Nigerian President Announces Government Austerity

Posted January 7th, 2012 at 7:40 pm (UTC-5)
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Nigerian President Goodluck Jonathan went on television Saturday to promise that the government will share hardship with ordinary citizens, hit by rising fuel costs.

Mr. Jonathan said that everyone must be prepared to make sacrifices. He said the foreign travel of government officials will be reduced to the barest minimum and the salaries will be cut by 25 percent.

The president's address to the nation on the state-run Nigerian Television Authority comes ahead of a planned nationwide strike over spiraling fuel costs. Labor unions have announced indefinite strikes starting Monday.

Prices of gas soared after the government ended fuel subsidies January 1, leading to increased prices of transportation and food.

Angry Nigerians have been protesting in the past week and some of the protest in the capital Abuja have turned violent.

But some economists say the subsidies encouraged corruption.

Nigeria is a large producer of crude oil, but depends largely on imports for fuel because its refineries are in disrepair after years of mismanagement.