US embassy cable - 03ABUJA1195

C O N F I D E N T I A L ABUJA 001195 
 
SIPDIS 
 
 
E.O. 12958: DECL: 07/08/2008 
TAGS: ELAB, EPET, ENRG, PGOV, PHUM, ASEC, CASC, NI 
SUBJECT: NIGERIA: FUEL STRIKE ENDS 
 
REF: (A) ABUJA 1172 (B) ABUJA 1168 AND PREVIOUS 
 
 
 
 
Classified by Ambassador Howard F. Jeter; For Reasons 1.5 (B) 
and (D). 
 
 
1. (C) SUMMARY: The Nigeria Labour Congress (NLC) accepted 
the GON's 34 naira (23 cents) fuel price offer early this 
morning.  With this, Labor's eight-day strike has ended, one 
day after the most violent twenty-four hours of the strike. 
Five to ten demonstrators were reportedly killed in Lagos 
yesterday, with hundreds injured and jailed.  The end came 
after an all-night session that Labor sources described as 
"lengthy debate and arm twisting from the Senate President 
and Speaker of the House."  Both sides appeared concerned 
that a prolonged strike would incite further violence. 
However, the NLC vowed it would resume the strike if the GON 
refused to pay workers who honored the strike or failed to 
investigate strike-related killings.  END SUMMARY. 
 
 
2. (U) Labor's eight-day strike ended at 0600 July 8, when 
the Nigeria Labour Congress (NLC) agreed to the Government's 
34 naira/liter (23 cents) offer.  Following what has been the 
most violent day of the strike, the agreement caught some by 
surprise.  We expect neither Abuja nor Nigeria as a whole to 
rebound immediately.  Businesses remained closed today.  The 
lack of fuel will likely delay Nigeria's return to normalcy 
for two or three days as deliveries begin to arrive 
throughout the country.  Meanwhile, an official at the 
Nigerian National Petroleum Corporation stated the Petroleum 
Products Pricing Regulatory Agency would officially announce 
the new price today. 
 
 
3.  (U) The Monday activity which brought the strike to a 
close included widespread demonstrations in Lagos, Abeokuta, 
Suleja, Lokoja and other locations.  NLC leaders claimed that 
at least 10 people died in Lagos during the final day of the 
strike.  Along with the 10 previously reported deaths in 
Abuja and three reported deaths in Port Harcourt, the toll 
may be at least 23 persons.  Hundreds have been injured 
(including the victims of the Abuja Wuse Market stampede) and 
many labor and student leaders were detained.  We have not 
heard whether those still under detention have been released. 
 
 
 
 
4.  (U)  Labor leaders said that the agreement came after a 
ten-hour session and "arm-twisting" by government officials, 
including Senate President Adolphus Wabara and Speaker of the 
House Aminu Masari.  One member of the NLC's National 
Executive Council told Poloff that the stridency of the 
protests had "surprised and worried" labor leaders.  However, 
the NLC warned that it would resume the strike if workers who 
stayed home were not paid and if the police do not 
investigate the killings that occurred during the 
demonstrations around the country. 
 
 
5. (C) Comment: The strike has ended with few people 
satisfied but with just about everyone feeling a sense of 
relief.  Right now, it is difficult to gauge winners and 
losers.  Labor proved its muscle by dragging the strike out 
for nine days but still agreed to a 30 percent price 
increase.  The GON also won an increase in prices, but below 
the 35 naira level it argued was the minimum to spur further 
fuel imports and thus ease the country's shortage.  In the 
wake of yesterday's violence, both sides were anxious to end 
the strike before more potential violence spread further. 
However, this may not be the final chapter.  The GON wants 
fuel prices to reach 40 naira by year's end.  Given the 
lesson of the strike, perhaps the Government will do a better 
job of consulting with Labor the next time around.  End 
Comment. 
JETER