* Subsidy removal more than doubles fuel price

* Court order seeks to restrain unions from striking

* Government says it will save $6 bln this year

* No major impact expected on oil exports from strike

Nigerians angered by a government decision to remove fuel subsidies protested in the capital on Friday and unions said they were determined to carry out a nationwide strike planned for next week.

The government has said it will not budge on the decision to deregulate petrol importation, which has led to pump prices more than doubling to 150 naira ($0.94) per litre from 65 naira, prompting demonstrations across the country.

Hundreds marched through the streets in Abuja carrying banners saying "no to fuel increase" and "we subsidise government, they want to deregulate us". They were supported by some former government ministers and flanked by soldiers.

"We will continue to fight this government until it does what is right," Nasir el-Rufai, minister of the federal capital territory between 2003-2007, told protesters in Abuja.

"What is right is that they should cut down on their expenses and ensure that our refineries work, so that we can buy petrol not at 65 naira but 40 naira (per litre)."

Nigeria's largest trade union reiterated its threat to begin an indefinite general strike from Monday, including by workers in Africa's largest energy sector. Industry sources do not expect strikes to significantly impact crude exports.

"The strikes, mass rallies and protests will go on as scheduled. The National Labour Congress (NLC) advises the Jonathan administration to listen to the people or face their justifiable wrath," an NLC statement said.

The government won an industrial court order restraining Nigeria's two main union confederations, the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), from striking. Only government lawyers were present in the court and the unions dismissed its legitimacy.

COURT ORDER

"The supporting affidavit discloses that economic activities within the country will be adversely affected as will the health and safety of the citizenry if the impending strike is allowed to hold," said Justice Babatunde Adejuwon on Friday.

"The defendants (NLC and TUC) are hereby restrained from embarking or compelling other persons to embark on a strike action", said the judge.

NLC said in a statement Nigerians should disregard any such injunctions and "ignore this childish ploy and rumour; there is no going back on next week's protests and shutdown."

The inspector general of police, Hafiz Ringim, said in a statement Nigerians had the right to engage in peaceful protest to seek to influence government policy and promised "adequate security for life and property" if the strike goes ahead.

The Abuja protests mirrored similar demonstrations this week in cities around Nigeria, where most people live on less than $2 a day and view cheap fuel as the only benefit they get from living in an oil-rich state.

Nigeria produces more than 2 million barrels of crude oil per day but has to import nearly all its fuel because its refineries are in disrepair due to decades of mismanagement and corruption.

Nigeria's fuel regulator announced the end of the subsidy on Sunday as part of efforts to cut government spending and to weed out corruption in the downstream oil industry, which it hopes will encourage more foreign investment in local refining.

Economists say the subsidy encouraged corruption and waste and handed over billions of dollars of government cash to a cartel of wealthy fuel importers.

The government estimates it will save 1 trillion naira ($6.21 billion) this year with the elimination of the subsidy.

Source: Reuters