US embassy cable - 02ABUJA1675

C O N F I D E N T I A L ABUJA 001675 
 
SIPDIS 
 
 
KAMPALA FOR AID - DAWN LIBERI; RIYADH FOR POL - R. 
HANKS 
 
 
E.O.12958: DECL: 5/23/12 
TAGS: PREL, PGOV, EINV, ETRD, BTIO, NI 
SUBJECT: NIGERIA: OBASANJO NOT WILLING TO OVERTURN 
TARIFF -- PROCTOR AND GAMBLE 
 
 
REF: ABUJA 1594 
 
 
CLASSIFIED BY CHARGE TIM ANDREWS. REASON 1.5 (B) AND 
(D). 
 
 
1. (C) During a late evening May 18 conversation with 
Ambassador Jeter (rest of meeting reported reftel), 
President Obasanjo remarked that he would not reverse 
the decision raising the tariffs on detergent, 
including Proctor and Gamble's Ariel brand. While 
wanting to encourage Proctor and Gamble (P&G) to 
invest heavily in Nigeria, he would not tilt the 
economic playing field in the company's favor, he 
stated. 
 
 
2. (C) Ambassador Jeter explained that P&G wanted to 
invest but the only way the investment was feasible 
would be if P&G made a profit from their Ibadan 
operation. By decimating Ariel's price 
competitiveness, the tariff would reduce sales and 
profits, thus rendering the company's investment plan 
unworkable. Obasanjo responded that he could not show 
favoritism to P&G just because it was an American 
company. That was not the free market and fair 
competition, he quipped. Other detergent manufacturers 
faced the same situation but had built production 
facilities here. Lifting the tariff would unfairly 
penalize these companies, something Obasanjo said he 
was not prepared to do. Despite his opposition to 
Proctor and Gamble's position, Obasanjo stated that he 
would be willing to talk to Proctor and Gamble 
officials when he visited Washington in mid-June. 
Andrews