• Chinese president meets Chinese, Nigerian businessmen

China and Nigeria have endorsed series of agreements in a bid to expand growing bilateral ties. Chinese President Hu Jintao's in on a state visit to Nigeria.
Visiting Chinese President Hu Jintao and his Nigerian host Olusegun Obasanjo have signed a memorandum on petroleum cooperation. The deal provides for substantial Chinese investment in the Nigerian oil industry.
Nigeria, Africa's leading oil producer, has granted China four drilling licenses in exchange for commitments to invest $4 billion in oil and infrastructure projects.
Chinese offshore firm CNOOC has also concluded a $2.7 billion deal to buy a 45 percent share in a Nigerian oil field.
With Chinese oil consumption expected to rise about 400,000 barrels per day within the year, Mr. Hu's Nigerian tour is seen as an attempt to secure enough oil to meet China' surging energy demands.
Nigerian House of Representatives Committee on Foreign Affairs chairman Usman Bugaje is absolutely delighted with the Chinese interest in Nigeria.
"China is a growing economy, in fact the fastest in the world and clearly the kind of things that China has to offer, I do not think anybody in the world can ignore," he said. "And the kind of things China requires from us are the kind of things we have in substantial quantity and one that will definitely help the growth of our own energy sector and any other sector that China might be interested. I mean, I have in mind here not only oil, but agriculture. These are some of the areas, so it a very good thing for us."
The two leaders also signed six other agreements to consolidate what has been characterized as a strategic partnership. China has invested substantially in various sectors of the Nigerian economy in the past few years, particularly in telecommunications, petroleum, agriculture, and building infrastructure.
A large Chinese business delegation is visiting Nigeria to explore more investment opportunities. Bugaje welcomes the prospect of a new economic relationship that recognizes Africa's peculiar circumstance.
"We have a relationship with the West that is essentially colonial," he said. "Even after independence, this relationship did not substantial change. We still do not participate in fixing the prices of the primary commodities that we sell. We are still treated very much like colonies in terms of our trade relationship. All these things are bound to change. Because if we have an alternative in China and indeed it is a promising alternative, then the West stands to lose out and that means there will be competition now for products from the African continent."
President Hu addressed a joint session of the national assembly and will also meet with business leaders before flying on to Kenya.
Document VOA0000020060427e24r00031

