US embassy cable - 01ABUJA2667

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 002667 
 
SIPDIS 
 
 
E.O. 12958: DECL: 10/18/2006 
TAGS: ECON, EFIN, PTER, BEXP, NI 
SUBJECT: NIGERIA: VICE PRESIDENT ON THE GLOBAL COALITION 
AGAINST TERRORISM, MONEY LAUNDERING AND RESTRUCTURING JEPC 
 
REF: (A) STATE 169975 (B) STATE 170551 
 
 
Classified by Ambassador Howard F. Jeter for Reasons 1.5(b) 
and (d). 
 
 
1. (C) Summary.  Ambassador Jeter met October 12 with Vice 
President Atiku Abubakar to discuss tighter money laundering 
controls in Nigeria, the proposed structure for the "son of 
JEPC", the need to increase U.S. investment in Nigeria and 
bilateral trade.  Although offering condolences for the 
September 11 attacks, the Vice President qualified his 
remarks, suggesting the U.S. examine the reasons behind the 
attacks, such as USG policy in the Middle East.  USAID 
Director Tom Hobgood, RNLEO and EconOff (notetaker) also 
attended.  End Summary. 
 
 
2. (U) Beginning the meeting, Ambassador Jeter expressed 
condolences for the victims of the recent violence in Jos. 
The Vice President thanked the Ambassador, characterizing Jos 
as a traditionally "quiet and peaceful" city.  He offered 
Ambassador Jeter condolences over the September 11 attacks, 
adding, "it is unbelievable and sad that the world has become 
violent in this way."  The Vice President expressed grief for 
America, "a country where many Nigerians, including myself, 
have taken refuge," in times of trouble in their own country. 
 Atiku said that he took the attack on the United States very 
personally, feeling it was an attack on him. 
 
 
----------------------------------------- 
Fight Against Terrorism: Money Laundering 
----------------------------------------- 
 
 
3. (U) Although terrorism represents an unprecedented 
challenge, Ambassador Jeter stated the U.S. would remain 
committed to the global fight against terrorism for the long 
haul.  In addition to diplomatic and military responses to 
the threat, the global coalition sought to handcuff the 
criminals by blocking their funding sources.  The Ambassador 
conveyed reftel themes, stressing that Nigeria should move 
quickly to strengthen financial crime controls, particularly 
over money laundering.  Ambassador Jeter suggested the 
Financial Crimes Commission, as proposed by President 
Obasanjo, could play a critical role in coordinating 
intelligence on financial crimes as well as law enforcement 
response.  Ambassador Jeter handed the Vice President a short 
non-paper outlining the steps Nigeria needed to take (as 
suggested Ref B) to be removed from the FATF's NCCT list, the 
first step being to answer the original FATF questionnaire. 
 
 
4. (U) The Vice President promised that Nigeria's performance 
would improve.  The GON would establish a strong central 
body, in the form of the Financial Crimes Commission, and 
enact effective anti-money laundering legislation that would 
have the "required teeth and effectiveness to fight 
terrorism."  Vice President Abubakar said draft legislation 
to create the FCC was pending approval by President Obasanjo 
and the Federal Executive Council before being sent to the 
National Assembly for ratification.  He promised to meet with 
Ministers of Finance and Justice October 15 to ensure the 
FATF questionnaire's completion and transmittal to Paris. 
Ambassador Jeter commented that sending the completed 
questionnaire to the FATF, while important, was only a small 
step towards 'recertification' as a cooperating country.  The 
Vice President offered to send the Embassy the committee's 
draft report "to demonstrate our commitment to move on this 
issue."  Moreover, he said that he would soon send the 
minutes of the Committee's meeting and any proposed 
recommendations to the FATF, as a sign of Nigeria's good 
intentions. 
 
 
5. (C) Ambassador Jeter handed the Vice President copies of 
the U.S. Executive Order and list of 27 prosecuted terrorist 
entities.  The Vice President commented that some Nigerian 
NGOs might have some contact with these entities, but 
promised that Nigerian intelligence would investigate 
possible connections.  The Ambassador asked whether the 
Africa International Bank (formerly the Bank for Commerce and 
Credit International) had ties to Kabul and the Taliban. 
Vice President Abubakar denied any connection between 
Nigerian banks and Afghanistan, except perhaps Habib Bank, he 
said.  The Vice President recalled, however, that Middle 
Eastern businessmen, interested in banking sector 
investments, had visited Nigeria recently.  Some investment 
in the recently privatized United Bank of Africa came from 
the Middle East, he added. 
 
