A separatist militia group in southern Nigeria says the government has until tomorrow to release its leader, saying that if he remains held for treason it will launch wide attacks on oil companies and the government.

A Nigerian rebel leader claimed tonight he had reached a peace deal that would bring an end to fighting in the oil rich south that has helped push up world fuel prices.

Insurgents in Nigeria’s southern Niger Delta will begin “a full-scale armed struggle” to wrest control of the region’s oil riches from the government on Friday, a rebel spokesman said today.

Oil giant Royal Dutch/Shell has evacuated two platforms in Nigeria’s southern region, following clashes between troops and militia fighters.