US embassy cable - 03ABUJA943

UNCLAS ABUJA 000943 
 
SIPDIS 
 
 
USDA FAS WASHDC FOR RON CROUSHORN EXPORT CREDITS 
FAA/AME/PHOFFMAN 
 
 
FROM AMBASSADOR JETER AND AGATTACHE, LAGOS 
 
 
E.O. 12958, N/A 
TAGS: EAGR, EAID, PREL, NI 
SUBJECT: NIGERIA: FOOD FOR PROGRESS PROPOSAL 
 
 
REF: TOFAS 013 DATED AUGUST 22, 2002 
 
 
1. Action Request; Para two 
 
 
2.  The American Embassy in Nigeria requests 
Washington reconsideration of our proposed government- 
to-government "Food for Progress" activity.  This 
proposal, presented by President Olusegun Obasanjo, 
requests an allocation of 12,500 MT of rice to 
implement the Women's Initiative for Sex Education and 
Empowerment (WISE) in Nigeria.  We believe the sale of 
this donated rice will be not only beneficial in terms 
of the targeted audience of the WISE project but also 
will complement other objectives of our Mission 
Program Plan. 
 
 
3.  The Mission has several programs in place that 
focus on health.  However, due to the very high 
incidence of HIV/AIDS in Nigeria, as well as the lack 
of direct support to vulnerable young women, we 
believe this program will be especially beneficial in 
central Nigeria.  Abuja, Nigeria's new capital city, 
for example, has one of the highest incidences of 
HIV/AIDS in the country. 
 
 
4.  President Obasanjo has a very keen interest in 
this program.  On numerous occasions, he has asked me 
as well as the AfriCare representative for information 
about the status of the proposal. 
 
 
5.  Approval of this program may help provide 
Nigeria's private sector as well as the Mission with 
leverage in other areas.  For example, several rice 
processors/importers are currently seeking a five 
percent duty on imported paddy rice.  However, most of 
the rice imported is parboiled rice from India and 
Thailand which is subject to a duty of 100 percent. 
The U.S. would be able to supply a greater share of 
the market if the GON were to agree to support this 
private sector proposal for a two-tiered duty for 
rice. 
 
 
6.  The GON is increasingly using protectionist 
measures such as import bans to support local 
agriculture/agro-processing. Realistically, Nigeria 
cannot become self-sufficient in most product areas 
due to insufficient infrastructure and credit, high 
cost of inputs, etc.  USG support in the form of 
government-to-government food aid, may encourage the 
GON to rely on methods to support the agriculture 
sector. 
 
 
7.  We understand this proposal was considered under a 
competitive process.  However, given the Mission's 
strong support for this initiative, we hope funding 
can be found to move the project forward. 
 
 
JETER