 
-------------------- 
Restructuring JEPC 
-------------------- 
 
 
6. (U) Ambassador Jeter presented the U.S. interagency 
recommendations on U.S. - Nigeria bilateral engagement and 
restructuring the Joint Economic Partnership Committee. 
Three committees would be created: Economic, Law Enforcement, 
and Defense.  Each Committee would establish an agenda and 
objectives, which would then be tasked to working groups for 
action.  If the GON accepted this proposal, Ambassador Jeter 
suggested, the two sides could meet as early as 2002 in 
either the U.S. or Nigeria.  Examples of objectives could 
include creation of a Nigerian Investment Fund, increase in 
non-oil trade, increase in agricultural output and 
self-sufficiency in refined oil products.  The Vice President 
responded that he "already had some different ideas on this." 
 The Embassy should discuss the proposal in detail with his 
staff.  The sooner the better, he stressed.  He wanted 
significant progress by June 2002, before the election period 
in Nigeria begins in earnest. 
 
 
7. (U) Ambassador Jeter asked who would lead this issue for 
the GON.  The Vice President replied that the lead would be 
Chief Economic Advisor Magnus Kpakol with the caveat that, as 
Chairman of the Privatization Council, the Chief Economic 
Advisor reports to the Vice President.  (Comment.  Kpakol's 
predecessor, Philip Asiodu, had a notoriously competitive 
relationship with the Vice President on most economic policy 
issues.  It appears that the Vice President's relationship 
with the new Chief Economic Advisor will be more cooperative. 
 End Comment.) 
 
 
---------------------------------- 
Bilateral Commercial Relationship 
---------------------------------- 
 
 
8. (U) Ambassador Jeter suggested that the Economic Committee 
could provide a structure in which the two countries could 
tackle bilateral trade issues.  In meetings with the 
Corporate Council on Africa in September, the Ambassador 
witnessed skepticism amongst U.S. companies in respect of 
Nigeria's non-oil sector.  Ambassador Jeter commented that, 
to attract U.S. companies into Nigeria's non-oil sectors, 
they must first see some non-oil success stories.  The Vice 
President agreed a major breakthrough would be achieved if 
this were done.  He felt there had been a slight increase in 
interest from U.S. companies.  More companies had requested 
meetings with him.  However, the Vice President averred, 
these companies appeared unfamiliar with Nigeria and needed 
enticements and encouragement from the GON.  Vice President 
Abubakar asserted U.S. companies should bring their proposals 
directly to him -- before problems arise, not afterward.  He 
explained that by the time a company encounters an obstacle, 
it was often too late for him to intervene because of 
political sensitivities, i.e., it could embarrass the 
Minister involved. 
 
 
------------------- 
Domestic Security 
------------------- 
 
 
9. (C) The Ambassador asked the Vice President for his 
assessment of the current security situation in light of 
occasional statements by Nigerian Muslim clerics that appear 
sympathetic to Osama bin-Laden.  The Vice President replied 
that there were no signs of terrorists operating in Nigeria. 
However, he added, all GON security agencies were on 
heightened alert, anticipating that GON response time to any 
situation would be swift.  Although Africa should not be 
regarded as a danger zone by the global coalition against 
terrorism, all African nations should be on high alert in 
case terrorists begin to migrate here, he advised. 
 
 
10. (C) Ambassador Jeter emphasized the serious threat the 
world was now facing, pointing to a long string of attacks on 
U.S. interests from the East Africa Embassy and USS Cole 
bombings to the more recent WTC attacks.  The Vice President 
suggested that America ask why this was happening, "what is 
America doing?", he asked.  Ambassador Jeter replied that 
while many Americans asked these questions, grievances 
against the U.S. should be discussed and negotiated, not used 
to senselessly slaughter innocent people.  The Vice President 
agreed the attacks were inexcusable, but offered it was "high 
time the U.S. look at the question of why it (terrorist 
attacks) always comes from the Middle East."  He referred to 
comments by CNN correspondent Lou Dobbs who suggested the USG 
had been insensitive to Middle East problems and must now 
harmonize its views with the rest of the world.  Ambassador 
Jeter again reiterated that these attacks were instruments of 
terror that, next time, might strike outside the United 
States.  Vice President Abubakar agreed it was a global 
problem; Nigeria was committed to preventing these atrocities 
from recurring and was "determined to keep Nigeria safe for 
everyone." 
Jeter