US embassy cable - 03ABUJA1135

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001135 
 
SIPDIS 
 
 
STATE FOR AF/W, INR AND EB 
STATE PASS USTR 
 
 
E.O. 12958: DECL: 06/30/2008 
TAGS: ELAB, PINS, EPET, ENRG, ASEC, CASC, PGOV, NI 
SUBJECT: NIGERIA: FUEL STRIKE SLOWS COUNTRY 
 
 
REF: (A) ABUJA 1091 (B) ABUJA 1107 
 
 
Classified by Ambassador Howard F. Jeter; Reasons 1.5 (B) and 
(D). 
 
 
1. (U) Summary: The promised nation-wide strike by the 
Nigeria Labour Congress (NLC) over fuel price increases began 
June 30. While the strike did not completely shut down the 
country or any of its major cities, streets throughout 
Nigeria were less busy than normal, as many workers stayed 
home. A protest at the Federal Secretariat in Abuja was 
broken up by tear gas and police reportedly arrested some of 
the demonstrators.  Minor, scattered violence by strike 
sympathizers has been reported, but we have no reports of 
fatalities or significant property damage. Domestic flights 
were canceled in the morning but some resumed in the 
afternoon. Meanwhile, talks continue between the NLC and the 
GON. NLC officials remain adamant that the strike will 
continue until the fuel price increase is reduced.  Thus far, 
the GON has characterized the price increase as 
non-negotiable. This confrontation continues to present an 
opportunity for Obasanjo's political opponents to press their 
grievances by riding labor's coat-tails. End Summary. 
 
 
NLC Follows Through on Strike Threat 
------------------------------------ 
 
 
2. (U) Last-minute negotiations between the NLC and GON 
failed over the weekend, and on June 30 the NLC went forward 
with the nation-wide strike. The NLC refused to obey a 
federal court injunction issued in Lagos enjoining the strike. 
 
 
Crude Still Pumping 
------------------- 
 
 
3. (U) The National Union of Petroleum and Natural Gas 
Workers (NUPENG) officials reported June 30 that both 
upstream and downstream workers are on strike. Chevron 
officials say only 10 percent of Chevron's Lagos workforce 
reported for work, but claim business as usual at its 
Escravos facility. Mobil's head office is open and appears to 
be normally staffed; however, some workers did not report at 
its Apapa, Lagos, facility. An oil service representative in 
Port Harcourt reported business as usual. There, union 
leaders have told workers to support the strike yet ensure 
that all essential work is performed. 
 
 
Lagos Domestic Airport Closed; Streets Quiet 
-------------------------------------------- 
 
 
4. (U) In Lagos, streets were much quieter than usual for a 
Monday. Although among the most vocal opponents to the fuel 
price increases, transportation workers and owners continue 
to ply the streets, but in far fewer numbers than usual. Gas 
stations and banks in Lagos were reported closed or operating 
with mostly management-level staff. Observers report that 
many other businesses are closed either because workers could 
not get to the office or stayed home for fear of violence. 
 
 
5. (U) The NLC had roadblocked many of the arteries to Lagos 
domestic airport. Most domestic flights were canceled this 
morning because jet-fuel deliveries were delayed, but some 
flights resumed in the afternoon. International flights to 
Lagos arrived this morning as scheduled. 
 
 
6. (U) Scattered violence was reported on Lagos' mainland, 
including barricaded streets and burning tires. Columns of 
police marching toward major demonstration points have been 
reported in Lagos. 
 
 
Police Disperse Demonstrations in Abuja 
--------------------------------------- 
 
 
7. (U) In Abuja, NLC members and strike sympathizers 
disrupted the morning commute by blocking major roads into 
the capital with vehicles and burning tires. Over 1,000 
protesters rallied in front of the Federal Secretariat early 
in the day.  By mid-morning, Police used tear gas to disperse 
the crowd; some protesters were arrested.  Two journalists 
were also arrested at the rally, but have reportedly been 
released. 
 
 
Other Cities Quiet 
------------------ 
 
 
8. (U) In Kano, over 2,000 students and workers protested the 
fuel price increase by marching on Government House; however, 
no violence was reported.  In Kaduna, Katsina and Zaria 
public transport operators stayed home and observers describe 
the cities as ghost towns. Observers reported some fighting 
between strikers and police in Asaba, capital of Delta State 
early in the day.  According to reports, Asaba is now calm 
but traffic and business remains subdued. 
 
 
NLC Officials Call Strike A Success 
----------------------------------- 
 
 
9. (U) Senior NLC officials told Econoff that they were 
satisfied with workers' adherence to the strike on its first 
day. NLC General Secretary John Odah said by bringing the 
country to a standstill, President Obasanjo has no choice but 
to negotiate with labor. Odah added that the NLC would likely 
meet Obasanjo this afternoon; he was unsure whether the NLC 
and GON could reach an agreement. Before the NLC would halt 
the strike, he added, the GON must rescind the fuel price 
increase and enter into a dialogue with labor over any 
proposed fuel price increase. The GON would then have to 
explain to labor why the four GON-operated oil refineries are 
operating at less than 50 percent capacity or not at all, 
Odah concluded. 
 
 
10. (U) Post transmitted a message on the warden system 
notifying U.S. citizens to exercise caution due to increased 
tensions caused by the strike.  No incidents involving U.S. 
citizens have been reported. 
 
 
Comment 
------- 
 
 
11. (C) On it first day, the strike did not bring the country 
to a halt. However, worker obeisance was substantial and 
widespread.  The strike has caused disruption because of this 
initial relative success, and therefore, has a chance of 
gaining traction. Conversely, it also could fizzle in two or 
three days.  Much will depend on the lessons the GON and NLC 
learn this first day and on their perception of which of them 
has the upperhand. 
 
 
12. (C) A meeting between the President and Oshiomhole was 
scheduled later today. Oshiomhole - recently disparaged in a 
major newspaper as a "former labor leader and the current 
Special Advisor to the President on Strike Matters" - is in a 
difficult situation.  He must balance his political affinity 
to the Government with his obligation to the millions of 
workers he represents. The strike presents a new opening for 
Obasanjo's opponents to press their grievances over the April 
elections. Barely one month into his new Administration 
Obasanjo has taken a major step toward economic reform but 
one that is politically unpopular. Should workers continue to 
strike, Obasanjo might have to partially relax this 
economically warranted move to get a political respite. End 
Comment. 
JETER