This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 04 ABUJA 001735 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: PGOV PINS EPET ECON NI
SUBJECT: OBASANJO CRITICIZES NLC IN NATIONAL SPEECH JUST 
BEFORE IT CANCELS GAS STRIKE 
 
¶1. (U) On the evening of October 8 President Obasanjo 
delivered a nationally televised speech sharply criticizing 
the Nigerian Labour Congress (NLC).  Obasanjo bitterly 
denounced the NLC's strike threat, but also called on the NLC 
to reach an agreement with the oil marketers (including the 
GON-owned NNPC) mediated by ruling-PDP governors and 
legislators.  Two hours later, the NLC and oil marketers 
reached agreement at that mediation (septels). 
 
 
¶2. (U) The following transcript is taken from the Daily 
Independent, but tracks with the Presidency's text. 
(Begin Text) 
 
 
Fellow Nigerians, 
 
 
It was only after very painful consideration and reflections 
on the state of affairs in our dear country today, that I 
decided to address you all. This national broadcast, the 
second in the last eight days, is evidence of my deep concern 
over the conduct of the Nigeria Labour Congress (NLC) and the 
Government's resolve to ensure that the ongoing reform agenda 
remains on course. 
 
 
Let me reiterate my unwavering commitment to the full 
democratisation of all aspects of our political life, 
including free and open dissent and constructive criticisms 
of the government within the limits of the law. That is, in 
fact, why my government has allowed sometimes protracted 
labour strikes not embarked upon legally and other aspects of 
opposition  to government policies. This government has 
always considered labour as important and therefore consulted 
with it on many national and international issues. It is no 
wonder that in the last four years, the NLC has not organised 
a single strike over wage or salary issues because we have 
been very productive in the interest of the workers.It is 
worthy to note that between 1999 when this government came in 
and 2003, the salary of some workers have been increased 
eight fold, including the recent increase in the civil 
service that would take effect this October. 
 
 
I remain committed to these ideals of an open society. 
However, no government would tolerate lawlessness or the 
attempt by any group of people under any guise to use illegal 
means to take over government or make the country 
ungovernable as the labour leader has promised. I will be 
failing in my constitutional duties to the people of Nigeria 
to allow that to happen. 
 
 
As you are aware, my government has embarked on fundamental 
reforms designed to depart from the waste and unproductive 
exercises of the past and leave lasting legacies for the 
prosperity and improved welfare and well-being of all 
Nigerians. Since 1999, we have gradually but steadily 
embarked on the programme of liberalisation and deregulation 
of the Nigerian economy to promote efficiency and 
effectiveness of service delivery. Most Nigerians and 
certainly all organised key stakeholders in the Nigerian 
economy, including the Nigeria Labour Congress, have endorsed 
the deregulation programme of government. 
 
 
It is as a fitting symbol of our administration's commitment 
to the welfare of workers and in an effort to cushion the 
effects of deregulation that the government provided 80 buses 
to the NLC in 2002. The transliner buses were delivered to 
the Congress for management without government interference. 
It is noteworthy that every step taken to deregulate the 
downstream oil sector has been dogged by, sometimes, 
irresponsible opposition by the Labour Congress. The result 
has been that we took too little steps to achieve no 
meaningful and satisfactory progress. We have tolerated all 
of these in the interest of promoting popular dialogue and 
informed dissent. 
 
 
Let me inform Nigerians that when government first came up 
with the deregulation programme, it was endorsed by the NLC 
and other stakeholders. In fact, the NLC had requested that 
we call it a "liberalisation" programme. It was thus more a 
matter of label than of substance. If we had been successful 
in implementing the deregulation or liberalisation of the 
downstream oil sector as earlier agreed by all stakeholders, 
including labour, we would not have been worrying about the 
periodic and unsatisfactory price-fixing which has led no 
where accept to frustration. The failure to fully deregulate 
or liberalise has also cost Nigerians billions of naira which 
are currently wasted on millions of man-hours in queues at 
the petrol stations. 
 
 
The tens of billions of naira currently being lost in money 
that could have been used to increase capital spending in the 
universities, fund agriculture, repair and rehabilitate our 
roads, invest in education and health, improve security with 
extra police for security of lives and property. Realising 
that the investment of well over $400 million (excluding 
pipelines and depots) in the last six years mostly on Turn 
Around Maintenance (TAM) and repairs had not improved the 
performance of the refineries significantly, government had 
decided that it was unwise to put additional money into the 
repair of the Kaduna and Port Harcourt refineries before 
privatising them. 
 
 
What most Nigerians must know is that the contracts for the 
Turn Around Maintenance for the Kaduna and Port Harcourt 
refineries were awarded with 50% of the cost paid upfront 
before the advent of this administration in 1999. Allow me to 
add that two of the three refinery locations in the country 
today, were built by my administration as military head of 
state. This means that if for no other reason, I should be 
interested in keeping them working. Already, 18 private firms 
have been licensed to build refineries but they have been 
reluctant to go into the industry because of Government's 
price control in the sector. 
 
