Nigerian police fire on demonstrators
Witnesses spoke of scenes of mayhem as thousands of frightened trade unionists scattered in all directions.
A number of people are said to have been taken to hospital with bullet wounds.
A policeman said he and his dozen or so colleagues had been ordered to open fire because the protesters were on the point of overwhelming them.
The demonstration was called by the Nigeria Labour Congress to protest against plans to end fuel subsidies.
Outrage
NLC head Adams Oshiomhole expressed outrage at the use of live ammunition on peaceful demonstrators, who included fasting Muslims.
"What we have seen today is that the president is not a democrat," he said. "We spoke to him with our placards and handbills ... the president used live bullets ... grenades and tear gas."
And he described the decision which would increase the price of fuel as "obnoxious".
Suspension
While the protests were taking place, the lower house of parliament passed a motion calling for the suspension of fuel deregulation plans.
"In view of the fact that the proposed deregulation is the beginning of another round of hardship for Nigerians, the deregulation should be suspended until the national assembly considers its full implications," said the motion adopted by the House of Representatives.
Correspondents say that ending subsidiies in the fuel marketing sector has been a key demand by creditors who could offer relief on Nigeria's debts, but complete deregulation would be politically unpopular.
But the move has been opposed by trade unions and ordinary Nigerians who see cheap fuel as one of their few benefits as citizens of a major oil producer.
Nigeria owes its creditors more than $30bn. Fuel price increases in the past have led to riots.