M.E.N.D. Escalates Instability
1,154 words

27 April 2006

01:44 PM

All Africa

AFNWS

English

(c) 2006 AllAfrica, All Rights Reserved
Apr 27, 2006 (Power and Interest News Report/All Africa Global Media via COMTEX) --
Security conditions in Nigeria show no sign of improvement. A new Ijaw tribe militant group in the Niger Delta, the Movement for the Emancipation of the Niger Delta (M.E.N.D.), is tallying up the number of successful attacks against government security forces and multinational oil companies.
M.E.N.D. is a shadowy organization that first came to prominence on January 11, 2006 when it kidnapped oil workers based at Royal Dutch Shell's offshore EA oil rig. While the workers were released, M.E.N.D. has proven to be a capable, armed organization. For instance, since January, M.E.N.D. has killed at least 24 soldiers and police, kidnapped 13 oil workers and caused severe damage to several critical oil pipelines.
One of M.E.N.D.'s most recent attacks occurred on April 19 in the oil city of Port Harcourt in the Niger Delta. The organization detonated a car bomb at the Bori Camp military base, killing two people. After the attack, M.E.N.D. released an e-mail statement cautioning that the incident "serves as a further warning to the Nigerian military, oil companies and those who are attempting to sell the birthright of the Niger Delta peoples for a bowl of porridge. In the coming weeks, we will carry out similar attacks against relevant oil industry targets and individuals."
M.E.N.D.'s sudden rise comes directly after a reduction in attacks from the Niger Delta's most prominent Ijaw militant group, the Niger Delta People's Volunteer Force (N.D.P.V.F.). After the N.D.P.V.F.'s leader, Mujahid Dokubo-Asari, was arrested on charges of treason on September 20, 2005, he called on his supporters to cease hostilities; this was an effort on his part to portray his organization as non-violent so the government would have difficulty prosecuting him. Since his call for an end to hostilities, the N.D.P.V.F. remained uncharacteristically silent, and now M.E.N.D. has stolen the spotlight.
M.E.N.D.'s motivations for fighting appear to be the same as N.D.P.V.F., and M.E.N.D. has called for the release of Dokubo-Asari. It is quite possible that after N.D.P.V.F.'s ceasefire, militants from the organization founded, or greatly assisted, M.E.N.D. in an effort to continue attacks against the government and multinational security forces; this strategy would have the benefit of avoiding implicating N.D.P.V.F. and Dokubo-Asari in the renewed violence. While this is a possibility, M.E.N.D. may indeed be a new organization as there is no lack of Ijaw militant groups willing to use violence to achieve their interests. Indeed, in recent days, even the N.D.P.V.F. appears to be taking up arms once again; N.D.P.V.F. spokesman Colonel Sunny Tari announced the start of Operation Isaac Boro, an armed offensive, saying that N.D.P.V.F. would work with other Ijaw militant groups in achieving their joint objectives.
Factors Behind Instability
The attacks by Ijaw militants will continue for the foreseeable future. This is possible because the Ijaw militants have a strong support base within the Niger Delta. Despite the fact that 95 percent of Nigeria's foreign exchange is earned from oil exports, and that the majority of this oil is pumped out of the Niger Delta, the delta's inhabitants live in poverty, many without electricity or running water. The Ijaw make up the bulk of the population in the delta, and while many do not agree with using violence in order to achieve their objectives, they at least sympathize with the cause of the tribal militants.
Nigerian President Olusegun Obasanjo recently made an effort to redress some of these grievances, announcing on April 19 a nine-point development plan that would create 20,000 jobs in the Niger Delta area; the plan aims for improvements in transportation, employment generation, education, environment, health, power and water resources, agriculture and telecommunications. M.E.N.D. quickly rejected the plan, stating, "We wish to restate our warnings to oil companies still operating in the Niger Delta, and more especially workers for such companies, to leave while they can. ... At a time of our choosing we will resume attacks with greater devastation and no compassion on those who choose to disregard our warnings."
In addition to this ongoing instability, Nigeria faces elections in 2007. As part of the country's 1999 constitution, which came after 15 years of military rule, Obasanjo must step down since he is currently serving out his second term. His People's Democratic Party, however, is attempting to make changes to the constitution to allow Obasanjo to run for a third term. This has caused anger with some members of the party, such as Vice President Atiku Abubakar who plans to run in the 2007 elections. More importantly, it is threatening instability in the primarily-Muslim north of the country. On April 24, for instance, Obasanjo was traveling through the northern city of Kano when supporters of the city's Islamist state governor, Ibrahim Shekarau, and his All Nigeria People's Party rained stones upon the convoy. Nigeria has faced inter-religious rioting in the past, and this issue threatens to exacerbate that tension.
The Bottom Line
These factors demonstrate why instability will continue in Nigeria, primarily in the country's Niger Delta region. The frequent instability has already cut Nigeria's oil exports down about 20 percent; on April 25, for example, ExxonMobil announced that it evacuated non-essential staff from Nigeria's Qua Iboe oil facility, the country's largest export terminal, over concerns that an attack was imminent.
Nevertheless, oil companies are familiar with working in unstable environments. An April 26 report in the Financial Times revealed that Royal Dutch Shell had subcontracted work to companies operated by Niger Delta militants in an attempt to placate these aggrieved groups, and to prevent them from attacking their facilities in the future.
Furthermore, Nigeria's oil instability has not prevented China from expanding its energy investments in Nigeria. In April, China National Offshore Oil Corporation announced that it signed a US$2.7 billion agreement for a 45 percent stake in a Nigerian oil block. According to recent media reports, China National Petroleum Corporation was also just offered four oil exploration blocks in Nigeria as part of a deal that would bring some $4 billion in Chinese repairs and infrastructure projects to Nigeria.
Expect Ijaw militants to continue, and probably escalate, their attacks against government and multinational interests, and watch as energy companies, and government security forces, struggle to adapt to this pervasive threat.
Document AFNWS00020060427e24r001rx

