VZCZCXRO8512
PP RUEHMA RUEHPA
DE RUEHUJA #1278/01 1691549
ZNR UUUUU ZZH
P 181549Z JUN 07
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 9923
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHWR/AMEMBASSY WARSAW 0380
RUEHCD/AMCONSUL CIUDAD JUAREZ 0381
RUEHOS/AMCONSUL LAGOS 7166
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF LABOR WASHDC
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEKDIA/DIA WASHDC
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK

UNCLAS SECTION 01 OF 02 ABUJA 001278 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR DRL, AF/W 
DOL FOR SUDHA DALEY 
DOE FOR CAROLYN GAY 
 
E.O. 12958: N/A 
TAGS: PGOV ELAB NI
SUBJECT: NIGERIA: LABOR TO COMMENCE NATIONAL STRIKE JUNE 20 
 
REF: ABUJA 1155 
 
ABUJA 00001278  001.2 OF 002 
 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1. (SBU) SUMMARY.  Representatives of the Nigeria Labour 
Congress (NLC) and the Trade Union Congress (TUC) announced 
on June 18 that they will call on member unions to initiate 
an indefinite national strike beginning at midnight on June 
¶20.  Talks between the GON and the union confederations ended 
in a deadlock on June 15 as both NLC and TUC told Poloff the 
GON was unwilling to negotiate on any of the four points in 
the confederations' 14-day ultimatum (reftel).  A National 
Union of Petroleum and Natural Gas Workers (NUPENG) 
representative told Pol/Econoff that NUPENG plans to 
participate in the strike as well and that he expects the 
strike to impact production, distribution and marketing in 
the oil sector.  Mission Nigeria will continue to report 
information as it comes in septel.  END SUMMARY. 
 
¶2. (SBU) Nigeria Labour Congress (NLC) General Secretary John 
Odah and Trade Union Congress (TUC) Senior Assistant General 
Secretary Dan Uhumangho confirmed that both confederations 
 
SIPDIS 
will ask their member unions to commence an indefinite 
national strike at midnight on June 20 to protest a lack of 
action by the GON in response to the confederations' 14-day 
ultimatum issued on May 31 (reftel).  The ultimatum called on 
the Yar'adua administration to: 1) rescind the fuel price 
increase announced by former President Obasanjo on May 26 
from 65 to 75 Naira per liter, (2) rescind the recent VAT 
increase from five to ten percent, (3) reverse the sale of 
the Port Harcourt and Kaduna refineries and (4) implement the 
15 percent salary hike for public servants in effect from 
January 2007.  Odah and Uhumangho both told Poloff that the 
June 15 meeting with the GON had ended in a deadlock and that 
the GON had been unwilling to negotiate an agreement on any 
of the four labor demands.  (NOTE:  Given that the new 
administration has not yet appointed an Energy Minister, 
Secretary to the Government Baba Gana Kingibe has been 
 
SIPDIS 
negotiating for the GON.)  Odah told Poloff there is another 
meeting scheduled with the GON on June 21. 
 
¶3. (SBU) Pol/Econoff spoke to National Union of Petroleum and 
Natural Gas Workers (NUPENG) General Secretary Elijah 
Okougbo, who confirmed that NUPENG plans to participate in 
the strike.  According to Okougbo, he expects the strike will 
impact production, distribution and marketing in the oil 
sector.  COMMENT.  Mission notes that in some previous 
strikes, NUPENG and Petroleum and Natural Gas Senior Staff 
Association (PENGASSAN) have exempted some essential 
personnel, to allow most oil production and exports to 
continue.  It is unclear whether this strike will be handled 
in the same manner.  END COMMENT. 
 
¶4. (SBU) The strike is expected to compound the domestic fuel 
crisis which began on June 15, when members of the 
Independent Petroleum Marketers Association of Nigeria 
(IPMAN) embarked on a strike in protest of the petroleum 
price increase.  Gas stations across the country have begun 
to run out of fuel and fuel lines reappeared over the 
weekend.  Nigerian news has reported fuel prices in Port 
Harcourt reached 130 Naira per liter (well above the 
government increase to 75 Naira per liter). 
 
¶5. (SBU) In a meeting June 14, Bashir Borodo, the head of the 
Manufacturer's Association of Nigeria (MAN) told Poloff that 
his organization concurs with labor's goals of reversing the 
fuel price hike and the VAT increase.  However, MAN 
disapproves of the strike tactic and instead plans to raise 
its concerns with the government through dialogue.  Borodo 
opined that the sudden VAT and fuel price increases are 
undemocratic, as they were not approved by the National 
Assembly, despite the Assembly's constitutional powers with 
regard to taxation and the federal budget.  He also pointed 
out that manufacturers are hit hard by increased fuel prices, 
as transport of their products is already often 30-40% of the 
cost of production. 
 
ABUJA 00001278  002.2 OF 002 
 
 
 
¶6. (SBU) COMMENT.  Few issues exist in Nigeria that have 
historically carried the weight and ability to unite that 
fuel prices do.  With most Nigerian businesses depending on 
cheap domestic fuel to fill their generators (necessitated by 
the lack of electricity), the increase has immediate impact 
on business's bottom line.  Although it remains unclear what 
impact the national strike will have on oil exports, the 
impact on domestic fuel supply (given the shortages already 
caused by the IPMAN strike) could cause a near shutdown of 
Nigerian domestic industry, including gray market traders and 
small businesses which function independently and don't 
generally participate in strikes.  END COMMENT. 
CAMPBELL