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Cablegate: Gon Promises Fuel Price Reduction and Labor

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

161602Z Nov 04

UNCLAS LAGOS 002306

SIPDIS

E.O. 12958: N/A
TAGS: EAIR ELAB EPET KDEM NI PGOV
SUBJECT: GON PROMISES FUEL PRICE REDUCTION AND LABOR
SUSPENDS STRIKE


1. (U) On November 15, the GON announced it would
reduce the price of fuel to N49 per liter. Responding
to the promised price reduction, the Labor and Civil
Society Coalition (LASCO) suspended the strike planned
to begin November 16. Nigeria Labour Congress (NLC)
President Adams Oshiomhole told journalists that the
decision was promoted by the price reduction as well as
by last week's court order restraining the NLC from
embarking on the strike. Oshiomhole said the decision
to suspend the strike is subject to change, however, if
the price reduction is not implemented within the next
week.

2. (U) Denja Yakub, NLC assistant secretary, told
Polspec that LASCO suspended the strike to ensure that
the coalition complied with the court order. The court
has not yet ruled on the GON appeal contesting the
NLC's right to strike. Both parties were ordered to
return to court on November 17 to argue their cases.
The court order issued last week restrained the NLC
from striking until a ruling was made in the appeal
case.

3. (U) Although the strike was called off, many
Lagosians decided to remain home today. Vehicular
traffic was much lighter than normal and many workers
did not report to duty. The suspension of the strike
has caused the local business community to give a
collective sigh of relief. Two attorneys who represent
major banks told the Consul General that depositors at
their banks were making massive withdrawals in
contemplation of the threatened indefinite strike.
Firms in other sectors were also bracing for loss or
dislocation of business. We expect Lagos to return to
normal tomorrow.

Browne

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