ABUJA, Sept 22 (Reuters) - Nigeria's main labour unions will
begin an indefinite strike from Monday to protest an increase in
power and petrol prices, the leader of the body said, after a
meeting with the government two weeks ago ended in a deadlock.
The Nigerian Labour Congress, which represents millions of
workers across most sectors of Africa's biggest economy,
including parts of the oil industry, plans to embark on a
general strike starting next week, leader Ayuba Wabba said.
A reversal of the petrol and power price hikes would avert
the strike, Wabba said in a statement.
The government has not yet responded to the strike plans.
Nigeria cut costly subsidies this month to allow the petrol
price to move with the market and hiked the power tariff.
President Muhammadu Buhari has said the increases were crucial
because the country could no longer afford the subsidies.
The country has been under pressure for reforms from
international lenders such as the World Bank to qualify for
budget support loans after the novel coronavirus triggered an
oil price crash that slashed the government's income.
Cheap fuel prices have long been seen by many in Nigeria as
a benefit of living in an oil-producing country. Previous
attempts to eliminate subsidies were scuppered after riots
ensued.
The unions said the increase was ill-timed because the
coronavirus pandemic had created economic hardship, with
businesses forced to cut jobs. A recession also looms after the
economy contracted in the second quarter.
Nigeria has been struggling to boost revenues to fund its
record high budget after a crash in the price of oil, its main
export. In February, the government raised the VAT to 7.5% from
5% to boost tax revenues, seen as among the lowest in the world.
The unions said the hike would worsen inflation, which is in
double digits, and could erode a recently agreed national
minimum wage. The central bank, in an unexpected move, on
Tuesday cut interest rates to try to stimulate growth.