(Image Source: Alamy)

BY CHARLES MCKEAGUE

ANCHOR MEGAN MURPHY

A potential major shutdown in Nigeria.  Thousands have taken to the streets to protest the government’s removal of a key oil subsidy. Fox News has video on the ground in the capital city of Abuja.

“Day three of the nationwide strike that sent tens of thousands of people into the streets for protests like this one in the capital city. Rising fuel costs have sparked the unrest.” (Fox News)

In less than two weeks - the price of petrol has doubled to about .80 euros a liter.  Workers are demanding - the government return oil to subsidy prices of about .40 euros a liter. The BBC says the ramifications of a prolonged worker strike would be disastrous.

“If the strikers are successful in hindering oil exports, not only will it bring the countries economy to its knees, it will heavily affect global oil prices.”

Many Nigerians say they feel like they have no choice.  CNN has their perspective.

“But for most Nigerians living on $2 a day, the price of reform is unbearable. … And most Nigerians believe the vanishing fuel subsidies will only end up lining the pockets of politicians, not securing their country's future.”

According to the AFP, the Nigerian government says the move helps clear $8 billion in savings -- which it says it can use for infrastructure. Voice of America reports the subsidy was about the only thing Nigerians had going for them - but it wasn’t exactly squeaky clean.

“...the fuel subsidy was one of the few benefits [Nigerians] received from the country's oil wealth. [But] some economists called the subsidy corrupt and wasteful, saying it encouraged smuggling into neighboring countries where fuel was more expensive.”

It all comes back to the U.S.,  which is the largest importer of Nigerian crude oil. CNBC says only three days in - and the U.S. is feeling the pinch.

“This major oil exporter is also of grave importance to the U.S. oil market.  About 43% of their exports go to the U.S. ... That is why we are seeing such an impact here in the U.S.” 

The AFP reports the two sides are keeping negotiation open - with major labor union leaders expected to meet with the president Thursday at 1600 GMT.