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Latest update: 13/01/2012
- Nigeria - oil - strike
Strikes in Nigeria to continue despite 'fruitful' oil talks
Strikes against the scrapping of fuel subsidies in Nigeria were continuing on Friday after unions and the government failed to reach an agreement. Talks are due to resume on Saturday amid union threats to shut down the country’s oil output.
By News Wires (text)
REUTERS - One of Nigeria’s main trade unions said talks with President Goodluck Jonathan over the government’s removal of publicly popular fuel subsidies were ‘fruitful’ and ongoing, but strikes would continue until an agreement was reached.
Nigeria scrapped subsidies on petrol imports on Jan. 1, more than doubling the pump price to around 150 naira ($0.93)a litre, sparking bitter protests across the country.
Tens of thousands of Nigerians had been demonstrating in cities up and down Africa’s most populous nation for four straight days as neither side was ready to concede an inch.
Unions said the pre-subsidy removal petrol price of 65 naira a litre must be reintroduced and the government said fuel subsidies were gone for good because they were corrupt and a dangerous drain on Africa’s second-largest economy.
But Jonathan and unions met late on Thursday.
“We had fruitful discussions, both sides have agreed to shift ground. We will be meeting again on Saturday,” said Abdulwaheed Omar, president of Nigeria Labour Congress, one of Nigeria’s two biggest workers’ unions.
“Unless and until we get a conclusive conclusion from the discussion then that means we will maintain status quo. For now the strike still continues,” Omar said.
The central bank governor, Lamido Sanusi, told Reuters the strikes were costing the economy more than $600 million a day.
Presidency sources say the sticking point is the price of petrol and both sides may have to concede to a temporary fixed price, somewhere between 65 and 150 naira a litre.
It is not clear if unions are open to a phased subsidy removal. Sanusi said the key for government was to get unions to agree to subsidies being removed, even if it was in the future.
Oil output
Nigeria’s main oil union said before the meeting it would shut down output from Africa’s biggest oil producer on Sunday if the government did not meet the public’s demands, piling pressure of Jonathan to begin negotiations.
“PENGASSAN shall be forced to go ahead and apply the bitter option of ordering the systematic shutting down of oil and gas production with effect from ... 0000 hours of Sunday Jan. 15 (2300 GMT on Saturday Jan. 14), if the federal government of Nigeria fails to yield to the popular agitation of Nigerians on her unacceptable approach to fuel subsidy removal,” the oil union said in a statement.
Industry officials doubted unions would be able to stop crude exports completely because much of production is automated and Nigeria has crude stored in reserves, but even a minor outage could have a significant impact on the economy.
Worries over Nigerian oil supplies have pushed up global oil prices.
Nigeria produces more than 2 million barrels of crude oil per day and is a key supplier to United States, Europe and Asia. Crude exports provide Africa’s second-largest economy with over 90 percent of foreign exchange revenues.
Economists say the subsidy fuelled corruption and keeping it in place would force Nigeria into huge external borrowing, but Nigerians, many of whom live on less than $2 a day, saw it as their most tangible welfare benefit.
Despite holding the world’s seventh-largest gas reserves and producing over 2 million bpd of crude, decades of graft and mismanagement mean Nigeria has to import almost all of its fuel needs.
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Comments (10)
Still not satisfy ...
I'm still not satisfy with calling of the strike, Government should totally remove the Subsidy and focus on Security for God sake...
Cut Your Allowances Not Our Throats
What Nigerians are saying is that if the Federal Government wants to "free up" funds, it should obtain it from those who have much to spare. A responsible government ought to take the lead in sacrificial living; our rulers don't want to tamper with their comfort but see no wrong in telling an already struggling citizenry to endure more hardship. Cutting allowances of national assembly members will reduce National expenditure by a substantial 22.5%!!!
Nigeria , Nigerians and Nigerian leaders
Oil subsidy removal is good for nations building if and only if, its citizens has confidence on their leaders.A good leader is the one who lead by example and respect the views of his followers.
PLEASE LABOUR LETS ACCEPT
REMOVAL OF FUEL SUBSIDY I BELIEVE WILL MAKE NIGERIA BETTER,LETS LISTEN TO THE VOICE OF THE MAN WE VOTED FOR,THE MAN WE HAD HOPE IN,WE TRUSTED AND GAVE POWER TO.WHATEVER IT IS GOD'S WILL,SHALL PREVAIL.IF WE TRUSTED OUR DEAR PRESIDENT AND PUT HIM IN POWER AGAINST ALL ODDS,THEN IF HE FAILS HE HAS GOD TO CONTEND WITH.LETS GIVE HIM A CHANCE IN THIS ONE.
thet lied
they been been lying since 1960..... but its so unfortunate that the poor , the fatherless ,the widow have to pay for what they never purchased... this leaders of ours re more wicked then colonial master of ours... instead of playing on our intelligence.let them tell us that we re now back to slavery
STRIKES IN NIGERIA
Quite unfortunate that a nation blessed with a large quantity of crude oil is going through this situation due to mismanagement and corruption. Government has said that the proceeds from the subsidy removal would be used for the benefit of Nigerians, but the questions are as follows:
1. Having been disappointed by the previous governments over unfulfilled promises, will this present Nigerian government keep to her words?
2. Secondly, the people, especially the educated Nigerians, seem to be ready to bear the hardship engendered by the fuel subsidy removal for a short time, pending when the dividends come up but they are afraid of being cajoled and dragged into another sea of suffering caused by government policy.
contribution
Nigerian Government should bullied or repairs a refinery.
They should stop given the masses punishment and stress.
There is no electricity, no employments no good education, no good road, no security,so much corruption over our leaders no equipment in the hospital no government encouragement.
Killings in Nigeria
Is this how this life is? The killings in Nigeria has been overshadowed by the fuel crisis. The world press has ignored the killings and focussed on oil that they know is more important to them. The people in Government has used this fuel subsidy to divert attention from the killings. Now no body is discussing the cleansings of southerners and christians. Hmm, may God help. British press hadly mention anything about the killings. I am sure you know the outcome as soon as the fuel palaba is over. Revange revange revange. Wise move by the people in Government
Live in peace Nigeria
What is engulfing Nigeria, this oil rich West African nation has not known peace for long time. Other Countries like my own Liberia are already feeling the pinch of Nigerians migration, we can't cope with it. we are too small a country to host such huge influx of Nigerians. Please settle ur crisis and live in peace.
fuel subsidy
this is d best tin 4 us bin 9ja pipo,our economic has turn 2 sumtin else,so is beta 2 remove fuel subsidy 4 now
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