US embassy cable - 03ABUJA1147

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001147 
 
SIPDIS 
 
 
STATE PASS USTR 
STATE PASS AF/W, INR, EB 
 
 
E.O. 12958: DECL: 07/01/2008 
TAGS: ELAB, EPET, ENRG, PGOV, ASEC, CASC, NI 
SUBJECT: NIGERIA: POLICE KILL FOUR DEMONSTRATORS; STRIKE 
CONTINUES 
 
REF: (A) ABUJA 1135 (B) ABUJA 1107 (C) ABUJA 1091 
 
 
Classified by Ambassador Howard F. Jeter; Reasons 1.5 (B) and 
(D). 
 
 
1. (U) Summary:  The Nigeria Labour Congress (NLC) strike 
entered its second day with reports of sporadic violence, 
including four people apparently killed near Abuja. 
Nevertheless, the general mood is less tense than it was 
during the strike's first day.  Some domestic flights resumed 
today, and the major oil companies report no interruption in 
their operations.  Efforts to resolve the strike continue, 
with NLC leaders and the Presidency meeting from the 
afternoon of June 30 to the early morning of July 1.  No 
resolution to the impasse was achieved, but the Government 
and NLC did agree to establish a "technical committee" that 
will draft recommendations to end the crisis.   The country 
remains mostly calm.  However, as long as the strike 
continues, the possibility of altercations between police and 
strikers exists and political tensions could escalate.  End 
Summary. 
 
 
Four Strikers Killed and 88 Jailed in Abuja 
------------------------------------------- 
 
 
2. (U) GON officials confirmed to Poloff that police killed 
four people attempting to block a road in one of Abuja's 
satellite towns on June 30.  Initially, the press reported 
that police confirmed the deaths then later retracted the 
statement, claiming to have no information that strikers were 
shot.  NLC officials claimed (and eyewitness accounts tend to 
corroborate) that live ammunition was used during the 
encounter in the satellite town.  Eighty-eight protesters 
were arrested in Abuja yesterday.  Many labor leaders were 
detained temporarily. 
 
 
3. (U) An Embassy police source reported heavy security and 
military patrols in major cities.  Embassy sources in Kano, 
Kaduna, Zaria, Sokoto and throughout the North reported that 
banks, shops and markets remained closed.  Non-unionized 
private sector industries, however, were operating as usual. 
 
 
Police Lock Down NLC Headquarters 
--------------------------------- 
 
 
4. (U) Senior NLC official Salihu Lukman confirmed to Econoff 
that police sealed off NLC Headquarters in Abuja this morning 
for several hours.  An NLC advisor complained President 
Obasanjo was trying to intimidate the NLC. By locking down 
the NLC Headquarters (traditionally a rallying point for 
strikers) the President hoped to stop labor-led protests, the 
official stated.  NLC senior official Benson Upah also 
claimed that police fired tear gas and live ammunition at a 
vehicle carrying Oshiomole this morning. 
 
 
Crude Still Flowing 
------------------- 
 
 
5. Members of NUPENG, the blue collar oil workers union, have 
joined in the strike.  A Lagos-based Exxon-Mobil official 
reports the strike has not disrupted oil production, and 
exports continue apace. A Shell representative also reported 
no production disruptions due to the strike. At this time, 
PENGASSEN, the skilled petroleum worker's union, has not 
joined the strike but will likely make a decision following a 
meeting in Abuja today. 
 
 
Lagos and the South Calm 
------------------------- 
 
 
6. (U) Lagos remained quiet and mostly calm.  While most 
businesses remained closed, some shopping centers were open. 
Lagos' mainland region, where the bulk of Lagosians live, 
experienced a second morning of scattered violence, with 
gangs of young men burning tires and intimidating drivers 
going to work. 
 
 
7. (U) There was noticeably increased police presence. There 
were also reports of police clashing with bands of strike 
sympathizers at key intersections early Tuesday morning. On 
Ikoyi and Victoria Islands, the focal point of the financial 
and services sectors where most diplomatic missions are 
located, the strike was having virtually no impact other than 
the closure of some businesses and a welcomed reduction in 
traffic. 
 
 
8. (U) Ogun, the President's home state, is reportedly "shut 
down" today due to the strike.  The situation in the 
South-South also appears quiet.  Port Harcourt experienced 
minor incidents of violence. Most residents stayed home, but 
some gas stations were operating and drivers were queuing for 
fuel. Civil servants appeared for work on Tuesday in larger 
numbers than on Monday.  Warri appeared no more tense than 
usual in recent months, and no specific acts of violence or 
clashes have been reported. 
 
 
Air Travel Resumes, but Some Flights Canceled 
--------------------------------------------- - 
 
 
9. (U) Most domestic airlines claimed they were operating 
normally on domestic routes Tuesday morning, but passengers 
reported many canceled flights.  Officials of the National 
Union of Air Transport Employees (NUATE) and Air Transport 
Services Senior Staff Association of Nigeria (ATSSSAN) 
reported that their attempts to shut down flight operations 
had been unsuccessful.  Some disruptions were reported, but 
air traffic controllers, for the most part, elected not to 
strike.  An NLC official reported they were planning to block 
all the routes leading to the Lagos airport to prevent 
passenger access. (Comment: Such an action would likely be 
met with stiff police and security response. End Comment.) 
On Monday morning, an attempt to chain the gates of the 
airport was easily overcome by airport security. There was 
reportedly no shortage of jet-fuel at Nigeria's airports 
today. 
 
 
10. (U) The Nigerian Stock Exchange operated normally on 
Monday, but volumes were low because some dealers were 
absent. Nonetheless, banking shares in particular remained 
actively traded, with analysts reporting a generally positive 
mood overall in the securities market. 
 
 
Comment 
------- 
 
 
11. (C) On its second day, the strike continues to complicate 
may normal business activities throughout Nigeria.  But the 
atmosphere is less expectant today than yesterday and it is 
too early to determine whether the strikers will be able to 
hold out or if their action has had such an economic impact 
that it would cause government to want a quick resolution by 
sharply reducing their price increase.  Nevertheless, the 
proposed technical committee may be a face-saving device for 
both Labor and the Government wherein a compromise price is 
reached, allowing each side to claim a victory of sorts. 
This is precisely how a similar nation-wide strike over a 
petrol price increase was settled a few years ago.  In the 
end, and no matter how gallant labor fights, a petrol price 
increase is inevitable.  That said, the price increase will, 
in the short term, result in higher food and transportation 
costs, stretching the naira even thinner for most Nigerians. 
End Comment. 
 
 
 
 
JETER