US embassy cable - 03ABUJA631

UNCLAS ABUJA 000631 
 
SIPDIS 
 
 
STATE PASS EX-IM 
 
 
E.O. 12958: N/A 
TAGS: EFIN, ECON, PREL, NI 
SUBJECT: NIGERIA: REQUEST FOR AUTHORITY TO SIGN BILATERAL 
DEBT AGREEMENT 
 
REF: DKRZYWDA/DEPSTEIN EMAILS 03/09/03 
 
 
1. Head of the GON Debt Management Office Legal Division J.O. 
Jiya wrote Econcouns on March 6, stating the GON is ready to 
sign the bilateral debt rescheduling agreement. Post 
forwarded a copy of the latest agreement, prepared in 2001, 
to Treasury and State on March 9 (reftel). Because of the 
significant time lapse since the agreement was first 
negotiated, we understand revisions will be required to ready 
the agreement for signature. 
 
 
2. Jiya told Econoff on April 2 that the agreement had been 
delayed within the GON due to a cumbersome approval process 
that culminated in a Federal Executive Council (FEC) decision 
in February to move forward. Jiya added the FEC had recently 
approved a $5.8 billion agreement with the United 
Kingdom--that agreement was signed March 9. She said the GON 
was eager to conclude agreements with all Paris Club 
creditors now. Elections are just around the corner, and 
there is no guarantee that a new FEC under a new government 
would move quickly, Jiya told Econoff. 
 
 
3. Comment. Attempts to extract better terms from 
creditors--especially the United Kingdom--contributed to the 
delay as much, if not more than, the approval process. Now, 
with elections around the corner, the Obasanjo Administration 
is probably anxious to demonstrate to the public that it is 
in serious dialogue with its creditors. In other words, now 
is perhaps the best time to respond to the GON's readiness if 
we still want the agreement. 
 
 
4. Post understands that due to health concerns, Adamu 
Ciroma--who would likely sign the agreement on behalf of the 
GON--will not stay on as Finance Minister even if Obasanjo is 
re-elected. Whoever wins the election, the new Finance 
Minister and other FEC members may seek to review the 
agreement before signing. Post recommends that we take 
advantage of this window of opportunity and sign an updated 
agreement, as soon as possible, perhaps even on the sidelines 
of upcoming IMF/WB meetings in Washington. Post is working to 
determine whether Central Bank Governor Sanusi, who will lead 
the GON delegation, could sign the agreement. Regardless of 
who signs it, the DMO requests the opportunity to review the 
technical revisions now being made by Washington agencies. 
End Comment. 
JETER