In a sharp rebuke, the Nigeria Labour Congress (NLC) has criticised the International Monetary Fund (IMF) for denying involvement in Nigeria’s recent removal of petrol subsidies, labelling the IMF’s stance as evasive and emblematic of a history of harmful economic policies pushed onto developing nations.
During the IMF and World Bank Annual Meetings in Washington, D.C., Abebe Selassie, IMF’s African Region Director, described the Nigerian government’s subsidy removal as an “internal decision.”
However, NLC National President Joe Ajaero countered, asserting that the IMF’s statements ignored the institution’s significant influence on the country’s economic policy-making. He accused the IMF of advocating austerity measures disguised as growth strategies, which, he claimed, have only led to socioeconomic stagnation and hardship across Nigeria.
“The IMF’s recent statement dismissing responsibility over Nigeria’s subsidy removal is disingenuous, they frequently champion subsidy cuts for ‘fiscal sustainability,’ yet sidestep accountability for the economic turmoil their policies create.” He stated.
NLC expressed increasing alarm over IMF and World Bank policies, which, it stated, have left Nigerians grappling with soaring prices and insufficient social support. The Congress highlighted how policies endorsed by these institutions undermine Nigeria’s economic sovereignty and impose austerity measures that do not align with the needs of the populace.
In its response, NLC stressed the need for Nigeria to reclaim economic control and prioritise policies that genuinely foster growth, social equity, and public welfare. The Congress urged the IMF and World Bank to respect the unique economic challenges facing Nigeria and warned against the ongoing impacts of externally imposed austerity.
“We urge the IMF to exhibit transparency and own up to the impact of its policies, rather than disowning them when crises emerge,” NLC said, adding that Nigeria may eventually call for the IMF and World Bank to exit the nation if their policies continue to jeopardise the economy.
The NLC’s strong statements signal a growing tension over economic sovereignty as Nigeria’s citizens and government grapple with the fallout from subsidy removal and the rising cost of living.
