End of subsidised petrol fuels unrest across Nigeria

Lagos: For decades, Nigerians have expected low gasoline prices, one of the few perks seen by residents of an oil-rich nation where corruption siphons billions. Now, that long-cherished benefit has ended, more than doubling prices and fuelling a planned nationwide strike by angry labour unions.

The strike scheduled for today already bears echoes of a similar nationwide strike in 2003 that saw the country almost entirely shut down by angry labourers and residents. And while analysts say that removing the subsidy will free up $8 billion (Dh29.36 billion) a year that is needed to help the country, they warn that the way it was carried out only alienates those living in a nation of more than 160 million people where only the wealthy elite benefit from its oil riches.

"The government does not have credibility," said Adeola Adenikinju, an economics professor at the University of Ibadan who has long supported ending the fuel subsidy. "I think the issue is that Nigerians don't trust government."

Gas prices have risen from $1.70 per gallon (45 cents per litre) to at least $3.50 per gallon (94 cents per litre) since the subsidy ended on January 1 at the order of President Goodluck Jonathan. That also spurred a spike in prices for food and transportation across a nation where most people live on less than $2 a day.

In response, two major unions have called for a strike today. While an industrial court has issued an order trying to stop the strike, the Nigerian Labour Congress already has said it will send its members out into the streets no matter what — mirroring a July 2003 strike where it ignored a court order as well.

Production stalled

That eight-day strike saw work in the country halted as labour activists and others attacked shops that remained open and took over the air traffic control towers at Lagos' international airport. Police fought with activists and local gang members swept up into violence, firing tear gas and shooting others dead.

More troubling for the US, which relies on Nig-eria for its own fuel supplies, oil workers began walking off the job, stalling production. Nigeria, an Opec member nation, now produces about 2.4 million barrels of crude oil a day.

Ultimately, the strike ended when the government agreed to bring prices down with subsidies. However, Jonathan and other government officials now say they won't back down from their decision, warning Nigeria will collapse under the weight of the ballooning costs of the subsidies.

Televised address

Acknowledging the anger, Jonathan made a nationwide televised address on Saturday night on the state-run Nigerian Television Authority promising some austerity cuts on travel and salaries in the executive branch, as well as new jobs.

"Let me seize this opportunity to assure all Nigerians that I feel the pain that you all feel," Jonathan said. He later added: "Whatever pain you may feel at the moment will be temporary."

The labour unions that called the strike later dismissed Jonathan's offer of cuts, saying the country "cannot afford the high fuel prices and will not accept the hyper-inflation this misguided policy has created".

Providing cheap gas wasn't that expensive back in 1973, when military ruler General Yakubu "Jack" Gowon first brought uniform fuel prices to the country. Nigeria still had refineries able to keep up with demand, with the state-run oil company sending crude directly from the oil fields to be produced into gasoline, Adenikinju said. But by 2000, Nigeria's refineries had fallen apart due to corruption and mismanagement, unable to keep up with demand from the fast-growing population, the professor said.