Nigeria unions warn over oil hike

By Anna Borzello
BBC News, Lagos

The NLC has called several strikes over fuel price rises

Trade unions in Nigeria have threatened to call a mass action in protest at recent fuel price hikes.

Pump prices rose by about 25% last week following the government's decision to allow fuel importers to fix a price at which they sell fuel products.

Nigeria is the fifth largest exporter of crude oil within Opec but around 70% of the population live in poverty.

Many Nigerians feel the only benefit they see from their country's oil wealth is cheap subsidised fuel.

Ultimatum

After a day-long meeting, the Nigerian Labour Congress announced that it was giving the government a two-week ultimatum: either revert to the old pump price or face a stay-at-home protest on 11 October.

The price of fuel jumped by 25% last week to around 40 US cents a litre following a court ruling in the capital, Abuja, which gave the government the right to impose a fuel tax of one US cent per litre.

It also forbade the NLC from striking over government policy such as deregulation.

Fuel prices had been frozen until the court reached its decision, against which the NLC has said it will appeal.

Nigeria is the largest exporter of oil in Africa and has for many years provided cheap subsidised fuel to its citizens.

However, last year, the government allowed the private sector to import and sell fuel products and prices began to rise.

The NLC has reacted each time by calling a general strike, which has twice forced the government to back down.