Fuel strikes threaten Nigeria's oil sector

Nigeria's oil sector will suffer if the government doesn't consider restoring the fuel subsidy, a union leader said. Nigerian President Goodluck Jonathan at the beginning of the year scrapped a fuel subsidy in place for nearly 40 years. That decision sparked mass protests in the country as petrol prices at service stations skyrocketed. Bayo Olowoshile, secretary-general of oil union Pengassen, said production and exports could suffer from strikes unless Jonathan's government acts. "We had hoped the government would bow down, but that does not seem to be its line of action," Olowoshile was quoted by the Platts news service as saying. The report said banks and other services, including petrol stations, were closed this week because of strikes and protests. Nigeria is a major oil producer in Africa. Royal Dutch Shell shut down some of its operations in the country because of oil spills but said its work wasn't yet impacted by nationwide strikes. Levi Ajuonuma, a spokesman for state-owned Nigerian National Petroleum Corp., was quoted by Platts as saying there's been no disruptions so far. "There has been no impact on oil production for now," he said. The government said ending the subsidy would save billions of dollars.