Nigeria's trade unions looks set to call a general strike over recent rises in petrol prices and value-added tax.

Long queues are already being reported at petrol stations across the country after two oil and transport unions began striking on Friday.

The BBC's Mannir Dan Ali in Abuja says there is anger at economic decisions taken in the last days of former President Olusegun Obasanjo.

He says the next few days could be the first real test for the new leader.

Talks between the Nigeria Labour Congress and the new government have broken down.

A two-week union deadline expires on Monday for a reversal of a 15% rise in fuel prices and a VAT increase from 5% to 10%.

The union also wants Nigeria's new President, Umaru Musa Yar'Adua, to reverse Mr Obasanjo's sale of two of the country's refineries.

"The hardship we are facing in the country is too much," one Nigerian in Abuja told the BBC.

One labour official told the BBC that the NLC leaders' meeting was likely to endorse a strike.

Nigeria is Africa's largest oil producer but attacks and kidnappings of foreign oil workers by Niger Delta militants have cut production.

Despite the oil wealth, most Nigerians live in poverty.