 
If only 30% of these firms had been able to establish and 
operate private refineries, thousands of jobs would have been 
created and Nigeria would have been in a position to even 
export refined oil products. All these benefits and more have 
been denied to Nigerians by the stop-go approach to the 
deregulation or liberalisation programme, and only a few 
Nigerians are benefiting from the prevailing government 
controlled system. In fact, the NLC 's approach has been 
counter-productive, and inflicted more pains on Nigerian 
workers. Each time there is a small increase of three naira 
or more, transporters have used the opportunity to jerk up 
transportation cost thereby making the ordinary worker poorer. 
 
 
A once-and-for-all total deregulation would have meant a 
once-and-for-all increase in transport cost and the pump 
price for petroleum products. Without doubt, a 
once-and-for-all total deregulation would have resolved the 
problem of availability and thus bring down prices for those 
outside Abuja, Lagos, Port Harcourt and their environs who 
have always paid much more than the official posted price. 
Pump prices arising from the present total deregulation 
would, in reality, amount to a reduction in prices of 
majority of Nigerians. 
 
 
Let me add, that before the marketers have the signal that 
they were fully ready for liberalisation, they sought and 
received government's assurance to repair all necessary 
infrastructure for importing and discharging products. These 
infrastructure were substantially repaired and made available 
by the 28th of September, 2003. 
 
 
Fellow Nigerians, we must move forward in the interest of 
this country. In recent times, especially since the new 
administration was sworn-in in May this year, the NLC has 
constituted itself into an opposition political movement 
rather than a labour organisation to advance the interest of 
its members contrary to the provisions of the law 
establishing it.  The tactical move by the NLC to mislead and 
recruit some opposition political parties is evidence of an 
attempt not only to politicise what otherwise is an economic 
issue, but also to promote its avowed objective of bringing 
down a democratically elected government. 
 
 
This new alliance appears designed to attain power through 
undemocratic means. The leadership of the NLC has engaged in 
series of subversive activities, deliberately misrepresenting 
government policies to the public and its members, and using 
every opportunity to blackmail the government and others who 
hold contrary opinions or views.  Of more serious concern is 
the fact that the NLC leadership is conducting itself as a 
parallel government in Nigeria, and brazenly breaks the law 
of Nigeria regarding the conduct of strikes which stipulates 
a mandatory 15-day notice before embarking on any legitimate 
strike in the interest of the conditions of service of 
workers. 
 
 
During the last strike in June, which a Lagos court declared 
illegal and a contempt of court, the NLC threatened the 
police and threw tear gas at policemen on legitimate duties. 
Even now, in its arrogance and disrespect for law and order, 
it continues to warn and threaten the police. It not only 
enlists the services of other political parties, but also the 
services of hoodlums and drug addicts who are used to harass, 
intimidate, disrupt and destroy the lives and properties of 
innocent Nigerians. Government has sufficient evidence that 
the NLC has provided cash to hoodlums to distribute 
subversive materials and act against the Nigerian state. 
 
 
This cannot be the way that a responsible labour leadership 
should act. Government has thus far tolerated these nefarious 
and criminal activities as a demonstration of goodwill and 
also as part of the nurturing of our nascent democracy. It 
seems, however, that the Government's hands of friendship, 
tolerance and statesmanship are being misinterpreted as 
indication of weakness. This must now stop.  The time has 
come when this government must decide whether it was elected 
by the people to serve the interests of all Nigerians and 
establish a firm foundation for growth, stability, 
development and democracy, or whether it would succumb to the 
clearly misguided and irresponsible leadership of the NLC. 
 
 
What the NLC leadership must realise is that it has no 
mandate from whatever source to mobilise, much less call for 
anti-government action, the Nigerians who are not dues-paying 
members of its affiliate unions. No self-respecting 
government would abdicate its responsibility to the people 
who elected it. And this government will not be distracted 
from the overwhelming mandate of the people of Nigeria. 
Let me therefore use this opportunity to remind the NLC that 
there is an existing law of the Federal Republic of Nigeria 
requiring that labour serves a 15-day notice of intention to 
go on strike, and that this has not been followed in the 
current threats. 
 
 
So far, the NLC has shown a total disdain for our traditional 
institutions and neither consulted with the traditional 
rulers nor with the major organs of our society. Before fully 
exploring the avenues for dialogue, it is already threatening 
innocent Nigerians to stay at home or be visited with mayhem. 
Nothing can further demonstrate the unpatriotic and sinister 
motives of the NLC than the contents of the communiqu at the 
end of its meeting of 4th October in which it not only sought 
to mobilise 'all Nigerians' and not just financial members of 
the NLC to join the strike, but also issued threats and 
warnings to several agencies, including the police, bank 
workers, air travelers and aviation workers. 
 
