04.01 pm, Friday May 25 2012

Nigeria to cut fuel prices amid strikes

18:04 AEDT Mon Jan 16 2012
By Jon Gambrell
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Nigeria's president has announced the government would subsidise petrol prices to immediately reduce the price to about $US2.75 a gallon amid a crippling nationwide strike over fuel prices in Africa's most populous country.

President Goodluck Jonathan also claimed provocateurs have hijacked the protests and demonstrations, which have seen tens of thousands march in cities across the nation.

Jonathan offered no other details on his claim, but his address on the state-run Nigerian Television Authority on Monday showed how worried his government had become by the demonstrations now shaking the country's young democracy.

"It has become clear to government and all well-meaning Nigerians that other interests beyond the implementation of the deregulation policy have hijacked the protest," Jonathan said.

"This has prevented an objective assessment and consideration of all the contending issues for which dialogue was initiated by government. These same interests seek to promote discord, anarchy, and insecurity to the detriment of public peace."

Jonathan's speech comes after his attempt to negotiate with labour unions failed late on Sunday night to avert the strike entering a sixth day.

Nigeria Labour Congress President Abdulwaheed Omar said early on Monday morning he had ordered workers to stay at home over Jonathan's fears about security, but that might not keep people away from mass demonstrations like one that has seen more than 20,000 people show up in the country's commercial capital of Lagos.

The strike began on January 9, paralysing the nation of more than 160 million people. The root cause remains petrol prices: Jonathan's government abandoned subsidies that kept petrol prices low on January 1, causing prices to spike from $US1.70 per gallon (45 US cents a litre) to at least $US3.50 a gallon (94 US cents a litre). The costs of food and transportation also largely doubled in a nation where most people live on less than $US2 a day.

Anger over losing one of the few benefits average Nigerians see from living in an oil-rich country led to demonstrations across the nation and violence that has killed at least 10 people. Red Cross volunteers have treated more than 600 people injured in protests since the strike began, officials said.

Jonathan and other government officials have argued that removing the subsidies, which are estimated to cost $US8 billion ($A7.80 billion) a year, would allow the government to spend money on badly needed public projects across a country that has cratered roads, little electricity and a lack of clean drinking water for its inhabitants.

However, many remain suspicious of government as military rulers and politicians have plundered government budgets since independence from Britain in 1960.

The strike also could cut into oil production in Nigeria, a nation that produces about 2.4 million barrels of crude a day and remains a top energy supplier to the US. A major oil workers association threatened on Thursday to stop all oil production in Nigeria at midnight on Saturday over the continued impasse in negotiations. However, the Nigeria Labour Congress said the association had held off on the threatened production halt.

 

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