Nigerian unions call off general strike

By Camillus Eboh

ABUJA (Reuters) - Nigerian unions called off a crippling strike in Africa's top oil producer on Saturday after the government agreed to freeze fuel prices for a year, both sides said in a statement.

The four-day-old general strike had halted most economic activity in Africa's most populous nation, but vital exports of crude oil were not affected.

"The general strike is suspended with effect from midnight," said a joint statement issued by unions and the government.

Earlier on Saturday, the government sweetened its offer of reducing petrol prices by five naira to 70 naira (55 cents) per litre by agreeing to freeze it at that level for a year.

Unions had previously rejected the five-naira reduction, holding out for a 10-naira cut to completely reverse an increase introduced in the dying days of the previous government, which stepped down on May 29.

Unionists said the offer of a 12-month freeze on prices was the deal-breaker, although they were also reassured by the government's agreement to set up committees to examine fuel prices and the controversial privatisation of oil refineries and power stations.

The strike shut down most sectors, including government offices, banks, ports, airlines and big businesses. However, oil shipments were maintained because Western companies replaced key union staff with management.

World oil prices had risen on fears that the strike might further dent supply from the eighth largest oil exporter, where militant attacks have already cut a quarter of capacity.