Nigerian unions ready for compromise to end strike

LAGOS, June 23 (Reuters) - Nigerian unions said they are ready for a compromise to resolve a general strike that has hobbled Africa's top oil producer, raising hopes of a quick end to the dispute when talks resume later today.

''We expect flexibility from both sides. We are optimistic that things will change before Monday if the government bends a little backwards,'' Nigeria Labour Congress (NLC) President Abdulwahed Omar told Reuters.

''If government makes an acceptable offer, we will suspend the strike and work can resume on Monday,'' Omar said.

The unions had asked Nigerians to prepare for a long battle with the government after talks to end the four-day strike over a 15 percent increase in fuel prices collapsed yesterday.

Unions had threatened to extend the strike, which has hit most sectors of the economy, to essential services like water and power unless the government gave in. The authorities responded by threatening tougher measures to break the strike.

Negotiations ended in a stalemate after unions insisted on the reversal of a 10-naira (8-cent) rise in fuel prices, while government stuck to its offer of a 5 naira cut. Neither side seemed willing to yield an inch.

But the NLC, an umbrella union body, said it is now willing to shift ground when talks resumed and expected the government to reciprocate.

Asked what an acceptable offer is, Omar said: ''If they come down to 67 naira (per litre), that will be acceptable.'' The government had raised the price per litre to 75 naira and has so far said it was only willing to cut it to 70 naira.

Oil production and exports from the world's eighth biggest exporter, which have so far been spared, could be disrupted if the protest drags into next week, industry officials said.

Contingency plans can keep plants running for a number of days, but companies will be forced to start closing them down if the strike extends much beyond a week, industry sources said.

Streets in the largest city of Lagos and the capital Abuja remained deserted today, while most private businesses and markets were still closed.

Public transport was also non-existent and most petrol stations had no stock thanks to a separate strike by road tanker drivers, which caused a nationwide fuel scarcity that has strengthened the unions' hand.

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.

REUTERS SR VC2126