US embassy cable - 02ABUJA2738

UNCLAS ABUJA 002738 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: EINV, ELAB, EPET, NI 
SUBJECT: NIGERIA: OIL WORKERS' STRIKE CAUSES SHORT-LIVED 
GASOLINE SHORTAGES 
 
REF: ABUJA 2567 
 
 
1. PENGASSAN, Nigeria's white collar oil and gas union, in 
cooperation with the blue collar Nigerian Union of Petroleum 
and Natural Gas (NUPENG), held a one day "warning strike" on 
September 23 to protest the planned privatization of certain 
downstream operations of the Nigerian National Petroleum 
Corporation (NNPC) (Reftel).  In solidarity, oil tanker 
drivers, who are NUPENG workers, stopped transporting 
gasoline from September 20-23.  The strike was scheduled to 
last through Tuesday, September 24, but was called off 
earlier after the reported intervention of Minister of 
Employment and Productivity Alhaji Musa Gwadabe.  In Lagos, 
most gasoline stations had sufficient reserves to continue 
pumping gasoline during the strike, though some refused to do 
so for fear of NUPENG reprisals. In other parts of Nigeria, 
the impact was more severe, with lines at the pumps reaching 
more than one kilometer in Abuja.  There have been no reports 
of violence associated with the strikes, and as of September 
25, lines at fueling stations were returning to more typical 
lengths of ten to twenty cars deep.  Comment: The unions 
intended the warning strike to scare the GON into shelving 
plans to privatize NNPC's refineries. If the unions cannot 
secure an agreement they find satisfactory, they are likely 
to follow through on their threats to strike again. 
Privatization does not enjoy much domestic support.  With 
elections quickly approaching, the President will almost 
certainly postpone privatization plans for fear of the 
political damage that would be caused by an extended fuel 
strike. End comment. 
JETER