9, the Gbong 
Gwom made news headlines again when the House of Representatives 
threatened to arrest the Gbong Gwom, and other former officials of 
the Nigerian Customs Service (NCS) over their refusal to send 
documents to the Committee on Customs for their investigation of the 
establishment. (Note: Gyang is the immediate past 
Comptroller-General of the Nigerian Customs Service who left the 
office in 2007.  End Note.)  The committee chairman, Representative 
Yakubu Dogara, said that the stakeholders have until April 16 to 
make their submissions and the committee will not hesitate to invoke 
laws compelling the stakeholders to respond. 
 
4. (U) COUNCIL TO REINVIGORATE NIGERIA'S FOREIGN POLICY: On April 
16, President Yar'Adua inaugurated a six-man Honorary Presidential 
Advisory Council on International Relations which he established to 
"reinvigorate" Nigeria's foreign policy process "in the light of 
prevailing realities in today's increasingly complex world".  The 
Council is chaired by former Commonwealth Secretary-General and 
Minister of Foreign Affairs, Chief Emeka Anyaoku. 
 
2011 Elections 
-------------- 
5. (U) "MEGA-PARTY" HOLDS SECOND MEETING: The newly formed 
opposition "mega-party" held a second meeting in Lagos on April 7. 
Buba Galadima, who attended the meeting as a representative of 
General Muhammadu Buhari, former head of state and All Nigeria 
Peoples Party presidential candidate in the 2003 and 2007 elections, 
told Poloff on April 17 that participation in the party is growing. 
However, apart from a general consensus of a need to stand firm 
against criticism by the People's Democratic Party (PDP), Galadima 
did not have any other progress to report.  He said that the group 
will meet again in May (most likely in Abuja) to determine the 
party's name, logo, etc. 
 
6. (U) PDP ENDORSES PLATEAU GOVERNOR FOR 2011: On April 14, the PDP 
in Plateau State endorsed Governor Jonah Jang for a second term in 
office, despite criticism over his handling of the November 2008 
violence in Jos.  According to a statement by Commissioner of 
Commerce and Industry, Na'Allah Mutbam, no one would be stopped from 
 
ABUJA 00000714  002 OF 005 
 
 
running for governor in 2011, but he added that there is "no 
vacancy" for the seat. 
 
Human Rights and TIP 
-------------------- 
7. (U) HRR IN TELL MAGAZINE: The cover story of the April 20 edition 
of the local TELL Magazine was titled "Nigeria: Great Nation, Poor 
Human Rights" and highlighted much of the 2008 U.S. Human Rights 
Report released in March.  The article also suggests that the recent 
"redeployment" of the National Human Rights Commission Executive 
Secretary, Kehinde Ajoni (ref A) was a result of her agency's 
coordination with the "scathing" USG report.  The article indicated 
that Ajoni's honest assessment of Nigeria's human rights situation 
during the GON's Universal Periodic Review at the UN Human Rights 
Council in February was the "straw that broke the camel's back" 
after Attorney General and Minister of Justice Michael Aondoakaa 
attempted to defend and downplay accusations.  Aondoakaa recalled 
Ajoni back to the Ministry of Justice on March 19 and replaced her 
with Roland Ewubare, a close personal associate of his. 
 
8. (U) TIP LAW NEEDS AMENDMENT SAID NEW EXEC SEC: On April 8, the 
National Agency for the Prohibition of Trafficking in Persons 
(NAPTIP) held its 14th Annual Stakeholders Consultative Forum in 
Abuja.  NAPTIP's new Executive Secretary, Simon Egede, announced 
that the federal government was considering another amendment to the 
2003 Trafficking in Persons Law Enforcement and Administration Act, 
which was already amended in 2005 to increase penalties for 
traffickers.  Egede said that the Act is "inadequate" to prosecute 
newer forms of TIP-related crimes that have emerged since the Act 
was previously amended.  He hopes the changes will provide a "more 
comprehensive legal framework to fight TIP and forced labor." 
 
