Identifier
Created
Classification
Origin
03LAGOS2058
2003-10-03 15:26:00
CONFIDENTIAL
Consulate Lagos
Cable title:  

NLC PLANS TO BOYCOTT ALL AFRICA GAMES AS PART OF A

Tags:  ASEC CASC ELAB ENRG EPET KDEM NI PGOV PHUM 
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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 LAGOS 002058 

SIPDIS


AMEMBASSY GABORONE FOR LESLIE BASSETT
AMEMBASSY FREETOWN FOR ALEX SEVERENS
OPIC COLLECTIVE FOR CONAL DUFFY


E.O. 12958: DECL: 10/02/2013
TAGS: ASEC CASC ELAB ENRG EPET KDEM NI PGOV PHUM
SUBJECT: NLC PLANS TO BOYCOTT ALL AFRICA GAMES AS PART OF A
NATIONAL PROTEST AGAINST THE GAS PRICE HIKE

REF: LAGOS 02043 ABUJA 01700


Classified By: Laboff Michael Veasy Reason: 1.5 (B & D)


C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 002058

SIPDIS


AMEMBASSY GABORONE FOR LESLIE BASSETT
AMEMBASSY FREETOWN FOR ALEX SEVERENS
OPIC COLLECTIVE FOR CONAL DUFFY


E.O. 12958: DECL: 10/02/2013
TAGS: ASEC CASC ELAB ENRG EPET KDEM NI PGOV PHUM
SUBJECT: NLC PLANS TO BOYCOTT ALL AFRICA GAMES AS PART OF A
NATIONAL PROTEST AGAINST THE GAS PRICE HIKE

REF: LAGOS 02043 ABUJA 01700


Classified By: Laboff Michael Veasy Reason: 1.5 (B & D)



1. (U) On October 1, gas stations throughout the nation
increased their prices from 34 naira per liter to 39.5 naira
in Lagos and Abuja and as much as 60 naira per liter in
several states in the east. While the majority of gas
stations have raised prices (a handful of Nigerian National
Petroleum Corporation (NNPC) pumps are still charging 34
naira). Although the GON announced the start of deregulation
of gas prices, it did not specifically mention an increase.
Following the price hike, The Nigeria Labour Congress (NLC)
announced that it plans to protest the overnight increases in
fuel prices by calling a general strike and asking all
Nigerians not to attend the upcoming All Africa Games.



2. (U) The NLC has moved up its National Executive Council
meeting from October 6 to October 4 in Ibadan so that labor
leaders have more time to organize if they decide to begin
mass protest on Monday. Labor leaders also met with
forty-two human rights organizations in Lagos midday on
October 3 to formulate a unified strategy. In addition, the
NLC has received support from the Congress of Free Trade
Unions (CFTU),Nigeria's newest trade union center. The
CFTU is comprised of senior staff associations who
disassociated themselves from the Trade Union Congress (TUC)
following complaints that the TUC leadership misled its
constituents during the previous gas price strike in June.



3. (U) Laboff spoke with Bayo Olowoshile, Acting General
Secretary of the Petroleum and Natural Gas Senior Staff

SIPDIS
Association of Nigeria, who expressed concern about
Nigeria's image as it prepares for the All Africa Games.

PENGASSAN represents managers and senior-level employees
within the petroleum sector. Consistent with its softer
stance during the previous strike, which prompted the TUC
split, Olowoshile told Laboff that PENGASSAN is trying to
convince the NLC to shelve the strike and seek other options.
However, NLC General Secretary John Odah said the NLC
remains unsympathetic with regard to the impact on the games,
since the GON was aware of the possible fallout.



4. (C) NLC President Adams Oshiomhole told Poloff that
PENGASSAN is not on board for a national strike, but he
thought they would come around when they were isolated. He
said NUPENG would not take independent action such as telling
its workers to stop hauling gasoline. However, he was quite
loud and clear to poloff and several other interlocutors that
the problem was Obasanjo trying to get his way without
consulting, not deregulation per se. He said Obasanjo could
have talked with the NLC and other stakeholders about a small
price hike if the GON needed money for the All Africa Games
or other projects, and would probably have won agreement to
adding 2-4 naira.



5. (U) In Lagos, labor leaders will probably extend their
efforts to incorporate growing protests over recent
restrictions on danfo buses, since they see the ban as
another example of government policies that have increased
transportation costs for Nigerian workers whose salaries are
already well below an acceptable living wage. Danfo buses
serve as an informal public transportation system widely used
throughout the country by a majority of Nigerians. Workers
claim that the decision to replace danfo buses with city
buses in parts of Lagos has failed to provide viable options,
since the new public transportation has extremely limited
capacity to accommodate the large number of Nigerians who
previously used the informal system. In addition, the cost
of public transportation has increased more than fifty
percent. For example, commuters who paid 20 naira for danfo
buses in Lagos are now paying 50 naira for
government-operated transport.



6. (C) Comment: The issue of gas price deregulation was
noticeably absent from President Obasanjo's October 1
Independence Day address, which has led to claims by NGOs and
labor leaders that the GON intentionally deceived the
Nigerian public. Labor will use this claim to mobilize
general support of its planned boycott of the All Africa
games in Abuja. Senior GON officials told Econoff that the
deregulation decision was taken two weeks ago in the Federal
Executive Council. The GON plan was to say nothing and
access the climate after deregulation took effect, adding
that the non-announcement gives the GON the ability to fine
tune its position if there is a major labor crisis.



7. (U) There is a fair amount of disingenuous behavior on
both sides. The GON is claiming that it deregulated but did
not "increase" the price, while the unions claim that they
were not warned. In fact, everyone has been waiting since
July for the price increase shoe to drop. The outstanding
question is whether the games or unrest will force the GON to
back down again.



8. (C) For his part, Mobil Managing Director Mike Fry said
that while he was not responsible for Mobil's downstream
operations, he believed Mobil, CTN and Agip would all keep
their prices across the country in the 38-39.5 naira band for
October in response to the letter of instructions from the
GON, but raise prices gradually to the 58-60 naira break-even
price for importing gasoline. End comment.
HINSON-JONES