Lagos shutdown as strike bites

Lagos has been badly hit by recent fuel price hikes

A national strike over fuel price rises continues for a second day, after trade unions reject a compromise deal offered by the government.

The commercial capital, Lagos, has been almost deserted since the strike began on Thursday. Public transport has stayed off the streets and no flights seen taking off from the city's airports.

The main oil workers' union also joined the strike on Friday, which has already closed schools, shops, hospitals and banks, but oil industry officials say disruption has been minimal.

The concession given by government is unacceptable

Adams Oshimole, Union leader

The strike is a test of strength for the unions - which have re-emerged in the past year following the return to democratic rule.

The Nigerian Government, which originally announced a 50% price rise, has offered to reduce it to a 25% increase.

Presidential spokesman Doyin Okupe said the compromise reflected President Obasanjo's belief "in upholding the tenets of democracy" and appreciation of the widespread outcry that greeted the increases in petroleum product prices.

But after several hours of talks with the main trade union body on Thursday, the leader of the Nigeria Labour Congress, Adams Oshimole, rejected the offer.

"The concession given by government is unacceptable, so we shall continue with our strike until the president listens to labour," Mr Oshiomhole said.

Strike set to grow

Last week the government raised the price of petrol from 20 to 30 naira per litre ($0.20-$0.30).

The NLC is demanding an outright return to the old price of 20 naira per litre.

The main oil union, the white-collar PENGASSAN, joined the strike on Friday over the fuel increases.

But oil company officials are so far reporting little if any disruption to operations.

PENGASSAN members mainly process crude oil export documents. Oil companies have in the past deployed management staff to fill in for striking union members.

Hot issue

The price of petrol and diesel has long been one of Nigeria's hottest political issues.

The country has large oil reserves and its production costs are low, so Nigerians have come to see very cheap petrol as their right - the one certain benefit they get from their national oil wealth.

Attempts in the past to raise the price have brought an angry reaction on the streets.

And this dispute has also become the first real test of trade union strength since the return to democracy a year ago.

General Sani Abacha's military dictatorship crushed the Nigerian Labour Congress.

Now it has revived, and this strike, over a popular issue, will show how much support it can command.