Nigeria’s oil unions threaten to stop output

NIGERIA’S two main oil unions threatened to shut output in Africa’s top crude producer as a national strike entered its fourth day, mounting pressure on President Goodluck Jonathan to restore fuel subsidies.

The Nupeng union said it has withdrawn its workers from oil fields, while the other, Pengassan, said yesterday it told its 24,000 members to “be on red alert” in preparation for a shutdown of fields operated by companies such as Royal Dutch Shell. The strike has limited trade in stocks and the naira, Nigeria’s currency, and closed ports and bank branches.

“If there’s a prolonged shutdown of oil exports, that would put tremendous pressure on the government,” Antony Goldman, head of PM Consulting, said. In the short term, “companies producing off floating production storage and offloading vessels can probably increase production” to offset initial losses, he said.