Nigeria, China to Boost Strategic Partnership
389 words

27 April 2006

12:32 PM

All Africa

AFNWS

English

(c) 2006 AllAfrica, All Rights Reserved
Abuja, Apr 27, 2006 (Nigeria First/All Africa Global Media via COMTEX) --
Nigeria and China have agreed to strengthen bilateral cooperation in the areas of agriculture, power generation, energy, infrastructural development, telecommunications and human resources development.
According to an official communique issued in Abuja on April 27 at the end of President Hu Jintao's visit to Nigeria, the Chinese leader and his host, President Olusegun Obasanjo shared the view that Nigeria and China had great potentials and broad prospects for greater economic cooperation.
The Federal Government and the Chinese Government will therefore continue to create favourable conditions to facilitate increased bilateral trade and investment while encouraging entrepreneurs and investors from both countries to increase bilateral exchanges and expand areas of cooperation.
Nigeria and China also expressed their readiness to "work in the spirit of their existing strategic partnership to step up cooperation in international affairs, uphold the rights and interests of developing countries, promote world peace and development, and foster a harmonious world of durable peace and common prosperity".
President Hu Jintao and his delegation expressed their appreciation of Nigeria's efforts to maintain regional peace and promote African integration.
The Chinese leader had at bilateral talks with Nigerian Government officials led by President Obasanjo yesterday announced fresh Chinese aid to Nigeria of 46 Million Yuan. The aid is to be used for the implementation of projects that will be agreed by the two governments as well as for the provision of anti-malarial medicines to Nigeria and the training of Nigerian health personnel on malaria control and prevention.
President Jintao also announced the provision by the Chinese Government of new export credit to Nigeria for infrastructural development.
President Obasanjo expressed the Federal Government's appreciation of the export credit, saying that his Administration will do everything possible to utilize it effectively for the rapid development of rail transportation in Nigeria and power generation, among other things.
The President also thanked his Chinese counterpart for the 46 Million Yuan additional aid to Nigeria.
He recalled that on his earlier state visit to China, an agreement was reached to develop "strategic relations and partnerships between Nigeria and China".
"On both sides, we have done everything possible to actualize that agreement. This visit is bound to deepen and strengthen our relationship," President Obasanjo remarked.
Document AFNWS00020060427e24r001e5

Govt, China Sign Bilateral Agreements
371 words

27 April 2006

12:32 PM

All Africa

AFNWS

English

(c) 2006 AllAfrica, All Rights Reserved
Abuja, Apr 27, 2006 (Nigeria First/All Africa Global Media via COMTEX) --
President Olusegun Obasanjo and his Chinese counterpart Mr. Hu Jintao on April 26 signed a number of bilateral agreement aimed at deepening and developing a new strategic partnership with Nigeria.
President Obasanjo and Mr. HU signed economic and technical co-operation, which include a grant of about N700 million (40 million Yuan), five million Yuan for anti-malaria medicine, training course for comprehensive malaria prevention and control by China and another one million Yuan for training of medical staff for Nigeria.
The two nations also signed a Memorandum of Understanding (MoU) for the National Information Technology of Nigeria with Uwaei Technologies of China and petroleum co-operation for the Ministry of Petroleum Resources and the China National Petroleum Co-operation.
President Hu said his visit to Nigeria is aimed at deepening the traditional relationship between our two countries, expanding our mutually beneficial co-operation and promoting further development of our strategic partnership.
He noted the expanding co-operation in the areas of agriculture, energy, power generation, infrastructure development and satellite, which has achieved obvious progress. He said China is looking forward to launching a Nigerian satellite to space at an acceptable time next year.
President Hu enumerated other areas that would further develop strategic partnership with Nigeria to include:
-to strengthen our political mutual trust bearing in mind the objectives of deepening the strategic co-operation;
-to maintain sound momentum of high level exchanges and visits;
-to strengthen our dialogue and exchanges with each other at all levels;
-co-ordinate our positions for our mutual interests;
-co-operate in new areas for mutual beneficial
"win-win" situations; and
-strengthening co-operation in the areas of agriculture, energy, power generation, telecommunications, infrastructural development and satellite.
The bilateral discussion between the two leaders reaffirms the earlier grant of four oil blocs to China by Nigeria with two located Niger Delta and another two on Nigeria's side of the Lake Chad Basin. China is also to take over the Kaduna Refinery and build a power generating plant in the country.
President Hu is to address a joint session of the National Assembly on 27 April 2006.
Document AFNWS00020060427e24r001e4

