US embassy cable - 04LAGOS2306

UNCLAS LAGOS 002306 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAIR, ELAB, EPET, KDEM, NI, PGOV 
SUBJECT: GON PROMISES FUEL PRICE REDUCTION AND LABOR 
SUSPENDS STRIKE 
 
 
1.  (U) On November 15, the GON announced it would 
reduce the price of fuel to N49 per liter. Responding 
to the promised price reduction, the Labor and Civil 
Society Coalition (LASCO) suspended the strike planned 
to begin November 16. Nigeria Labour Congress (NLC) 
President Adams Oshiomhole told journalists that the 
decision was promoted by the price reduction as well as 
by last week's court order restraining the NLC from 
embarking on the strike.  Oshiomhole said the decision 
to suspend the strike is subject to change, however, if 
the price reduction is not implemented within the next 
week. 
 
2.  (U) Denja Yakub, NLC assistant secretary, told 
Polspec that LASCO suspended the strike to ensure that 
the coalition complied with the court order. The court 
has not yet ruled on the GON appeal contesting the 
NLC's right to strike. Both parties were ordered to 
return to court on November 17 to argue their cases. 
The court order issued last week restrained the NLC 
from striking until a ruling was made in the appeal 
case. 
 
3. (U) Although the strike was called off, many 
Lagosians decided to remain home today. Vehicular 
traffic was much lighter than normal and many workers 
did not report to duty. The suspension of the strike 
has caused the local business community to give a 
collective sigh of relief. Two attorneys who represent 
major banks told the Consul General that depositors at 
their banks were making massive withdrawals in 
contemplation of the threatened indefinite strike. 
Firms in other sectors were also bracing for loss or 
dislocation of business. We expect Lagos to return to 
normal tomorrow. 
 
Browne