Abuja (dpa) – Nigerian President Goodluck Jonathan on Monday announced he would reduce petrol prices by partially reinstating subsidies, a decision that prompted unions to suspend a nationwide strike which was crippling the country. The cost of a liter would be reduced from 140 naira (0.90 dollars) to 97 naira and Jonathan pledged the authorities would ensure that only the new price was being used at petrol pumps. Almost immediately after the announcement, long queues formed at filling stations in the capital Abuja and elsewhere in the country. When the government scrapped subsidies for petrol on January 1, the cost of fuel at the pump more than doubled. The resulting strike in protest at the rising fuel price has cost Nigeria's economy heavily, with some estimates saying billions of dollars have been lost. Several people also lost their lives last week when some of the demonstrations turned violent. Abdulwaheed Omar, leader of the key Nigerian Labor Congress, told a news conference that the strike was being suspended immediately, pending further talks with the government. It was unclear, however, if protesters who had been organizing independently of the main labor bodies would be satisfied by the 30 percent reduction in price, as many had demanded a full return to the 2011 rate of about 65 naira per liter of petrol. Members of one organization, the Youth Freedom Movement, said they would not accept the government's compromise and “will continue to occupy … until the government reverts to the old pump price of 65 naira per liter.” There were also signs that some civil servants were unhappy with the deal reached. However, many were starting to return to work in the capital Abuja. In a nationwide morning broadcast, Jonathan said he had noted “the hardship being suffered by Nigerians,” and said the reduction followed consultations with labor unions, with whom he met over the weekend. The “government will continue to pursue full deregulation of the downstream sector,” Jonathan cautioned, adding however that he would also enact social policies to cushion the blow from the higher petrol prices. The president also used the speech to attack corruption. “Let me assure Nigerians that this administration is irrevocably committed to tackling corruption in the petroleum industry as well as other sectors of the economy,” he said. Unions said they planned to work with the government to fight corruption, as part of the deal to call of the strike, and more talks on the matter were being scheduled. Some protesters have said corruption in Nigeria costs the country heavily, and have urged the government to first tackle graft before going after the fuel subsidies. Corruption is also blamed for the failing infrastructure, which affects all areas of life, including the oil refineries. The refineries are unable to process enough fuel for domestic consumption, forcing Nigeria to import petrol. Political scientist Abubakar Saddiq told dpa that “subsidies from oil and petrol should be thoroughly investigated (to ensure that) monies do not end up in private pockets.” Many citizens in Africa's most populous nation of 160 million people see the subsidies as their only benefit from the country's oil wealth. Despite being the eighth largest oil-producing nation, many Nigerians live in dire poverty. BM ShortURL: http://goo.gl/L7aDJ Tags: Nigeria, Petrol, Strike, Subsidies Section: Latest News, West Africa
