The Hindu : International : Nigerian strike fuels price fears

Online edition of India's National Newspaper
Friday, Oct 15, 2004

International

International

Nigerian strike fuels price fears

By Rory Carroll

ABUJA, OCT. 14. Trade unions in Nigeria yesterday threatened to extend a three-day general strike which has shut down much of the country and driven world oil prices to a record high.

The stoppage was due to end today but labour leaders said it would continue if the Government used heavy-handed tactics against strikers.

At least two persons have been killed in clashes between protesters and the police, a modest toll compared with previous strikes, but the unions signalled that they would maintain their momentum.

Quite effective

"The strike is going on and it's quite effective across the country," said Owei Lakemfa, a spokesman for the Nigeria Labour Congress. "We have told the police that if the arrests and harassment continue, we'll have to extend the strike."

Oddly, given the impact on world oil prices, the strike was called to reverse steep rises in local fuel prices following the slashing of State subsidies. The Government of the President, Olusegun Obasanjo, sought a court injunction yesterday to stop the shutdown, claiming it was illegal and unconstitutional to strike for reasons unrelated to working conditions.

`Cannot be deterred'

But a high court in Abuja rejected the request. The Nigeria Labour Congress, an umbrella union body, was delighted. "We cannot be deterred in our struggle," said a spokesman.

Femi Falana, a lawyer for the organisation, added: "The court has not stopped the strike. And that is a good development."

In another blow to the Government, the main oil workers' union, NUPENG, in solidarity with other unions, yesterday threatened to shut down oil supplies in the country — which is Africa's biggest crude oil producer.

So far, Nigeria's daily export of 2.5m barrels has not been disrupted, but the possibility that it could drove world prices up to $54.45 a barrel on Tuesday. Prices have since eased but analysts predicted a fresh surge at the first sign of disruption.

Cheap fuel is a political and emotional touchstone in Nigeria. Decades of corruption and misrule have left Africa's most populous country resentful of the Federal Government, especially since Nigeria became the world's seventh biggest oil exporter and yet has seen little done to alleviate the grinding poverty. The least the State can do, say many Nigerians, is provide discounted fuel. But the subsidies are expensive and their market distortions have encouraged smugglers to export oil illegally, leading to occasional shortages in cities such as Lagos and Abuja. — © Guardian Newspapers Limited 2004

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