June 17, 2007
A general strike in Africa's top oil producer will go ahead as planned on Wednesday despite concessions offered by the government,. Nigerian labour unions said.
Nigerian government in a meeting on Monday night, offered to take back half a eights cents per litre increase in the fuel price, among other concessions to unions whose action threatens to halt oil shipments from the world's eighth largest exporter.
"We are insisting on a total reversal of the fuel price increase," said Peter Akpatason, president of the powerful NUPENG oil union, on his way to another meeting with the government.
Experts say the strike threat is a major challenge to the newly inaugurated President Umaru Yar'Adua, who took office three weeks ago and has yet to name a cabinet.
Akpatason said unions would meet the government again on Tuesday morning and then hold another internal meeting of top union bosses in the afternoon.
"After that we will know the way forward," he added.
At Monday night's meeting, the government also agreed to cancel a doubling of value-added tax and back-date a public sector pay rise to Jan. 1, accepting two union demands.
The unions had also demanded a cancellation of the privatisation of two oil refineries.
All the controversial measures were carried out by former President Olusegun Obasanjo in the dying days of his administration which ended on May 29.
The government, on the refinery sales, said unions should seek explanations from the privatisation agency which rushed through the sales unexpectedly to one of Obasanjo's business allies. Union leaders said the strike would be total, and would include oil production and exports, although there was some uncertainty over how quickly this would happen.
Meanwhile, earlier strikes in Nigeria have had a limited impact on oil operations, because they tend to build strength slowly and are normally resolved within a few days.
Lengthy fuel queues have already formed outside the few service stations still selling petrol in Nigeria as road tanker drivers have been on strike since last Thursday.
Bus fares have tripled in Nigeria's largest city Lagos.
Many Nigerians support the strike because they see cheap fuel as one of the few benefits they receive from a government that has failed to deliver constant power, drinking water, health care and decent schools.
Nigeria's four oil refineries have been shut for months because of sabotage and mismanagement, and Africa's largest producer of crude is entirely dependent on imports to meet its fuel needs.
The government justified the fuel price increase to 59 cents per litre by pointing to rising world prices. The government says it spends billions of dollars every year on subsidies which would be better directed to social programmes. - Reuters
Nigerian government in a meeting on Monday night, offered to take back half a eights cents per litre increase in the fuel price, among other concessions to unions whose action threatens to halt oil shipments from the world's eighth largest exporter.
"We are insisting on a total reversal of the fuel price increase," said Peter Akpatason, president of the powerful NUPENG oil union, on his way to another meeting with the government.
Experts say the strike threat is a major challenge to the newly inaugurated President Umaru Yar'Adua, who took office three weeks ago and has yet to name a cabinet.
Akpatason said unions would meet the government again on Tuesday morning and then hold another internal meeting of top union bosses in the afternoon.
"After that we will know the way forward," he added.
At Monday night's meeting, the government also agreed to cancel a doubling of value-added tax and back-date a public sector pay rise to Jan. 1, accepting two union demands.
The unions had also demanded a cancellation of the privatisation of two oil refineries.
All the controversial measures were carried out by former President Olusegun Obasanjo in the dying days of his administration which ended on May 29.
The government, on the refinery sales, said unions should seek explanations from the privatisation agency which rushed through the sales unexpectedly to one of Obasanjo's business allies. Union leaders said the strike would be total, and would include oil production and exports, although there was some uncertainty over how quickly this would happen.
Meanwhile, earlier strikes in Nigeria have had a limited impact on oil operations, because they tend to build strength slowly and are normally resolved within a few days.
Lengthy fuel queues have already formed outside the few service stations still selling petrol in Nigeria as road tanker drivers have been on strike since last Thursday.
Bus fares have tripled in Nigeria's largest city Lagos.
Many Nigerians support the strike because they see cheap fuel as one of the few benefits they receive from a government that has failed to deliver constant power, drinking water, health care and decent schools.
Nigeria's four oil refineries have been shut for months because of sabotage and mismanagement, and Africa's largest producer of crude is entirely dependent on imports to meet its fuel needs.
The government justified the fuel price increase to 59 cents per litre by pointing to rising world prices. The government says it spends billions of dollars every year on subsidies which would be better directed to social programmes. - Reuters
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