NIGERIA: POLICE KILL FOUR DEMONSTRATORS; STRIKE

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001147

SIPDIS


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


E.O. 12958: DECL: 07/01/2008
TAGS: ELAB EPET ENRG PGOV ASEC CASC NI
SUBJECT: NIGERIA: POLICE KILL FOUR DEMONSTRATORS; STRIKE
CONTINUES

REF: (A) ABUJA 1135 (B) ABUJA 1107 (C) ABUJA 1091


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



1. (U) Summary: The Nigeria Labour Congress (NLC) strike
entered its second day with reports of sporadic violence,
including four people apparently killed near Abuja.
Nevertheless, the general mood is less tense than it was
during the strike's first day. Some domestic flights resumed
today, and the major oil companies report no interruption in
their operations. Efforts to resolve the strike continue,
with NLC leaders and the Presidency meeting from the
afternoon of June 30 to the early morning of July 1. No
resolution to the impasse was achieved, but the Government
and NLC did agree to establish a "technical committee" that
will draft recommendations to end the crisis. The country
remains mostly calm. However, as long as the strike
continues, the possibility of altercations between police and
strikers exists and political tensions could escalate. End
Summary.


Four Strikers Killed and 88 Jailed in Abuja
--------------



2. (U) GON officials confirmed to Poloff that police killed
four people attempting to block a road in one of Abuja's
satellite towns on June 30. Initially, the press reported
that police confirmed the deaths then later retracted the
statement, claiming to have no information that strikers were
shot. NLC officials claimed (and eyewitness accounts tend to
corroborate) that live ammunition was used during the
encounter in the satellite town. Eighty-eight protesters
were arrested in Abuja yesterday. Many labor leaders were
detained temporarily.



3. (U) An Embassy police source reported heavy security and
military patrols in major cities. Embassy sources in Kano,
Kaduna, Zaria, Sokoto and throughout the North reported that
banks, shops and markets remained closed. Non-unionized
private sector industries, however, were operating as usual.


Police Lock Down NLC Headquarters
--------------



4. (U) Senior NLC official Salihu Lukman confirmed to Econoff
that police sealed off NLC Headquarters in Abuja this morning
for several hours. An NLC advisor complained President
Obasanjo was trying to intimidate the NLC. By locking down
the NLC Headquarters (traditionally a rallying point for
strikers) the President hoped to stop labor-led protests, the
official stated. NLC senior official Benson Upah also
claimed that police fired tear gas and live ammunition at a
vehicle carrying Oshiomole this morning.


Crude Still Flowing
--------------



5. Members of NUPENG, the blue collar oil workers union, have
joined in the strike. A Lagos-based Exxon-Mobil official
reports the strike has not disrupted oil production, and
exports continue apace. A Shell representative also reported
no production disruptions due to the strike. At this time,
PENGASSEN, the skilled petroleum worker's union, has not
joined the strike but will likely make a decision following a
meeting in Abuja today.


Lagos and the South Calm
--------------



6. (U) Lagos remained quiet and mostly calm. While most
businesses remained closed, some shopping centers were open.
Lagos' mainland region, where the bulk of Lagosians live,
experienced a second morning of scattered violence, with
gangs of young men burning tires and intimidating drivers
going to work.



7. (U) There was noticeably increased police presence. There
were also reports of police clashing with bands of strike
sympathizers at key intersections early Tuesday morning. On
Ikoyi and Victoria Islands, the focal point of the financial
and services sectors where most diplomatic missions are
located, the strike was having virtually no impact other than
the closure of some businesses and a welcomed reduction in
traffic.



8. (U) Ogun, the President's home state, is reportedly "shut
down" today due to the strike. The situation in the
South-South also appears quiet. Port Harcourt experienced
minor incidents of violence. Most residents stayed home, but
some gas stations were operating and drivers were queuing for
fuel. Civil servants appeared for work on Tuesday in larger
numbers than on Monday. Warri appeared no more tense than
usual in recent months, and no specific acts of violence or
clashes have been reported.


Air Travel Resumes, but Some Flights Canceled
-------------- -



9. (U) Most domestic airlines claimed they were operating
normally on domestic routes Tuesday morning, but passengers
reported many canceled flights. Officials of the National
Union of Air Transport Employees (NUATE) and Air Transport
Services Senior Staff Association of Nigeria (ATSSSAN)
reported that their attempts to shut down flight operations
had been unsuccessful. Some disruptions were reported, but
air traffic controllers, for the most part, elected not to
strike. An NLC official reported they were planning to block
all the routes leading to the Lagos airport to prevent
passenger access. (Comment: Such an action would likely be
met with stiff police and security response. End Comment.)
On Monday morning, an attempt to chain the gates of the
airport was easily overcome by airport security. There was
reportedly no shortage of jet-fuel at Nigeria's airports
today.



10. (U) The Nigerian Stock Exchange operated normally on
Monday, but volumes were low because some dealers were
absent. Nonetheless, banking shares in particular remained
actively traded, with analysts reporting a generally positive
mood overall in the securities market.


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



11. (C) On its second day, the strike continues to complicate
may normal business activities throughout Nigeria. But the
atmosphere is less expectant today than yesterday and it is
too early to determine whether the strikers will be able to
hold out or if their action has had such an economic impact
that it would cause government to want a quick resolution by
sharply reducing their price increase. Nevertheless, the
proposed technical committee may be a face-saving device for
both Labor and the Government wherein a compromise price is
reached, allowing each side to claim a victory of sorts.
This is precisely how a similar nation-wide strike over a
petrol price increase was settled a few years ago. In the
end, and no matter how gallant labor fights, a petrol price
increase is inevitable. That said, the price increase will,
in the short term, result in higher food and transportation
costs, stretching the naira even thinner for most Nigerians.
End Comment.




JETER