16 January 2012

Follow Up: Nigeria Fuel Subsidies

Following the removal of fuel subsidies that led to a dramatic and instant increase in the price of fuel and food, Nigeria has seen protests (pictured above), strikes and violence. President Goodluck Jonathan, boxed into a corner, has partially removed the fuel subsidies:
Nigerian unions have suspended their crippling week-long strike, news agencies report, after Goodluck Jonathan, Nigeria’s president, cut petrol prices by 31 per cent on Monday and promised to investigate oil sector corruption.

Unions had called the strike after the removal of fuel subsidies. “In the past eight days through strikes, mass rallies, shutdown, debates and street protests, Nigerians demonstrated clearly that they cannot be taken for granted and that sovereignty belongs to them,” Abdulwahed Omar, president of the Nigeria Labour Congress (NLC), said during a press conference. “Labour and its allies formally announce the suspension of strikes, mass rallies and protests across the country.” It remains unclear whether the suspension of the strike is conditional.
It is unclear if the partial reinstatement of the subsidy will quell protests.

3 comments:

EcoTretas said...

You might like to take a look at where Nigeria stands in fuel prices here:

http://ecotretas.blogspot.com/2010/11/world-energy-outlook-2010.html

Les Johnson said...

Not surprised. Every few years, the government raises the prices of gasoline, a strike ensues, then the governemnt rolls back the prices 60-75%. Prices are still higher than they were before, but everyone claims victory, and moves on.

As mentioned in EcoTretas link, gasoline tourism is popular in Nigeria too. Trucks from Ghana, Niger andthe Cameroons cross the border, and buy Nigerian subsidized fuel.

I have lived in both Nigeria and Iran. The fuel subsidy is deeply entrenched in both countries, but non more so than Iran. Nigeria is slowly weaning itself off, through these types of actions.

In my opinion, that is what will finally topple the mullahs in Iran, when the cost of subsidies are no longer sustainable.. Or start a theatre wide war. One or the other.

EliRabett said...

C Venezuela and Eli also seems to remember Iran. This is another of those sun also rises things

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