 
Unbelievably, the NLC betrayed its hidden agenda by calling 
on all Nigerians to boycott the on-going 8th All Africa Games 
holding in Abuja. These unpatriotic acts and attempts to make 
true the NLC leadership's all-time boast to make the country 
ungovernable cannot be allowed to stand. The NLC must 
recognise that it is not a parallel government 
in Nigeria.  Such a position constitutes security threats for 
which government cannot fold its hand. I only hope that the 
leadership of NLC would be wise to retrace its steps and take 
back the Congress to the path of legality and patriotism. 
 
 
Deregulation or liberalisation of the downstream sector means 
that everyone can participate.  If the NLC decides to run its 
own transport company or engage in petroleum importation or 
refining ,it is free to do so and sell to its members and 
whoever it pleases and at whatever price it deems fit. 
 
 
For the millions of law abiding citizens of Nigeria, let me 
assure you of the government's readiness to ensure full 
protection of lives and property. The marketers, I 
understand, have had a very engaging dialogue with the NLC 
and with the men and women of good will as umpires. I will 
expect that this golden opportunity of dialogue will not be 
lost. 
It is my hope that in spite of everything, the NLC can still 
allow reason to prevail and enter into productive dialogue 
with the marketers as midwifed by mediators. 
 
 
I appeal to all Nigerians to remain calm and go about their 
normal businesses without let or hindrance. The Nigeria 
Police and other law-enforcement agents are ready to provide 
maximum protection and security. No one should attempt to 
disrupt the normal transportation either by land, sea or air, 
or try to force the closure of markets, banks and shops. Let 
me also assure all banks and all public and private 
institutions of maximum police protection and security. 
 
 
No one ever said that fundamental and sustainable reforms 
would be easy. Incessant strikes as a way of derailing the 
reforms serve no one any good. Given our bitter experiences 
in the not too distant past, we must not do anything that 
would erode the values and worth of our achievements so far. 
A strike that would disrupt economic, social and other 
activities while imposing heavy costs on the ordinary 
Nigerian and worker in discomfort and inconvenience negate 
the very essence of labour movement.  A strike that would 
cause avoidable deaths, prevent our children from getting to 
school, workers from earning a living, and essential services 
from working in the interest of all cannot be justified. 
 
 
A strike that plans to rely on intimidation, blackmail, 
deceit, thuggery, violence and other coercive methods cannot 
be an expression of democratic practice. A strike that seeks 
to humiliate a nation in the presence of august visitors and 
compromise the dignity of our great country in the eyes of 
the international community is a direct attack on the new 
patriotic spirit that binds the Nigerian people. It will not 
be allowed. Our brothers and sisters from the rest of Africa 
who are participating in the 8th All Africa Games are guests 
within our gates. As Africans, we must protect them as we 
protect ourselves. The NLC obviously does not think this way. 
I want to assure our brothers and sisters of  maximum 
protection and security for as long they are within our gates. 
 
 
While this statement is an appeal, it is also a warning that 
anyone who embarks on an illegal strike or who connives, 
encourages and instigates others to embark on strike, 
intimidate other citizens, disrupt businesses or engage in 
acts of lawlessness and violence would have himself or 
herself to blame. Under no circumstances would this 
democratic government accommodate or tolerate undemocratic 
conducts that would compromise the integrity of our 
democratic values or derogate the liberties of our peoples. 
The full weight of the law would be brought to bear on such 
persons for the maintenance of order and discipline. 
 
 
Finally, fellow Nigerians, let me assure you that our reform 
programmes are on course. We thank the millions of Nigerians 
who have signed on to the reforms and rejected the cynicism 
and unpatriotic conduct of the minority. To move our economy 
and country forward, I have promised Nigerians that it will 
not be business as usual. We are already implementing 
reforms, and invest heavily in infrastructure, agriculture, 
education, health, and industry. To do all of these, we must 
change our ways of thinking and doing business, and the 
deregulation and privatisation of the downstream oil sector 
are important aspects of these reforms. 
 
 
Although the private sector will now be the driving force of 
the downstream sector of the petroleum industry, the 
government would continue to monitor and ensure quality 
control and to help the sector develop in an orderly manner. 
Government regrets some of the short-term pains especially 
for the minority who had been buying fuel at 34 per litre, 
even though we all know that majority of our people would 
gladly buy for N40 per litre if only it is made regularly 
available. I am confident that the medium to long-term 
benefits would more than offset those pains for the 
generality of Nigerians. Liberalisation and deregulation is 
the answer for availability of products at competitive prices 
as our 
experience in the telecommunications sector shows. 
 
 
I will continue to count on your understanding and support as 
we build a new and prosperous Nigeria. I particularly appeal 
to your patriotism with hospitality, especially at this time 
when we are hosting all of Africa. Let us all join hands as 
good hosts. 
 
 
Thank you and may God bless Nigeria. 
 
 
(END TEXT) 
ROBERTS