US embassy cable - 03LAGOS2043

UNCLAS LAGOS 002043 
 
SIPDIS 
 
 
USDOL WASHDC FOR ROBERT YOUNG 
 
 
E.O. 12598: N/A 
TAGS: ELAB, EPET, PGOV, KDEM, NI 
SUBJECT: NIGERIA: NLC MEETS TO PLAN MASS ACTION IN RESPONSE 
TO FURTHER INCREASE IN FUEL PRICES 
 
1.  The battle lines now appeared to be drawn between 
government and labor over possible fuel price increases. 
Long queues at gas stations throughout the country reflect 
speculation that the GON might announce further increases in 
fuel prices as early as October 1. 
 
 
2.  The Central Working Committee of the Nigeria Labor 
Congress (NLC) held an emergency meeting in Lagos on 
September 29 to discuss a response to a possible price hike. 
The NLC believes Obasanjo will announce GON plans to 
deregulate the petroleum industry's downstream sector and 
encourage oil marketers to charge whatever price they want 
for petroleum products. 
 
 
3.  Following its meeting, the NLC vowed publicly to resist 
any further increase in gas prices and warned it will not 
hesitate to recommence its suspended strike action of last 
June to protest an earlier price hike.  The NLC's National 
Executive Council plans meet on October 6 in Lagos to 
continue mapping out its plans for a nationwide strike. 
Already, the Nigerian Bar Association (NBA) and Lagos-based 
Committee for the Defense of Human Rights (CDHR) have warned 
that they are prepared to support protestors who participate 
in the planned strike. 
 
 
4.  Comment:  An announcement by Obasanjo of an increase in 
gas prices anytime in the next two weeks will be ill timed 
given that Nigeria is hosting the 8th All Africa Games in 
Abuja.  Last June's fuel price hike, and the nationwide 
industrial action that followed, occurred one week before 
the visit of President Bush to Nigeria.  Many believe that 
the GON was forced to lower prices to avoid the perception 
of instability during the presidential visit.   Mass action 
during the All Africa Games would present a similar threat. 
End comment. 
 
 
Hinson-Jones