Indefinite fuel strike in Nigeria finds wide support

Irish Sun Monday 9th January, 2012

LAGOS The first day of an indefinite strike called by unions in Nigeria over the elimination of a fuel subsidy brought the country to a standstill Monday.

Most shops, offices, schools and petrol stations around the country remained closed while thousands staged protests in Lagos and other cities at the loss of the subsidy which has meant a doubling of fuel and transport costs.

In a televised statement Saturday, President Goodluck Jonathan defended the austerity moves stating the subsidy was economically unsustainable

"We must act in the public interest, no matter how tough, for the pains of today cannot be compared to the benefits of tomorrow," said Jonathan turning down the plea of members of parliament to reconsider the decision to stop the fuel subsidy.

The austerity moves will also see a 25 per cent cut in wages and reduction in foreign trips of government officials.

The government has assured that the estimated $8 billion savings every year from austerity measures will help to invest more in developing infrastructure for health, education and the power supply.

Since the government announcement of withdrawal in fuel subsidy on January 1, there have been sporadic protests.

A major oil producer and largest exporter in Africa, lack of adequate refining capacity has made Nigeria dependent on imports for petrol and other petroleum products for domestic use.

The growing import bill together with rising debt burden and subsidy bill has led Nigeria to withdraw the fuel subsidy, a step the International Monetary Fund has been urging it to take for sometime.

In the main northern city of Kano, 12 people were injured in the scuffle as police fired tear gas and shots in the air to disperse thousands of protesters who were converging on the governor's office.

The loss of the fuel subsidy has angered many Nigerians, who saw it as the only benefit they received from the country's vast oil wealth.

Most of Nigeria's 160 million people live on less than $2 a day, so the sharp price increases have hit them hard.

"With these increases, the cost of transport has gone up and this has also affected the cost of food, and the basic necessities of life, such as rents, school fees and medical bills," said Chris Uyot, a spokesman for the Nigeria Labour Congress, one of the strike's organisers.

A similar strike in 2003 saw Nigeria almost entirely shut down. It ended with the government agreeing to reduce the subsidy instead of eliminating it.

While the strike is expected to affect oil workers too, industry sources do not expect it to significantly affect crude exports.