/ 8 October 2004

Nigerian petrol hike fuels strike threats

Like the traffic fumes slowly rising above the potholed streets of Lagos, tensions are running high throughout Nigeria over recent petrol price increases.

The Nigerian Labour Congress (NLC), supported by up to 30 civil- society groups, including students and lawyers, have threatened to go on strike on October 11 if the pump price of fuel is not reduced to pre-September levels.

Prices rose from 43 naira to about 53 to 57 naira in Lagos, but in many parts of the country it is as high as 80 naira.

Two previous strikes have been effective in forcing the government to ditch price hikes, however, a recent court ruling sanctioned an amendment to a Bill that bans a walkout unrelated to employment issues. The government hopes this will act as a deterrent, or at least reduce support for the strike.

Nigeria is the seventh-largest exporter of oil in the world but has to import refined products because its four oil refineries, run by the Nigerian National Petroleum Corporation (NNPC), fail to operate at anywhere near capacity as a result of sabotage, corruption, poor maintenance and bad management.

The NNPC plans to sell its four refineries and deregulate the refining industry and the government intends introducing requirements that crude oil producers refine at least 50% locally by 2005. These measures, it is hoped, will save the NNPC up to $2-billion in fuel subsidies.

About 70% of Nigeria’s population lives below $1 a day. The minimum wage is 4000 naira a month.

An okada driver — cheap transport on the back of a motorbike — said he pushed up his fare but ”most people refuse and pay the same as before the hike in price”.

Taxi driver Tume Ahemba waiting in the queue to fill up with petrol, said he had made ”about 10% less since the petrol price rise”.