Labor 
----- 
9. (U) DEREGULATION: LABOR AND CIVIL SOCIETY TO STAGE MAY 1 MASS 
RALLY:  Vanguard reported on April 20 that General Secretary of the 
Nigeria Labour Congress (NLC) John Odah announced that the Labor and 
Civil Society Coalition (LASCO), along with its other civil society 
partners, were threatening to hold a nationwide strike on May 1. 
The groups plan to hold a mass rally to protest the deregulation of 
the "downstream sector" of the petroleum industry, which they fear 
will end Nigeria's current system of subsidized pricing for 
gasoline.  Odah stated that organized labor is determined to resist 
the government planned deregulation. 
 
Environment and Health 
---------------------- 
10. (U) GON IMPOSES FINE ON SHELL OVER OIL SPILL: According to press 
reports, on April 14, the Nigerian National Oil Spill Detection and 
Response Agency (NOSDRA) imposed a one million naira ($6,667) fine 
on the Shell Petroleum Development Company (SPDC) for "its careless 
handling of oil spillage in the Southern Ijaw Local Government Area 
of Bayelsa State."  The spill took place on September 26, 2008 and 
resulted in a fire that damaged adjacent farmlands.  In addition, 
Shell was directed to clean-up and restore the affected sites. 
NOSDRA also stated that it will conduct a damage assessment to 
determine whether direct compensation to the victims is warranted. 
 
 
11. (U) PRESIDENT APPROVES PLAN TO CLEAN-UP OGONILAND IN RIVER 
STATE: According to press reports, on April 16, President Yar'Adua 
approved a technical plan for cleaning-up sites damaged by oil 
spills in the oil-rich Ogoni Local Government Area in Rivers State. 
The plan was developed by a Presidential Technical Committee 
composed of the Nigerian National Oil Spill Detection and Response 
Agency (NOSDRA), the United Nations Environmental Program, Shell 
Petroleum Development Company (SPDC) and representatives of the 
Ogoni community.  As a first step, an assessment will be conducted 
to determine the extent of oil pollution, which will be followed by 
clean-up and restoration efforts.  The leader of the Movement for 
the Survival of Ogoni People, Ledum Mitee told the media that he 
hoped "Shell will honor its commitment made before President 
 
ABUJA 00000714  003 OF 005 
 
 
Yar'Adua, as the company had made similar commitments in the past 
but failed to implement them."  The clean-up project, estimated to 
cost a $10 million, is to be jointly financed by Shell and the GON. 
 
 
12. (U) NIGERIAN SENATE HOLDS WORKSHOP ON BUSHFIRES: On March 31, 
ESTOff attended the Nigerian Senate Committee on the Environment's 
one-day workshop on "Bushfire Prevention and Control in Nigeria." 
The workshop was held in collaboration with the Fire Disaster 
Prevention and Safety Awareness Association of Nigeria (FDPSAAN), a 
local nongovernmental organization.  According to several speakers, 
bushfires (local name for brushfires) are primarily a result of 
deliberate acts to clear land for cultivation, reinvigorate animal 
pasture, and aid in hunting (particularly bush meat).  To a lesser 
extent, lightning and pipeline vandalism were identified as 
contributors.  Bushfire, apart from causing loss of life and 
property damage in rural communities, destroys natural forests and 
wildlife habitat and contributes significantly to erosion and 
desertification.  The workshop, inaugurated by the President of the 
Nigeria Senate David Mark and attended by the Minister of 
Environment John Odey, brought needed attention to the widespread 
problem, as well as its impact on life, property, the environment, 
and food security.  Participants concluded by calling for increased 
public sensitization and national legislation on bushfire. 
 
13. (U) KANO CITY UNVAILS PLAN TO BETTER MANAGE MUNICIPAL WASTE: The 
northern Nigerian city of Kano, with over nine million residents, 
produces 2,000 tons of garbage daily, but sanitation workers there 
can handle only 800 tons.  The rest is piling up on the streets and 
highways posing serious environmental and health risks to city 
residents, according to city officials.  The city has increased its 
workforce from 3,000 to 3,602 and added fifty trucks and equipment 
to its fleet.  In addition, the city plans to launch a public 
education program to sensitize residents to change their attitudes 
and involve them in clean-up efforts.  The State is also awaiting 
approval of new regulations, which will give more teeth to the Kano 
State Waste Management Commission's enforcement authority. 
 
