US embassy cable - 05LAGOS1429

UNCLAS LAGOS 001429 
 
SIPDIS 
 
DOE FOR DAS JBRODMAN AND CGAYE 
TREASURY FOR ASEVERENS AND SRENANDER 
DOC FOR KBURRESS 
STATE PASS TRANSPORTATION MARAD 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
STATE PASS EX-IM FOR JRICHTER AND KVRANICH 
STATE PASS OPIC FOR ZHAN AND JEDWARDS 
STATE PASS TDA FOR NCABOT AND BTERNET 
 
E.O. 12958: N/A 
TAGS: ELAB, EPET, KDEM, PGOV, NI 
SUBJECT: LAGOS LABOR UPDATE 
 
REF: A) LAGOS 1428 B) LAGOS 1397 C) LAGOS 1377 
 
1.  Nigerian Labor Congress (NLC) and other civil society 
leaders are headed to Benin City today to speak with police 
authorities regarding security measures for the September 16 
rally against fuel price increases.  Organizers are mindful 
of the violent student disturbances in Benin in early 
September due to the price increase (ref C) and are 
attempting to make sure a repeat does not occur. 
 
2.  After meeting the Ministry of Labor yesterday September 
14, John Awoniyi, Director of the Michael Imoudou Institute 
of Labor Studies (MIILS) said the GON would attempt to 
negotiate with Labor next week in order to head of the 
upcoming series of rallies.  After Benin City, rallies are 
scheduled for Kano (Sept. 20), Yola (Sept. 22), Owerri (Sept. 
26), Jos (Sept. 28), and Abuja (Sept. 30).  These dates and 
places reflect major changes from those reported in ref B. 
With the return of President Obasanjo to Nigeria this 
weekend, both petroleum union leaders and government 
officials are sanguine about their ability to negotiate and 
end the rallies early. 
 
3.  According to Awoniyi, the GON is prepared to lower fuel 
prices by 1 or 2 naira per liter, even if - as labor leaders 
expect - prices will return to their current level soon 
thereafter.  The GON will also stress the allotment of N200 
billion in the 2006 budget to create a stabilization fund 
that will keep prices from escalating rapidly.  Mantu 
Committee recommendations (ref B) call for an ideal price of 
50 naira per liter with a 2 naira bandwith on either side. 
Awoniyi reported the Minister of Labor wanted to use this 
figure as a benchmark.  The GON, he said, will also remain 
firm in their expectation of a private sector solution for 
refinery problems. 
 
4.  Previous meetings between the GON and Labor have broken 
down because GON officials claimed they had no authority to 
adjust fuel prices.  Awoniyi said the Minister of Labor 
expects authorization to lower prices by 1 to 2 naira once 
President Obasanjo returns from the U.N. and pending the 
course of negotiations.  GON officials are expected to call 
for negotiations next week at the latest. 
BROWNE