DJ Pres Hu Tells Nigeria That China Seeks Closer Africa Ties
685 words

27 April 2006

10:20 AM

Dow Jones Commodities Service

OSTDJ

English

Copyright 2006, Comtex News Network. All Rights Reserved.
ABUJA, Nigeria, Apr 27, 2006 (DJCS via Comtex) --
China President Hu Jintao said Thursday his government will seek closer ties with Africa - a resource-rich frontier of opportunity for the world's fastest-growing economy - after signing oil and other agreements with Nigeria.
Hu, on the second and final day of his visit to the West African nation, said China is seeking "a strategic partnership" with the continent that would improve living standards for Africa.
China's growing profile has worried Western rivals, and some Africans have complained about being flooded with cheap Chinese goods.
Nigeria is the top African producer of crude and the seventh-largest in the world, normally pumping 2.5 million barrels a day, and was the first sub-Saharan Africa stop on Hu's tour that has included the U.S., Saudi Arabia and Morocco.
Militants claiming responsibility for oil-installation attacks and kidnappings that have shut down more than 20% of Nigeria's oil production this year vowed more violence in response to the Chinese deals.
"They should go back to China and do all these things they say for the millions of starving Chinese. We want control over our resources, not Chinese management and development of the Niger Delta," the Movement for the Emancipation of the Niger Delta said in an email.
Hu and his Nigerian counterpart Olusegun Obasanjo signed an agreement Wednesday that requires Nigeria's Petroleum Ministry to give state-run China National Petroleum Corp. (CNPC.YY) preferential access to oil blocks in return for a Chinese undertaking to take over a loss-making refinery in the northern city of Kaduna.
China's economic growth hit 10.2% in the first quarter, and the nation is hungry for the energy, timber, minerals and other raw materials Africa can provide.
In January, China's state-controlled oil company CNOOC Ltd. (0883.HK) announced it had reached a deal to pay $2.3 billion for a 45% stake in a Nigerian offshore oil field.
In other deals signed Wednesday, Chinese companies will build a hydroelectric power station in the northeastern Mambilla plateau and a rail system linking the Nigerian capital Abuja with its economic capital Lagos.
Two Chinese telecommunication companies, Huawei Technologies Co. (HWI.YY) and ZTE Corp. (000063.SZ), will execute large contracts for rural telephone service across Nigeria with the help of concessionary loans from the Chinese government, valued at more than $200 million.
Obasanjo's office released a statement as Hu wrapped up his visit Thursday saying China had granted Nigeria 46 million yuan ($5.7 million) in aid to be used in part to buy anti-malaria medicines and to train Nigerians in malaria control and prevention. The statement said China also granted Nigeria a new export credit for infrastructure development.
With 130 million people, Nigeria is also a major market for Chinese-produced goods. But Chinese companies have been accused of flooding local markets with fake and substandard goods, notably textiles. In December, Nigerian officials took the dramatic step of shutting down several shopping centers run by Chinese traders in Lagos.
In the last five years, China's trade with Africa has grown fourfold to $40 billion in 2005.
The world's most populous country, with 1.3 billion people, has also set new development targets to increase its gross domestic product and lower energy consumption, the Chinese leader told Nigerian lawmakers Thursday.
"By the year 2020...GDP would quadruple that of 2000 to reach $4 trillion, averaging $3,000 per head," Hu said.
China's growth has sparked a global race with the West for markets and industrial resources. Africa has become a frontier of opportunity for the world's most populous country and its fastest-growing economy.
That has meant opportunity, aid and even key diplomatic support - China is a veto-wielding U.N. Security Council member - to some governments shunned by the West, like Sudan and Zimbabwe.
Hu is scheduled to head in a few days to Kenya, in East Africa.
(END) Dow Jones Newswires
04-27-06 1420ET
Document OSTDJ00020060427e24r003kb

