Nigeria fuel protest strike called off

Unions in Nigeria have called off their strike aimed at overturning a government fuel-price hike, ending a four-day work stoppage that had closed down most major economic activity in Africa’s biggest oil producer.

Union officials said they accepted the government’s proposal to hold off on raising fuel prices for a year, while accepting an earlier proposition to halve a previous price increase that sparked the strike.

Secretary General John Odah of the blue-collar Nigerian Labour Congress that led the action said the strike had ended. The government confirmed the deal.

“There is no winner or loser,” said Babagana Kingibe, who was leading the negotiations for the government. “If there’s a loser, it’s the Nigerian people.”

The strike began on Wednesday, shutting schools, banks, most government offices and large businesses. There were no reports that the action had cut oil production or exports.

Under the deal as described by labour officials last night, the unions relented on their demands that the government roll back a 15% increase in fuel prices, and settled for the government’s compromise of an increase half that size.

The government, meanwhile, pledged not to raise fuel prices again for one year.

While major economic activity was crippled by the strike, most Nigerians work in the informal economy and essential items were still obtainable, although prices were rising.

Virtually all of Nigeria’s petrol is now imported after years of graft, mismanagement and violence rendered refineries inoperable.

Heavy government subsidies keep reimported petroleum products cheap in a country whose citizens complain they get little else in the way of services from a notoriously corrupt government.

Only three weeks in office, President Umaru Yar’Adua has faced perhaps his biggest challenge so far – one handed to him by his predecessor, who announced the price hike and related tax increases in the waning days of his administration.

Oil receipts account for some 80% of Nigeria’s total government revenue. Nigeria’s energy industry is the biggest in Africa and the eighth-largest worldwide, and the threats to turn off the taps sent crude prices towards nine-month highs on international markets.