Man awaits fuel at Lagos gas station, 20 Jun 2007

Nigerian labor unions say they are calling off a four-day-old strike that had shut down much of the economic activity in the country.

Labor officials say they made the decision after the government promised Saturday not to raise fuel prices for a year. The government also agreed to cut in half a recent increase in fuel prices.

Unions had originally demanded the 15 percent increase in fuel prices be completely revoked.

The nationwide strike shut down most schools, banks and government offices in Nigeria. Most public transportation and airlines flights were also canceled.

The unions had threatened to shut down Nigeria's water and electricity supplies, as well as oil production, if the strike continued.

Former President Olusegun Obasanjo imposed the increase in fuel prices before he left office last month.

Nigeria is one of the world's biggest producers of crude oil, but it is almost completely dependent on imports of refined fuel. The central government has subsidized fuel for many years - a move that impoverished Nigerians have come to depend on as one of the few benefits they receive from Abuja.

Some information for this report was provided by AFP, Reuters and AP.