Abuja - The Nigerian government has closed down a private television station after it reported that President Umaru Yar'Adua was preparing to resign after a cabinet meeting on Wednesday.

Channels Television quoted the the state-run News Agency of Nigeria (NAN), which vehemently denied it was the source of the story.

Olusegun Adeniyi, spokesman to Yar'Adua said that there was no truth to the resignation story and that it was intended to cause harm to Nigeria.

"Such persons or groups had made it their business to spread baseless rumours and untruths about the president in furtherance of there selfish schemes and ambitions," he said.

Management at the TV station were also arrested.

Rumours have been circulating that a long-standing kidney condition has compromised Yar'Adua's ability to do his job.

He recently spent several weeks in hospital in Saudi Arabia undergoing treatment for the illness.

Yar'Adua refuses to say exactly what is wrong with him, saying his life is in "God's hands." (dpa)