President of Nigeria, Goodluck Jonathan, said petrol prices would be reduced to 97 naira a litre. Labour unions agreed to suspend mass protests to allow further negotiations with the government.

Tens of thousands took to the streets for strikes over five successive days last week in protest against the sudden removal of a fuel subsidy on January 1 that more than doubled the pump price of petrol to 150 naira per litre from 65 naira.

Jonathan met unions late on Sunday to try and find a compromise to end the strikes, which are due to resume on Monday. He said the talks had "yielded no tangible result" and pledged to continue along the path of removing subsidies.

Suspend street protests
"Government will continue to pursue full deregulation of the downstream petroleum sector. However, given the hardships being suffered by Nigerians, and after due consideration and consultations ... government has approved the reduction of the pump price of petrol," he said in a pre-recorded speech.

Nigeria's main labour unions said they would suspend street protests but strikes that have paralysed Africa's second-largest economy would go ahead pending further talks on Monday.

No protest and no rallies
"President Jonathan is expected to address the nation this morning so labour has asked our members to sit at home today. No protest and no rallies," said Chika Onuegbu, an official at Nigeria's main oil union Pengassan and umbrella labour union Trade Union Congress.

"Labour has also fixed another meeting this morning at Labour House Abuja with the hope that President Jonathan will make the broadcast and labour can then review the situation and hopefully suspend the strike action," he said.

Pengassan previously said it would cut oil output from Africa's largest producer if government talks broke down.

No oil cut
Global oil prices were boosted by Nigeria supply fears late last week and a serious production outage would push them sharply higher, according to traders and analysts.

Several people were killed in clashes with police last week and 600 were treated for wounds, according to the International Red Cross.

source: Reuters