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PORT HARCOURT, Nigeria (Reuters) - The prolonged absence of Nigeria's president, who is in hospital overseas, has stalled a federal amnesty programme and forced former rebels to rethink their participation, community leaders said.

Ex-rebel commanders and local activists will decide on Tuesday after a three-day meeting in Bayelsa's capital Yenegoa whether to continue participating in the programme, which aims to rehabilitate former militants in the oil-rich Niger Delta.

The former militant leaders at the meeting include Government Tompolo, Eris Paul, and Ebikabowei Victor Ben, who each at one time commanded hundreds of loyalists.

"Yar'Adua's absence has shut down virtually the entire country, not just the post-amnesty package for the ex-militants," said Chris Ekiyor, president of the ethnic rights group the Ijaw Youth Council.

"We have not been comfortable with contents of that (post-amnesty) package. So right now we are looking into the entire package in our ongoing meeting in Yenegoa," he added.

Thousands of militants last year handed over their weapons in return for Yar'Adua's promise for clemency, monthly stipends, education, job opportunities and investment in the Niger Delta.

OIL PRODUCTION

Violence has subsided in the Niger Delta as a result, allowing some oil companies to repair damaged facilities and boost production to around 2 million barrels per day.