Strike Threatens Nigerian Oil Production

The world oil situation has already driven prices through the roof. The Nigerian strike helped push the world price over $54, even though there has not been a disruption in the country’s daily export of 2.5 million barrels. If the strike turns much uglier, the markets will surely respond and prices will surge.

Trade unions in Nigeria on Wednesday threatened to extend a three-day general strike which has shut down much of the country and driven world oil prices to a record high.

The stoppage was due to end on Thursday but labour leaders said it would continue if the government used heavy-handed tactics against strikers.

At least two people have been killed in clashes between protesters and police, a modest toll compared with previous strikes, but the unions signalled that they would maintain their momentum.

“The strike is going on and it’s quite effective across the country,” said Owei Lakemfa, a spokesperson for the Nigeria Labour Congress. “We have told the police that if the arrests and harassment continue, we’ll have to extend the strike.”

Oddly, given the impact on world oil prices, the strike was called to reverse steep rises in local fuel prices following the slashing of state subsidies. The government of President Olusegun Obasanjo sought a court injunction on Wednesday to stop the shutdown, claiming it was illegal and unconstitutional to strike for reasons unrelated to working conditions.

But a high court in the capital, Abuja, rejected the request. The Nigeria Labour Congress, an umbrella union body, was delighted. “We cannot be deterred in…

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Anthony Lappé is GNN's Executive Editor. He's written for The New York Times, Details, New York, Paper, The Fader and Vice, among many others. He has worked as a producer for MTV and Fuse. He is the co-author of GNN's True Lies and the producer of their Iraq...