AFRICA/NIGERIA - OIL STRIKE OVER AFTER AGREEMENT OVER PRICE. CHURCH CALLS FOR MORE TRANSPARENCY IN FUEL INDUSTRY MANAGEMENT

Tuesday, 8 July 2003

Lagos (Fides Service) – The oil strike in Nigeria against rising prices which had brought the country to a standstill, is over. On July 8, 6am local time, the government announced that the price would be lowered to 34 naira (about 25 Euro cents) per litre. The strike was declared by the main trade unions after the government’s decision to increase the price of fuel to 40 naira. The strike started eight days ago with barricades in the country’s financial capital Lagos. Disorder followed in various cities and according to local sources at least ten people were killed.
“This problems surfaces regularly almost every year” a local source tells Fides Service. The price of fuel is controlled: the government pays the difference between the effective price and the selling price to the public, the latter being about one quarter of the price to the public. However because of the present economic difficulties in Nigeria the government feels forced to review its policy, provoking social protests”.
On July 4 the Justice, Development and Peace Committee of the Catholic Bishops’ Conference issued a statement on the increase in fuel prices in which it recalls the motivations given by the government: money saved will be used for better maintenance of the country’s refineries; fuel smuggling to neighbour countries where prices are higher will stop; the government will have more money to spend on improving basic structures and thereby improve Nigerians’ standard of living.
Since large sums have already been assigned for refineries maintenance, the JDPC asks if it would not better to verify the effective use of these funds, instead of asking for more. The Commission says also that the phenomenon of fuel smuggling should be faced with other measures such as more control on frontiers. Lastly the Catholic Committee calls on the government to “ensure that those licensed to build new Refineries complete the work within one year, or have their licences withdrawn and the money paid for them forfeited.” LM (Fides Service 8/7/2003 EM lines 32 Words: 388)


Share: