NIGERIA: Trade union leaders suspend a strike over fuel subsidies that crippled the economy last week, while a few protesters try to to continue protesting on the outskirts of the country's financial capital, Lagos
Record ID:
235472
NIGERIA: Trade union leaders suspend a strike over fuel subsidies that crippled the economy last week, while a few protesters try to to continue protesting on the outskirts of the country's financial capital, Lagos
- Title: NIGERIA: Trade union leaders suspend a strike over fuel subsidies that crippled the economy last week, while a few protesters try to to continue protesting on the outskirts of the country's financial capital, Lagos
- Date: 17th January 2012
- Summary: ABUJA, NIGERIA (JANUARY 16, 2012) (REUTERS) EXTERIOR OF 'LABOUR HOUSE' BUILDING LABOUR UNION OFFICIALS SITTING JOURNALISTS (SOUNDBITE) (English) NIGERIA LABOUR CONGRESS PRESIDENT, ABDULWAHED OMAR, SAYING: "In the last 24 hours, the labour movement and its allies who had the historic responsibility of coordinating these mass actions have had cause to review the various actions and decided that in order to save lives and in the interest of national survival, these mass actions be suspended." VARIOUS OF LABOUR OFFICIALS ON THE HIGH TABLE (SOUNDBITE) (English) NIGERIA LABOUR CONGRESS PRESIDENT, ABDULWAHED OMAR, SAYING: "First the federal government that chorused continously that its decision to increase petrol (PMS) price to 141 is irreversible and irreducable was forced to announce a price reduction to 97 naira. We however state categorically that this was a unilateral one by the government." VARIOUS OF JOURNALISTS LOOKING ON (SOUNDBITE) (English) NIGERIA LABOUR CONGRESS PRESIDENT, ABDULWAHED OMAR, SAYING: "Secondly, government has been made to adopt the policy to drastically reduce the cost of governance. A third major success Nigerians recorded is to get the federal government to decisively move against the massive and crippling corruption in the oil sector. While until now, government has seemed helpless to tackle corruption, the mass action of the people has compelled it to address accountability issues in the sector. In this wise, President Goodluck Jonathan told the nation that the forensic audit report on the NNPC will be studied and proven acts of corruption will be sanctioned." NIGERIA LABOUR CONGRESS OFFICIAL LOOKING ON DEPARTURE LAGOS, NIGERIA (JANUARY 16, 2012) (REUTERS) VARIOUS OF PROTESTERS AT OJOTA, BEING DRIVEN BACK BY MILITARY OFFICERS MILITARY OFFICERS PROTESTERS CARRYING A CARDBOARD SIGN READING, "JONATHAN MUST GO" CARDBOARD SIGN READING "JONATHAN MUST GO" (SOUNDBITE) (English) LAGOS BASED LAWYER, TOKUNBO ODUTOLA, SAYING: "You are inviting military men unto the grounds, it's a shame, you can kill the people but you cannot kill the voice, you cannot kill the spirit, why don't you listen, we all went out to vote , we cast our vote and this is the result we are getting. It is an invitation to treat to he military jaunter so he has no excuse than to tell us I have failed this nation." PROTESTERS CHANTING SOLIDARITY SONG VARIOUS OF PROTESTERS WALKING AWAY
- Embargoed: 1st February 2012 12:00
- Keywords:
- Location: Nigeria, Nigeria
- Country: Nigeria
- Topics: Economy,Politics,Energy
- Reuters ID: LVA7ESMNVN7P507PQU9G7T4TOQJO
- Story Text: Nigeria's trade union leaders said on Monday (January 16) they had suspended a strike over fuel subsidies that crippled the economy last week and threatened to shut down the country's vital oil production.
A few hundred protesters chanting "solidarity forever" tried to to continue protesting in Ketu, on the outskirts of Lagos, but were blocked by armed riot police and soldiers.
The suspension follows talks with the authories over the weekend that led President President Goodluck Jonathan to announce a cut in petrol prices to 97 naira ($0.60) a litre on Monday from 150 naira.
His move partially reinstated a fuel subsidy, the scrapping of which was a key policy of Jonathan and his economic team. But it slashes the cost of the benefit to the government and leaves open negotiations to phase it out again later.
"In the last 24 hours, the labour movement and its allies who had the historic responsibility of coordinating these mass actionshave had cause to review the various actions and decided that in order to save lives and in the interest of national survival, these mass actions be suspended," Abdulwahed Omar, president of the Nigeria Labour Congress (NLC), said during a news conference.
The strikes paralysed Africa's second-largest economy last week and the oil workers union had threatened to shut down its 2 million barrel a day production.
Omar also said Nigeria's government had changed its earlier stance not to reverse its decision on the fuel subsidy.
"First the federal government that chorused continously that its decision to increase petrol (PMS) price to 141 is irreversible and irreducable was forced to announce a price reduction to 97 naira. We however state categorically that this was a unilateral one by the government," he said.
Jonathan met union leaders late on Sunday (January 15) in search of a compromise to end the strikes but he said later the talks had "yielded no tangible result" and he would pursue a policy of removing subsidies which he says breeds waste and corruption.
Abdulwahed further added that Nigerians' actions have made government commit to being accountable for their actions.
"Secondly, government has been made to adopt the policy to drastically reduce the cost of governance. A third major success Nigerians recorded is to get the federal government to decisively move against the massive and crippling corruption in the oil sector. While until now, government has seemed helpless to tackle corruption, the mass action of the people has compelled it to address accountability issues in the sector. In this wise, President Goodluck Jonathan told the nation that the forensic audit report on the NNPC will be studied and proven acts of corruption will be sanctioned."
Residents of Nigeria's biggest city Lagos reported soldiers in the streets in an apparent security move to contain any further protests.
It remains unclear whether the government will be able to keep the lid on the wider public anger unleashed by the subsidy protests, which is rooted in years of frustration at corrupt and incompetent governance.
A few hundred protesters chanting "solidarity forever" tried to continue protesting in Ketu, on the outskirts of Lagos, but were blocked by armed riot police and soldiers.
"You are inviting military men unto the grounds, it's a shame, you can kill the people but you cannot kill the voice, you cannot kill the spirit, why don't you listen, we all went out to vote , we cast our vote and this is the result we are getting. It is an invitation to treat to he military jaunter so he has no excuse than to tell us I have failed this nation," Tokunbo Odutola, Lagos based lawyer said .
When a price cap of 65 naira ended on Jan. 1, pump prices more than doubled, to 150 naira. The new cap of 97 naira still represents a 50 percent price increase since Jan. 1.
Critics of the subsidy cut have urged the government to lower its own spending first. Jonathan pledged such cuts in his speech, though trade unions are likely to fear that that cost-saving could mean public sector job cuts.
Oil output by Nigeria, Africa's biggest crude exporter, has not been affected so far by the labour unrest.
Global oil prices were boosted by fears of reduced supplies from Nigeria late last week. A serious production outage would push them sharply higher, traders and analysts say.
Several people were killed in clashes between strikers and police last week and 600 were treated for wounds, according to the Red Cross.
Many economists argue that the subsidy should be dropped because it was wasteful and open to corruption. Protesters have countered that position by asking the government to work harder to tackle graft and waste before rescinding public benefits.
Jonathan gave approval on Sunday for an investigation. Oil Minister Diezani Alison-Madueke said she had written to the Economic and Financial Crimes Commission inviting the regulator to examine the subsidy procedure.
Africa's most populous nation holds the world's seventh largest gas reserves but its infrastructure only provides enough power to run one medium-sized European city, meaning most of the country's 160 million people live without electricity. - Copyright Holder: REUTERS
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