Nigerian unions dug in for a long battle with the government on Friday after the collapse of talks on the third day of a general strike over fuel prices.
Unions threatened to extend the strike, which has already crippled most sectors of the economy, to essential services such as water and power.
Authorities in Africa’s biggest oil producer said they would no longer turn a blind eye to illegal union tactics such as blockades and harassment of people who wanted to work.
Oil officials feared an extended protest could lead to a shut down of oilfields and tanker terminals, which have so far survived the protest in the world’s eighth largest exporter.
Talks with the government broke down shortly before dawn on Friday as unions insisted on the reversal of a 10-naira (8-cent) increase in the price of petrol.
The government stuck to its offer to reduce the price by five naira.
Informal contacts continued, but neither side appeared willing to give ground.
“We expect before Monday this issue will be resolved, otherwise the strike continues,” said Abdulwahed Omar, head of the Nigeria Labour Congress, an umbrella union body.
Brent crude oil futures rose 95 cents to $71.17 a barrel, partly on fears of further disruptions in Nigeria, where militant attacks on oil facilities in the Niger Delta have already curbed output by a quarter.
The dispute has ended a honeymoon for newly inaugurated President Umaru Yar’Adua, who inherited the highly unpopular price increase from his predecessor, Olusegun Obasanjo, when he took office on May 29.
Streets in the central business district of the main city Lagos were deserted, but for a few small groups of gangsters and street hawkers selling consumer goods.
Government offices and most private businesses, including banks and markets, were closed. Hospital patients left their beds to visit traditional healers because doctors were on strike.
TERMINALS LOADING
Most oil workers complied with the strike order, but oil companies maintained exports by replacing union staff with management.
“So far we don’t have any problem. All our terminals are loading,” said Aminu Baba-Kusa, head of crude oil marketing at state company Nigerian National Petroleum Corp.
Contingency plans could keep plants operating for a matter of days, but companies would be forced to begin closing them down if the strike extended much beyond a week, industry sources said.
Unions issued a statement threatening to interrupt power and water supplies unless the government gave in.
Mike Okiro, acting inspector-general of police, said after a meeting with the president: “My men have been instructed to arrest any group of labour activists or leaders trying to shut down any public utilities.”
Opposition party Action Congress urged Yar’Adua to back down.
Many Nigerians supported the strike because most lived in poverty and the fuel price increase had raised prices of most basic goods. They viewed fuel subsidies as one of the few benefits they received from a notoriously corrupt government.
The general strike was preceded by a separate stoppage by road tanker drivers, which caused a nationwide fuel shortage that has strengthened the unions’ hand.
Public transport collapsed and most filling stations no longer had fuel to sell.