By Felix Onuah

ABUJA (Reuters) - Nigeria's police minister said the government was considering what steps to take on Friday after a court dropped terrorism charges against separatist leader Nnamdi Kanu on Thursday, although it did not acquit him.

All three judges hearing the case at the Nigeria's Court of Appeal dropped terrorism charges that the government had brought against Kanu, citing that a lower court had no jurisdiction to try the case and that Kanu was abducted and extraordinarily extradited to Nigeria.

It is not clear whether Kanu, who was not in the courtroom for the ruling, has been released from custody.

"Kanu was discharged but he is not acquitted so government is considering the appropriate action to be taken on the matter," Minister of Police Affairs Mohammed Dingyadi told reporters, adding that a decision would be made soon.

Kanu leads the Indigenous People of Biafra (IPOB), which campaigns for the secession of a part of southeastern Nigeria where the majority belong to the Igbo ethnic group. Nigerian authorities have labeled IPOB a terrorist organisation.

(Reporting by Felix Onuah; Writing by Chijioke Ohuocha; Editing by James Macharia Chege and Josie Kao)