Identifier
Created
Classification
Origin
03ABUJA1135
2003-06-30 19:04:00
CONFIDENTIAL
Embassy Abuja
Cable title:  

NIGERIA: FUEL STRIKE SLOWS COUNTRY

Tags:  ELAB PINS EPET ENRG ASEC CASC PGOV NI 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001135 

SIPDIS


STATE FOR AF/W, INR AND EB
STATE PASS USTR


E.O. 12958: DECL: 06/30/2008
TAGS: ELAB PINS EPET ENRG ASEC CASC PGOV NI
SUBJECT: NIGERIA: FUEL STRIKE SLOWS COUNTRY


REF: (A) ABUJA 1091 (B) ABUJA 1107


Classified by Ambassador Howard F. Jeter; Reasons 1.5 (B) and
(D).


C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001135

SIPDIS


STATE FOR AF/W, INR AND EB
STATE PASS USTR


E.O. 12958: DECL: 06/30/2008
TAGS: ELAB PINS EPET ENRG ASEC CASC PGOV NI
SUBJECT: NIGERIA: FUEL STRIKE SLOWS COUNTRY


REF: (A) ABUJA 1091 (B) ABUJA 1107


Classified by Ambassador Howard F. Jeter; Reasons 1.5 (B) and
(D).



1. (U) Summary: The promised nation-wide strike by the
Nigeria Labour Congress (NLC) over fuel price increases began
June 30. While the strike did not completely shut down the
country or any of its major cities, streets throughout
Nigeria were less busy than normal, as many workers stayed
home. A protest at the Federal Secretariat in Abuja was
broken up by tear gas and police reportedly arrested some of
the demonstrators. Minor, scattered violence by strike
sympathizers has been reported, but we have no reports of
fatalities or significant property damage. Domestic flights
were canceled in the morning but some resumed in the
afternoon. Meanwhile, talks continue between the NLC and the
GON. NLC officials remain adamant that the strike will
continue until the fuel price increase is reduced. Thus far,
the GON has characterized the price increase as
non-negotiable. This confrontation continues to present an
opportunity for Obasanjo's political opponents to press their
grievances by riding labor's coat-tails. End Summary.


NLC Follows Through on Strike Threat
--------------



2. (U) Last-minute negotiations between the NLC and GON
failed over the weekend, and on June 30 the NLC went forward
with the nation-wide strike. The NLC refused to obey a
federal court injunction issued in Lagos enjoining the strike.


Crude Still Pumping
--------------



3. (U) The National Union of Petroleum and Natural Gas
Workers (NUPENG) officials reported June 30 that both
upstream and downstream workers are on strike. Chevron
officials say only 10 percent of Chevron's Lagos workforce
reported for work, but claim business as usual at its
Escravos facility. Mobil's head office is open and appears to
be normally staffed; however, some workers did not report at

its Apapa, Lagos, facility. An oil service representative in
Port Harcourt reported business as usual. There, union
leaders have told workers to support the strike yet ensure
that all essential work is performed.


Lagos Domestic Airport Closed; Streets Quiet
--------------



4. (U) In Lagos, streets were much quieter than usual for a
Monday. Although among the most vocal opponents to the fuel
price increases, transportation workers and owners continue
to ply the streets, but in far fewer numbers than usual. Gas
stations and banks in Lagos were reported closed or operating
with mostly management-level staff. Observers report that
many other businesses are closed either because workers could
not get to the office or stayed home for fear of violence.



5. (U) The NLC had roadblocked many of the arteries to Lagos
domestic airport. Most domestic flights were canceled this
morning because jet-fuel deliveries were delayed, but some
flights resumed in the afternoon. International flights to
Lagos arrived this morning as scheduled.



6. (U) Scattered violence was reported on Lagos' mainland,
including barricaded streets and burning tires. Columns of
police marching toward major demonstration points have been
reported in Lagos.


Police Disperse Demonstrations in Abuja
--------------



7. (U) In Abuja, NLC members and strike sympathizers
disrupted the morning commute by blocking major roads into
the capital with vehicles and burning tires. Over 1,000
protesters rallied in front of the Federal Secretariat early
in the day. By mid-morning, Police used tear gas to disperse
the crowd; some protesters were arrested. Two journalists
were also arrested at the rally, but have reportedly been
released.


Other Cities Quiet
--------------



8. (U) In Kano, over 2,000 students and workers protested the
fuel price increase by marching on Government House; however,
no violence was reported. In Kaduna, Katsina and Zaria
public transport operators stayed home and observers describe
the cities as ghost towns. Observers reported some fighting
between strikers and police in Asaba, capital of Delta State
early in the day. According to reports, Asaba is now calm
but traffic and business remains subdued.


NLC Officials Call Strike A Success
--------------



9. (U) Senior NLC officials told Econoff that they were
satisfied with workers' adherence to the strike on its first
day. NLC General Secretary John Odah said by bringing the
country to a standstill, President Obasanjo has no choice but
to negotiate with labor. Odah added that the NLC would likely
meet Obasanjo this afternoon; he was unsure whether the NLC
and GON could reach an agreement. Before the NLC would halt
the strike, he added, the GON must rescind the fuel price
increase and enter into a dialogue with labor over any
proposed fuel price increase. The GON would then have to
explain to labor why the four GON-operated oil refineries are
operating at less than 50 percent capacity or not at all,
Odah concluded.



10. (U) Post transmitted a message on the warden system
notifying U.S. citizens to exercise caution due to increased
tensions caused by the strike. No incidents involving U.S.
citizens have been reported.


Comment
--------------



11. (C) On it first day, the strike did not bring the country
to a halt. However, worker obeisance was substantial and
widespread. The strike has caused disruption because of this
initial relative success, and therefore, has a chance of
gaining traction. Conversely, it also could fizzle in two or
three days. Much will depend on the lessons the GON and NLC
learn this first day and on their perception of which of them
has the upperhand.



12. (C) A meeting between the President and Oshiomhole was
scheduled later today. Oshiomhole - recently disparaged in a
major newspaper as a "former labor leader and the current
Special Advisor to the President on Strike Matters" - is in a
difficult situation. He must balance his political affinity
to the Government with his obligation to the millions of
workers he represents. The strike presents a new opening for
Obasanjo's opponents to press their grievances over the April
elections. Barely one month into his new Administration
Obasanjo has taken a major step toward economic reform but
one that is politically unpopular. Should workers continue to
strike, Obasanjo might have to partially relax this
economically warranted move to get a political respite. End
Comment.
JETER