Nitel's Ongoing Strike Bites Harder

In this report, Efem Nkanga, examines the recent strike action embarked upon by employees of the Nigerian Telecommunications Limited (NITEL), the negative impact the strike has had on the economy and the need for the Federal Government to declare telecommunication a critical sector of the economy.

The ongoing industrial action of employees of NITEL has continued to take its toll on the economy almost two weeks after the commencement of the strike, which was attributed to disagreements between Transnational Corporation, owners of NITEL and NITEL employees over the payment of salaries and emoluments.

The strike action, which has led to the shut down of SAT-3, the underwater communication cable link connecting Nigeria and many African countries to the rest of the world through Europe, has led to communication challenges that has continued to take its toll on the economy. Affected by the strike action are critical sectors of the economy spanning oil and gas, banking, the seat of government, security service, media houses, private telecoms operators (PTOs) and telecoms companies etc. Major conglomerates like Total and Shell are said to have been seriously affected by the strike action. Though NITEL is known for rendering epileptic services, it has a golden asset - SAT-3, which delivers capacity that links Nigeria and other participatory members of the project to major internet backbones across Europe, Asia and the Americas. The SAT 3 cable project connects Africa with Europe and is projected to be a major revenue earner for NITEL. THISDAY gathered that NITEL, which spent about $45 million in 2002 to co-own the facility, which runs through the Atlantic Ocean linking countries along the route, makes only about N100million as revenue every month while its salary structure on a monthly basis is about 500 million. It is this shortfall between the revenue it earns and its liabilities that has been its albatross.

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Bakers may go on strike over flour price

WILL bread and other flour-based products cease to be regular staples on the tables of most Nigerians? Will the soaring price of flour consign such food items only within the reach of the financially well-heeled?

How these posers will be resolved will depend whether the Association of Master Bakers and Caterers of Nigeria makes good its threat to shut down its bakeries should flour millers refuse to halt their plans to increase the price of flour in the next seven days.

Briefing the media yesterday in Lagos, President of the association, Chief Bayo Folarin, stated that the association noted with dismay the recent decision of some flour millers to increase the price of 50kg bag of flour from N4,675 to N5,125.

Folarin wondered why the flour millers were not willing to bring down the price of flour even after the price of wheat had reduced greatly at the international market.

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Although bread will probably still be availabe, if this strike does come into effect, bread will be hard to find and very expensive for Nigerians. The nearly 10% increase in price of flour is very significant, and using the threat of a strike should be effective in reversing this decision if it is not made for good reason. The opinion of the flour producers has not been exposed, however, and it will be interesting to see what the explanation of this increase is.

Strike may Shut down Water and Electricity

As the nationwide strike enters its third day the NLC, TUC and the Joint Action forum (JAF) in a press release yesterday said water and electricity may be shut down.

"The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) again commend the generality of the Nigeria people for observing the general strike. The level of compliance, mass support and participation has remained appreciable across the 36 states and the Federal Capital territory, in all sectors of the economy and in all spheres of life.

In particular, wecommend the peaceful conduct of workers and other members of the public during the strike, pickets and other protest activities in various parts of the Country.We also commend the manifest civility demonstrated by the Police in the
ongoing general strike/mass protests. This is a marked departure from the excessive high-handedness which Police had displayed in the past.

We also condemn the reported deployment of officers and men of the Army and Navy to operate fuel depots and other purely civil infrastructures for which they have no mandate. Over all, the NLC and TUC remain disappointed by the apparent indifference of the Federal Government to the popular wishes of the people by returning the price of petrol to N65 per litre."

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Nigeria's people have been very peaceful in their demand for lower oil prices, but the government has been unresponsive and has instated military replacements. The fact that a democracy such as Migeria does not listen to its citizens does not reflect well on their political tact.
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