Sounds like the Nematodes have gotten to your Fig. Sorry. This is supposedly inevitable. Oh well, the leaves are still very nutritious, and great for wraps.

I haven't researched it, but maybe you can combat the bad Nematodes with good ones (they can be ordered).

Here's another Gardenweb Fig thread: http://forums.gardenweb.com/forums/load/fig/msg0202495016357.html Nematodes are discussed here.

I had this problem with an aged fig tree here on the back of the property. After quite a fight with carpenter ants (we won - they left lol) We assumed it a lost cause and gave it a severe pruning last year as a last resort. Tree WAS huge 7x6ft easy, would produce lil green figs then they'd wilt and fall off...with a chainsaw & large pruners, reduced to about a 4x4ft tree again after the other healthy fig trees finished fruiting last season. Now all sturdy branches have grownin again and fruit has already ripened :-) It IS quite a bit smaller now but still producing a large fruit bowl a day, worth of figs :-)