A general strike in Africa’s top oil producer began on Wednesday after unions rejected government concessions on fuel prices as too little too late.
The offices of Western oil companies operating in Nigeria were closed along with most other businesses, but oil production and exports were uninterrupted, company officials said.
”All our offices are locked up but there has been no interference in our operations yet,” said a senior executive at a large Western oil company.
Unions have ordered workers to go on ”total strike”, but the leader of one of two main oil unions said it would take time to shut down the country’s economic lifeline.
”We told them the strike is total and they have to comply,” said Peter Akpatason, head of the NUPENG oil union.
Asked if oil exports would be affected, he said: ”If it prolongs, but not in the first hour of the strike.”
Oil companies use non-unionised staff to maintain basic operations, but some union members are required to sign off on exports and this is the most vulnerable link in the chain.
Shipping agents said there were no reports of oil tankers being delayed at the export terminals.
Streets in the main cities were deserted, but this was partly due to a five-day-old strike by road tanker drivers which has left most of the country without fuel.
The unions pressed on with the strike to protest against a rise in fuel prices despite some concessions from the government.
Unions said the government’s offer to reduce pump prices by 5 naira (4 cents) a litre was not enough and that only a full reversal of the 10-naira increase could avert the action.
The strike call has helped to keep world oil prices at close to 10-month highs of around $72 a barrel.
In a statement on Tuesday night, the government urged people to go about their business normally and said security measures had been taken to ensure the safety of anyone who wanted to work.
Previous 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.
Challenge
The dispute is a major challenge to newly inaugurated President Umaru Yar’Adua, who took office three weeks ago and has yet to name his Cabinet.
He inherited the crisis from his predecessor, former President Olusegun Obasanjo, who increased fuel prices, doubled value-added tax and privatised two oil refineries days before leaving office on May 29.
Unions had also demanded the government cancel the tax increase, void the refinery sales and implement a public sector pay rise.
Yar’Adua agreed to the demands on VAT and public sector pay, but suggested unions consult the privatisation agency regarding the sale of the refineries, which were sold unexpectedly to an Obasanjo ally in the two weeks before he stood down.
Nigeria’s government cannot survive for long without exporting oil, because it provides more than 90% of the country’s foreign exchange earnings.
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, clean water, healthcare or decent schools.
Nigeria’s four oil refineries have been shut for months because of sabotage and mismanagement, and Africa’s largest producer of crude oil is entirely dependent on imports to meet its fuel needs. – Reuters