14. (U) THE EUROPEAN COMMISSION ALLOCATES 4.7 MILLION EUROS TO 
TACKLE MENINGITIS: According to press reports, the European 
Commission (EC) donated 4.7 million euros ($6.1 million) to support 
anti-meningitis efforts in Nigeria and Niger as part of its plan to 
contain the spread of the disease in West Africa.  The fund would be 
used to provide treatment for those already affected by the disease. 
 The EC said the epidemic had already claimed 1,840 lives in the 
region, out of which 1,161 were Nigerians. 
 
15. (U) ERADICATION OF POLIO AN ACT OF INTERNATIONAL CITIZENSHIP: 
During the 52nd meeting of the Nigerian National Council on Health 
held in Kano in Northern Nigeria on April 5-6, the Nigerian Minister 
of Health Babatunde Osotimehin stated that Nigeria has a "long way 
to go in disrupting the transmission of polio."  The minister added 
that "it has become worrisome that we have become exporters of the 
disease to our neighbors, and besides the global concern, Nigerian 
children continue to be paralyzed by the virus."  In 2008, 806 
Nigerian children were paralyzed by polio, nearly three times the 
figure from 2007.  (Note:  So far in 2009, at least 68 Nigerian 
children have been affected and 18 of them paralyzed.  End Note). 
He lamented the spread of the disease to the south of the country 
and the minimal progress against the disease in the north.  Minister 
Osotimehin lauded the improved efforts of the GON and its partners 
and encouraged governments and communities to strengthen their 
partnerships, "as eradicating polio is an act of international 
citizenship." 
 
16. (U) 5,157 KILLED IN ROAD ACCIDENTS SINCE 2005:  According to the 
Corps Marshal of the Federal Road Safety Commission, Osita Chidoka, 
accidents involving tractor-trailers, including tankers, resulted in 
5,157 deaths and 13,251 injuries in the past three years. 
 
Corruption and Crime 
-------------------- 
 
ABUJA 00000714  004 OF 005 
 
 
17. (U) POLICE REFORM PANEL RECOMMENDATIONS TO BE IMPLEMENTED: 
According to March 31 press reports, President Yar'Adua approved the 
implementation of 250 out of 400 recommendations he received from 
the Police Reform Panel, which submitted its report in December 
2008.  The article also noted that Minister of Police Affairs, Dr. 
Ibrahim Yakubu Lame, said the GON will spend 2.8 trillion naira ($19 
billion) over the next five years on implementation of the 
recommendations. 
 
Oil, Gas, and Power 
------------------- 
18. (SBU) NNPC FOCUSES ON INCREASED REVENUE BASE: In a meeting on 
April 8, 2009 with the new Group Managing Director (GMD) of Nigerian 
National Petroleum Corporation (NNPC), Mohammed Barkindo told AIDOff 
and EconCouns that the corporation's short term focus was to secure 
a strong revenue base that could incubate its plans for medium and 
long term objectives.  Barkindo shared that in the current revamping 
of the oil and gas industry the plan for upstream development would 
involve increased crude production and reserves as well as the 
development and implementation of gas investment strategies to 
address gas flaring.  The corporation's short term plan was to 
rebuild the organization by growing production by an annual rate of 
20%; upgrade the quality of Nigerian Petroleum Development Company 
(NPDC) professionals; upgrade the infrastructure and technology; 
enhance processes and systems; continue capacity development; and 
establish and implement MOUs with host communities with a view to 
having uninterrupted operations.  According to Barkindo, the short 
term initiative will lead to increased performance of investments in 
existing oil fields.  In downstream operations, Barkindo said the 
refineries were being positioned to increase their respective 
refining capacity from 40%in 2009 to 80% in 2011 with the Kaduna 
Refining and Petrochemical Company (KRPC) budgeted for a major 
overhaul this year and both the Port Harcourt Refining Company 
(PHRC) and Warri Refining and Petrochemical Company (WRPC) for 
overhaul next year.  Barkindo also shared that NNPC would invest in 
power and would work to become an energy business even as it strived 
to invest in renewable energy and that NNPC was positioning itself 
to invest in the unilateral/ bilateral Clean Development Mechanism 
projects. 
 