Pres Hu Tells Nigeria That China Seeks Closer Africa Ties
675 words

27 April 2006

02:20 PM

Dow Jones International News

DJI

English

(c) 2006 Dow Jones & Company, Inc.
ABUJA, Nigeria (AP)--China President Hu Jintao said Thursday his government will seek closer ties with Africa - a resource-rich frontier of opportunity for the world's fastest-growing economy - after signing oil and other agreements with Nigeria.
Hu, on the second and final day of his visit to the West African nation, said China is seeking "a strategic partnership" with the continent that would improve living standards for Africa.
China's growing profile has worried Western rivals, and some Africans have complained about being flooded with cheap Chinese goods.
Nigeria is the top African producer of crude and the seventh-largest in the world, normally pumping 2.5 million barrels a day, and was the first sub-Saharan Africa stop on Hu's tour that has included the U.S., Saudi Arabia and Morocco.
Militants claiming responsibility for oil-installation attacks and kidnappings that have shut down more than 20% of Nigeria's oil production this year vowed more violence in response to the Chinese deals.
"They should go back to China and do all these things they say for the millions of starving Chinese. We want control over our resources, not Chinese management and development of the Niger Delta," the Movement for the Emancipation of the Niger Delta said in an email.
Hu and his Nigerian counterpart Olusegun Obasanjo signed an agreement Wednesday that requires Nigeria's Petroleum Ministry to give state-run China National Petroleum Corp. (CNPC.YY) preferential access to oil blocks in return for a Chinese undertaking to take over a loss-making refinery in the northern city of Kaduna.
China's economic growth hit 10.2% in the first quarter, and the nation is hungry for the energy, timber, minerals and other raw materials Africa can provide.
In January, China's state-controlled oil company CNOOC Ltd. (0883.HK) announced it had reached a deal to pay $2.3 billion for a 45% stake in a Nigerian offshore oil field.
In other deals signed Wednesday, Chinese companies will build a hydroelectric power station in the northeastern Mambilla plateau and a rail system linking the Nigerian capital Abuja with its economic capital Lagos.
Two Chinese telecommunication companies, Huawei Technologies Co. (HWI.YY) and ZTE Corp. (000063.SZ), will execute large contracts for rural telephone service across Nigeria with the help of concessionary loans from the Chinese government, valued at more than $200 million.
Obasanjo's office released a statement as Hu wrapped up his visit Thursday saying China had granted Nigeria 46 million yuan ($5.7 million) in aid to be used in part to buy anti-malaria medicines and to train Nigerians in malaria control and prevention. The statement said China also granted Nigeria a new export credit for infrastructure development.
With 130 million people, Nigeria is also a major market for Chinese-produced goods. But Chinese companies have been accused of flooding local markets with fake and substandard goods, notably textiles. In December, Nigerian officials took the dramatic step of shutting down several shopping centers run by Chinese traders in Lagos.
In the last five years, China's trade with Africa has grown fourfold to $40 billion in 2005.
The world's most populous country, with 1.3 billion people, has also set new development targets to increase its gross domestic product and lower energy consumption, the Chinese leader told Nigerian lawmakers Thursday.
"By the year 2020...GDP would quadruple that of 2000 to reach $4 trillion, averaging $3,000 per head," Hu said.
China's growth has sparked a global race with the West for markets and industrial resources. Africa has become a frontier of opportunity for the world's most populous country and its fastest-growing economy.
That has meant opportunity, aid and even key diplomatic support - China is a veto-wielding U.N. Security Council member - to some governments shunned by the West, like Sudan and Zimbabwe.
Hu is scheduled to head in a few days to Kenya, in East Africa. [ 27-04-06 1820GMT ]
Document DJI0000020060427e24r001j0
China to increase African co-operation
667 words

