US embassy cable - 05LAGOS654

C O N F I D E N T I A L LAGOS 000654 
 
SIPDIS 
 
E.O. 12958: DECL: 04/28/2009 
TAGS: ELAB, EPET, KDEM, NI, PGOV 
SUBJECT: NIGERIA: PETROLEUM TRUCK DRIVERS STRIKE ENTERS DAY 
FIVE 
 
REF: LAGOS 631 
 
Classified By: Political/Economic Chief Ava Rogers per 1.4 b and d 
 
1. (C) Summary: In an effort to resolve the on-going 
petroleum truck driver strike, the chairman of Zenon 
Petroleum and Gas paid Lagos State government an undisclosed 
fee, ostensibly to cover the impoundment fees levied against 
striking drivers.  However, Lagos State and the drivers 
remain at loggerheads over where to park the petroleum 
trailers and the strike has not/not yet been suspended.  Five 
days halted fuel distribution have stranded thousands of 
commuters.  Despite the consequences, the public appears to 
support the State's effort to end the drivers' dangerous 
practice of parking trailers on major highways.  End summary. 
 
2. (C) Zenon President and CEO, Femi Otedola, confirmed he 
paid Lagos government to release 40 impounded petroleum 
trucks.  Striking drivers had made the release of these 
trucks a pre-condition for ending the labor action (reftel). 
Though the impoundment fines reportedly totaled N2million 
(about $15,000), Otedola intimated he paid a significantly 
larger amount.  Otedola told us he called Governor Tinubu 
April 28 in London to ask how he could help resolve the 
strike.  When Otedola expressed a willingness to pay the 
impoundment fees, Tinubu reportedly retorted, "well if you 
have so much money, pay N4million."  Otedola did not divulge 
the final amount of his payment. 
 
3.  (C) Zenon is the largest diesel marketer in Nigeria.  For 
Odetola, the strike is bad business and he is willing to pay 
money to whomever in order to make it go away.  Odetola said 
in his view, Lagos Governor Tinubu's actions are politically 
influenced.  Having been unable for almost a year now to 
secure the local government revenues owed Lagos by the 
Federal Government, Tinubu must find ways to show he is 
"still in charge."  If the muscle-flexing also results in 
extra revenue, so much the better, Odetola averred. 
 
4. (SBU) The week-long strike has been a nightmare for 
commuters who are paying up to 50 percent more for 
transportation, when it can be secured at all.  Black-market 
fuel hawkers are recording huge profits, while major oil 
marketers tally equally astounding losses.  Otedola said in 
five days, Zenon has lost over N3 billion in revenues and 
incurred N250 million in demurrage charges on imported 
diesel.  Grasping for any resolution, Otedola offered to help 
finance the alternative parking lots needed. 
 
5. (SBU) Despite Zenon's largesse, the strike persists. 
Peter Akpatason, President of the National Union of Petroleum 
and Natural Gas Workers (NUPENG), told us the sticking point 
is the State's insistence that drivers sign an agreement 
pledging to no longer park on the highways.  Union members 
said they would only agree to such an undertaking, after the 
state developed an alternative parking site.  Akpatason 
hinted a compromise may be reached where parties jointly 
agree to "find a lasting solution to the problem". 
 
6.  (SBU)  The Lagos government maintains signing the "I 
won't do it again" declaration is standard operating 
procedure before the release of any impounded vehicle. 
Transportation Commissioner Muiz Benire has vowed not to 
waive the stipulation, pronouncing it the only guarantee 
against recidivism.   Benire urged Lagosians to weather the 
difficulties as part of the state's efforts to improve road 
safety.  Separately, a Lagos government official told us a 
newly-wed couple's death was the catalyst for the state's 
crackdown. 
 
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Comment 
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7. (C) In spite the difficulties caused by the strike, 
Lagosians seem to support the government's actions for now. 
Holding the truck drivers responsible for scores of 
accidents, which were perhaps avoidable, they find the 
state's measures justified.  Many petroleum truck drivers 
hail from northern Nigeria and accordingly owe little fealty 
to the Lagos power-structure.  Active involvement and 
"lubrication" from major fuel marketers such as Otedola will 
likely be what gets this strike resolved. 
BROWNE