19. (SBU) POWER PLANTS' OUTPUT DROPS:  Two Nigerian executives, one 
heading the local office of a major American industrial product 
manufacturer and one heading the power generation division of a 
Nigerian energy company, independently told Energyoff on April 14 
that during the week prior output from Nigeria's power plants had 
fallen to 500MW per day.  They blamed the drop in generating levels 
on a disruption of the supply of natural gas to the Egbin power 
station in Lagos State plus seasonal drops in power output from 
hydroelectric power plants. 
 
20. (SBU) GON TO ACCEPT BIDS FOR NATURAL GAS PLANTS:  On April 14, 
an executive with the Nigerian company Global Energy said that his 
was one of fifteen companies that pre-qualified to submit bids to 
build and operate three natural gas central processing facilities 
planned by the Nigerian government under its Gas Master Plan.  The 
list of pre-qualified bidders included several international oil 
companies already operating in Nigeria, plus new entrants GAZPROM, 
E.ON Ruhrgas, Centrica, and Thai, Italian, and Spanish utility 
companies among others.  Global Energy will partner with the 
American company Exterran on its bid.  The Global Energy executive 
expected that construction on the multi-billion dollar projects 
would not start until 2013 at the earliest.  An ExxonMobil official 
told Energyoff that his company did not apply to be one of the 
pre-qualified bidders, but the GON has indicated the company will be 
"allowed" to bid anyway.  The GON is hosting a conference with 
pre-qualified bidders in Abuja in late April to discuss the 
mechanics of the bid process. 
 
21. (SBU) PETROLEUM INDUSTRY BILL LINGERS IN NASS: A senior Nigerian 
National Petroleum Corporation (NNPC) official told Lagos Econoffs 
on April 14 that recent changes in senior company officials were 
routine and not necessarily tied to a planned restructuring of the 
 
ABUJA 00000714  005 OF 005 
 
 
company.  Later however, he said that NNPC chief Mohammed Barkindo 
was being careful not to be seen to be starting reforms before the 
National Assembly had approved implementing legislation.  He 
described the relationship between the Ministry of Petroleum 
Resource/NNPC and the National Assembly as "tense."  He went on to 
say that President Yar'Adua was engaged in getting the Petroleum 
Industry Bill quickly passed by the legislature, but he acknowledged 
that the National Assembly only worked on the bill in spurts, with 
its attention often drawn elsewhere and the bill set aside. 
 
Delta Incidents; No AMCITS Involved 
----------------------------------- 
22. (U) BRITISH CITIZEN TAKEN HOSTAGE:  On April 4, a British 
citizen was abducted from a hotel bar in Port Harcourt.  His body 
guard was killed in the incident.  The hostage is still being held. 
 
23. (U) BOAT ATTACKED AND DESTROYED: According to the media, a 
houseboat used for laying pipelines by Agip contractor DAEWOO 
Nigeria Ltd was attacked and destroyed in the Igbomotoru region of 
Delta State on April 6.  No casualties were reported in the attack. 
 
 
24. (U) JTF REPORTEDLY KILL 14: On April 10, the JTF allegedly 
killed 14 militants by sinking six speed boats on Okilo Creek near 
Igbomotoru River, Bayelsa State. 
 
25. (U) NAVY THWARTS ATTACK ON SHELL FLOW STATION: On April 11, an 
attack on a Shell logistic (flow) station in Nembe Creek region, 
Bayelsa State, was repelled by the Nigerian Navy, according to a JTF 
spokesman and press reports.  At least two naval sailors were 
reported killed and four captured (according to OSAC sources); 
several (2-4 depending on the source) boats, possibly including one 
vessel with off-shore capability, were also seized by the militants. 
 JTF spokesmen claimed the attack was in retaliation for their 
successful operation on April 10 in Igbomotoru. 
 
26. (U) BRITISH HOSTAGE RELEASED:  On April 19, MEND released Robin 
Barry Hughes, one of two British hostages that were kidnapped in the 
Niger Delta on September 9, 2008. MEND issued a statement via email 
citing age and health reasons for the release and added that no 
ransom was collected. 
 
SANDERS