Contending Issues in the Niger Delta Crisis of Nigeria - Journal of ...

Chapter IX: The Politics and Policies of Oil Deregulation in Nigeria:
Implications and Policy Suggestions
(NLC) and civil society groups launched a series of paralyzing strikes,
with more promise at every increase. As the world's seventh-largest oil
producer teeters on the brink of complete shutdown, President
Olusegun Obasanjo continues to treat union leaders with more
contempt. Although economic reforms may benefit Nigeria's economy
in the long run, the government has undermined its case by ignoring
domestic opposition. Indeed, civil society may be correct to question
the IMF's presumption that privatization and deregulation alone
necessarily lead to poverty reduction.
The most recent boil over of anger over the implementation of the
downstream deregulation policy by the world’s 7th largest oil producer
nation occurred in November/December 2004 (Oduniyi, 2004).
Following a September 23, 2004 increase of Nigeria's domestic retail
oil price by 23%, the NLC in collaboration with the civil society called
on the government to rescind on the increase failing which it would
embark on a strike action. The groups gave the government two weeks
ultimatum at the end of which it said it would embark on a one week
warning strike failing which it would begin an indefinite strike action
(www.newsinformant.com).
And the paralysis did come. A four-day general strike in the West
African giant (which boasts a quarter of Africa's population) and
Africa's oil giant, left the rejoin frozen and pushed world oil prices to a
record level – a harsh reminder that threats to global economic
stability can emerge from relatively neglected quarters. The strike also
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