October 12, 2004

BY DULUE MBACHU

LAGOS, Nigeria -- As world oil prices hit new highs, Nigeria's biggest labor federation launched a four-day nationwide strike Monday to protest the rising cost of fuel at home, shutting down huge swathes of Lagos, the country's largest city and its commercial center.

There was no immediate impact on the flow of oil from this volatile West African nation, which is Africa's largest oil producer and the fifth-biggest source of U.S. oil imports.

Union militants smashed car windows to keep people home in Lagos, and the streets were nearly empty of traffic except for soldiers and anti-riot police in armored vehicles. Banks, stores and schools remained shuttered.

''The strike is on. Nigerians are united over this,'' said Owei Lakemfa, a spokesman for Nigeria Labor Congress, an umbrella group of 29 unions.

There was only partial compliance with the strike call in Abuja, the capital, and some other cities, where many shops opened and taxis cruised the streets. But businesses and schools did not open in the northern city of Kaduna, and protesters burned tires in the streets.

The price of crude oil surged to $53.42 a barrel in Europe, with traders expressing concern over possible supply shortages from Nigeria. But Information Minister Chukwuemeka Chikelu and executives at multinational oil companies said the strike had not hurt Nigeria's daily output of 2.5 million barrels.

''Our people are working. There's been no impact,'' said Udom Inoyo at Mobil Producing Nigeria Unlimited, a subsidiary of ExxonMobil, the second biggest oil producer in Nigeria.

Royal Dutch/Shell, which accounts for roughly half of Nigeria's oil exports, said its executive offices in Lagos were mostly empty but its ''oil production and exports are going ahead.''

Union leaders demanded a rollback in last month's jump in the price of gasoline to about $1.50 a gallon from $1.19, the latest in a series of increases from a government push to cut subsidies and deregulate the economy. The hikes set off widespread protests.

AP

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