Unions threaten to cut Nigerian oil production

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Unions threaten to cut Nigerian oil production

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Four days into Nigeria’s general strike, the prospect is that the country may be exporting no oil come Sunday.

The main oil union said it would shut down production if the government did not backtrack and restore fuel subsidies.

Tens of thousands of people have again been in the streets to protest at a more than doubling of the price of petrol and diesel.

While much of the production is automated and Nigeria has crude oil in reserve the effects will not be crippling, but the strike is costing the economy over 600 million dollars a day according to the central bank governor, and a drop in production could have a big effect.

Such is the importance of oil to the economy any disruption in the sector might trigger a more muscular response from the authorities, with the army being brought in to maintain supplies, for example.