Nigerian fuel price protests grow on second day

By Chijioke Ohuocha and Mike Oboh

LAGOS/KANO (Reuters) - Nigerians took to the streets on Tuesday in growing numbers on the second day of protests against a sharp increase in petrol prices, piling pressure on President Goodluck Jonathan to reverse his removal of fuel subsidies.

Africa's biggest oil producer on January 1 scrapped subsidies on imports of motor fuel, which many citizens see as their only welfare benefit, more than doubling the price of petrol to about 150 naira a litre.

Tens of thousands demonstrated in cities across Africa's most populous nation. Tuesday's protests were bigger than on Monday in Nigeria's largest city Lagos and in the capital Abuja and were on par with the previous day in other major cities.

But Jonathan's resolve in the face of the kind of protests that have derailed past attempts to scrap the fuel subsidy showed no sign of weakening.

"The strike is the first true test in policy terms of the Jonathan presidency. They chose the issue and the timing," said Antony Goldman, Nigeria specialist and head of London-based PM Consulting.

"If they prevail, the prospects for reform in other delicate areas - the constitution, oil and gas, revenue - all improve. If the strikers prevail, the administration's credibility is massively damaged. If oil exports are not hit, the government will hope the thing just peters out."

In Rivers state, in the oil rich Niger Delta, the local government said it would cap the price of fuel in the state at 137 naira per litre. Although this is more than double the subsidised price it is the first sign of local government compromising on the free market message pushed by Jonathan.

Thousands gathered outside the labour union headquarters in Lagos and marched to the marina that runs along its wide lagoon. The roads of the normally heaving commercial hub, notorious for its traffic jams, were largely empty.