Oil markets on edge as Nigeria strikes

A GENERAL strike gripped Nigeria yesterday, posing the first significant test for the country’s new president and putting oil markets on edge over supplies from one of the world’s top crude exporters.

The main labour union decided to go ahead with the strike after the government of President Umaru Yar’Adua, who was only sworn in late last month, refused fully to reverse a 15% hike in the price of petrol.

In the commercial capital, Lagos, streets were free of the rush-hour logjam with barely one-tenth of the normal traffic on the roads, while only a few senior government officials showed up for work in the administrative capital, Abuja.

Most government schools were closed.

The walkout, which could further hamper oil exports from Nigeria — the world’s sixth largest exporter — sent crude prices to their highest levels in nine months on Monday.

However, it was not clear to what impact the labour action would have.

“There’s no sign of anything being paralysed for the time being,” one oil industry source said.

One quarter of Nigeria’s total daily output of 2.6 million barrels is already lost due to unrest in the southern Niger delta region.

Other union officials were pleased with support for the strike. “Compliance by Nigerians is on and it will come up gradually till it reaches its peak. This is just the beginning,” said Elijah Okougho, of the National Union of Petroleum and Natural Gas Workers (NUPENG).

Labour movements decided early yesterday to proceed with the strike after the government acceded to a number of their demands but refused to fully reverse an increase in petrol prices.