27 April 2006

01:52 PM

The Irish Examiner

IRISEX

English

© Irish Examiner, 2006. Thomas Crosbie Media, TCH
Chinese President Hu Jintao said today his government will seek closer ties with resource-rich Africa, after signing oil and other agreements with Nigeria and granting the West African giant an aid package.
Hu, on the second and final day of his visit to Nigeria, addressed the country’s parliament on China’s relations with Africa.
"Africa has rich resources and market potentials, whereas China has available effective practices and practical know-how it has gained in the course of modernisation," Hu said.
China is seeking "a strategic partnership" with the continent that would be mutually beneficial and result in improved living standards for Africa, he said.
China’s interest and growing profile has worried Western rivals – among them countries who may feel their colonial ties should give them an advantage – for Africa’s resources and markets. And some Africans have complained about being flooded with cheap Chinese goods.
"China’s development will not pose a threat to anyone. On the contrary, it will bring more development opportunities to the world," Hu told Nigeria’s parliament.
The world’s most populous country, with 1.3 billion people, has also set new development targets to increase its gross domestic product and lower energy consumption, the Chinese leader said.
"By the year 2020 ... GDP would quadruple that of 2000 to reach four trillion dollars, averaging 3,000 dollars per head," Hu said.
China’s economy is growing so fast, its leaders have taken steps to avoid inflation or ballooning bad loans. Growth hit 10.2% in the first quarter, and China is hungry for the energy, timber, minerals and other raw materials Africa can provide.
During the first day of the visit, Hu and his Nigerian counterpart Olusegun Obasanjo presided over the signing of a string of agreements covering co-operation in energy, telecommunications, infrastructure development and health.
"From our assessment this is the century of China to lead the world," Obasanjo said at a banquet for the Chinese leader yesterday. "And when you’re leading the world we want to be very close behind you."
Obasanjo’s office released a statement as Hu wrapped up his visit today saying China had granted Nigeria 46 million yuan in aid to be used in part to buy anti-malaria medicines and to train Nigerians in malaria control and prevention. The statement said China also granted Nigeria a new export credit for infrastructure development.
Hu told Nigerian politicians that China will back African Union efforts to end conflicts across the continent.
Obasanjo had welcomed Hu at the airport yesterday in the capital, Abuja, where the Chinese leader’s plane landed in a first sub-Saharan Africa stop in a tour that has included the US, Saudi Arabia and Morocco.
Nigeria is the top African producer of crude and the seventh largest in the world, normally pumping 2.5 million barrels per day.
In January, China’s state-controlled oil firm CNOOC announced it had reached a deal to pay 2.3 billion dollars for a 45% stake in a Nigerian offshore oil field.
With 130 million people, Nigeria is also a major market for Chinese-produced goods. But Chinese companies have been accused of flooding local markets with fake and substandard goods, notably textiles. In December, Nigerian officials took the dramatic step of shutting down several shopping centres run by Chinese traders in the commercial capital, Lagos.
In the last five years, China’s trade with Africa has grown fourfold to 40 billion dollars in 2005.
China’s growth has sparked a global race with the West for markets and industrial resources. Africa has become a frontier of opportunity for the world’s most populous country and its fastest growing economy.
That has meant opportunity, aid and even key diplomatic support – China is a veto-wielding UN Security Council member – to some governments shunned by the West, like Sudan and Zimbabwe. Hu is scheduled to head in a few days to Kenya, in East Africa.
Document IRISEX0020060427e24r002e5

China, Nigeria sign big deals as Beijing pledges higher profile in Africa
By DULUE MBACHU

Associated Press Writer

606 words

27 April 2006

03:16 PM

Associated Press Newswires

APRS

English

(c) 2006. The Associated Press. All Rights Reserved.
ABUJA, Nigeria (AP) - Chinese President Hu Jintao said Thursday his government will seek closer ties with Africa -- a resource-rich frontier for the world's fastest growing economy -- after signing a series of major business deals with oil-rich Nigeria.
Hu, on the second and final day visiting Africa's largest oil producer before heading to Kenya, said China is seeking "a strategic partnership" with the continent that would improve living standards for Africa.
Hu and Nigerian President Olusegun Obasanjo signed an agreement Wednesday that requires Nigeria's petroleum ministry to give China's state oil firm preferential access to four blocks of oil exploration rights in return for China taking over a money-losing refinery in the northern city of Kaduna.
China also agreed to build a hydroelectric power station in the northeastern Mambilla plateau and a fast-rail system linking the capital, Abuja, with the economic capital, Lagos.
And two Chinese telecommunication firms will install rural telephone service across large swathes of Nigeria with the help of Chinese government loans worth more than $200 million.
China's interest and growing profile in Africa has worried Western rivals for the continent's resources and markets. And some Africans have complained about being flooded with cheap Chinese goods.