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Nigeria strikes over soaring fuel costs

Nigerian unions have launched a nationwide strike over the elimination of a government fuel subsidy. Correspondents say the strike is likely to bring parts of the country, Africa's largest oil exporter, to a standstill. There have been angry protests since the subsidy ended on 1 January as fuel and transport costs have doubled. Members of parliament have called on President Goodluck Jonathan to reconsider, but he has said the subsidy was economically unsustainable. Nigeria's two main trades unions vowed to press ahead with the indefinite general strike despite a court order restraining them from it. Ahead of the strike, there were long queues at petrol stations as motorists and users of generators tried to stock up on fuel. A similar strike in 2003 saw Nigeria almost entirely shut down. While the strike is expected to affect oil workers too, industry sources do not expect the industrial action to significantly affect crude exports, Reuters news agency reports. 'Everything's up' 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 (£1.30) 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. "Everything's up - everything's up and the wage level in Nigeria is very low. So the issue now is how do they expect these millions of Nigerians, we are talking about over 70% of Nigerians, how are they going to survive?" Despite being a major Opec oil producer, Nigeria has not invested in the infrastructure to produce refined fuel, so has to import much of its petrol. President Jonathan made a televised address on Saturday to defend the removal of the subsidy and other government austerity moves. "We must act in the public interest, no matter how tough, for the pains of today cannot be compared to the benefits of tomorrow." The deregulation of the petroleum sector was, he insisted, the best way to curb corruption and ensure the survival and growth of the economy. "The truth is that we are all faced with two basic choices... either we deregulate and survive economically, or we continue with a subsidy regime that will continue to undermine our economy and potential for growth, and face serious consequences." He said that top government officials would, from this year, take a 25% pay cut, and foreign trips would also be reduced. The government says it will spend the money it saves on improving health, education and the electricity supply.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.