(Archived Content)
FROM THE OFFICE OF PUBLIC AFFAIRS
JS-1458
During frank and very constructive discussions in Washington, D.C. on April 21, 2004, representatives of the Federal Republic of Nigeria and the United States of America identified key areas of cooperation to bolster Nigeria's ambitious reform agenda. They recognized the initiatives introduced by the Government of Nigeria during the past year and stressed the importance of implementing the agenda with full participation from every sector of Nigerian society.
Secretary of the Treasury John W. Snow led the United States delegation.
Minister of Finance Dr. Ngozi Okonjo-Iweala led the delegation of the Federal Republic of Nigeria. Each stressed the importance of the close friendship and cooperation between Nigeria and the United States. They noted the shared interest in supporting sound economic policies to promote democracy and security in Nigeria and the West African region. The Nigerian delegation thanked the United States for its continuing support towards the consolidation of democracy and economic reform in Nigeria.
The U.S. and Nigeria delegations agreed on the importance of Nigeria's efforts to diversify its economy, stimulate private sector-led growth, implement sound macroeconomic fundamentals and fiscal responsibility, as well as create strong a social sector. The National Economic Empowerment and Development Strategy (NEEDS) and its three strategic pillars -- reforming government institutions, growing the private sector, and a social charter -- was recognized as the key roadmap for Nigeria's reform program. The delegations agreed on the urgency of addressing the HIV/AIDS epidemic which constitutes a major threat to productivity and the economy, as well as a serious budgetary burden.
The U.S. reiterated its commitment to Nigeria's reform program and reaffirmed its willingness to support genuine measurable progress. The U.S. praised Nigeria's bold efforts to deregulate the petroleum sector and promote increased power and natural gas development. Nigeria's movement to a Dutch Auction system was noted and adoption of a wholesale foreign exchange market was encouraged. Both parties highlighted significant areas of ongoing cooperation, including combating the spread of HIV/AIDS, strengthening the rule of law, and promoting efficient and transparent economic management.
Both sides stressed the importance of transparency in all levels of the budget process and commended the crucial reforms already undertaken in the areas of budgeting, procurement, and oil and gas revenue management. The United State Government, as host of the Group of Eight (G-8) Industrialized Countries in 2004, welcomed the Government of Nigeria's intention to partner with the G-8 in a pilot program to enhance transparency and accountability in the areas of budget administration, procurement and concession-letting. Nigeria agreed to develop a draft statement of its intent to take action in cooperation with G-8 partners for our joint consideration. This draft statement will form the basis for the compact agreement between Nigeria and the G-8 partners and for a Technical Plan of Action setting forth our mutual goals and efforts
The U.S. delegation described the challenges facing the U.S.-Nigeria commercial relationship, including the imposition of import bans and other tariff and non-tariff barriers. U.S. representatives raised concern about restrictive trade policies. The Nigerian delegation explained that such restrictions are small as a percentage of overall trade and are transitional in nature.
The delegations discussed ways that Nigeria can reach its full economic potential through diversification, joint ventures, and an improved investment climate. The delegations agreed on the benefits of seeking additional export opportunities under the African Growth and Opportunity Act (AGOA). The Nigerian delegation noted Nigeria's need for resources to publicize the benefits of AGOA to its business community, as well as to build capacity for exploiting these benefits. The U.S. delegation underscored the importance of enhancing trade opportunities through the World Trade Organization and expressed interest in Nigeria's cooperation.
The U.S. commended the Government of Nigeria for the focus on agricultural development in its development strategy. Both sides recognized the importance of adding value to primary agricultural products, promoting private sector-led leadership in agricultural inputs, developing infrastructure and creating a stable policy environment. These elements are critical to accelerating agricultural production and increasing incomes for small-scale farmers. The Nigerians stressed the continued commitment of the Obasanjo government to the development of Nigeria's agricultural sector, as demonstrated by the formulation of a new agricultural policy and implementation of the National Special Program on Food Security, as well as the Presidential Initiative on basic agricultural commodities.