The Nigeria Labour Congress (NLC) has criticized the International Monetary Fund (IMF) for denying responsibility in the recent removal of Nigeria’s fuel subsidy.
The NLC labeled the IMF’s denial as cynical, seeing it as part of a broader IMF and World Bank pattern of pushing restrictive economic policies on developing countries.
In a statement on Sunday, NLC National President Joe Ajaero condemned the IMF for promoting harmful recommendations as growth strategies, which have led to socioeconomic hardship and stagnation in Nigeria and other countries that followed such advice.
At a press conference during the IMF and World Bank Annual Meetings in Washington, DC, Abebe Selassie, the IMF’s African Region Director, described Nigeria’s decision to remove the fuel subsidy as a domestic choice.
“The IMF’s recent statement appears evasive, suggesting Nigeria’s subsidy removal was a ‘domestic decision,’ despite the IMF’s frequent advocacy for subsidy cuts as essential for fiscal health. This denial rings hollow, especially given the IMF’s history of policy influence on developing countries,” the NLC’s statement said.
The NLC expressed alarm over the IMF’s denial, which it believes reflects the harmful policies the IMF and World Bank have imposed on Nigeria.
“The IMF may be attempting to distance itself from the repercussions of these policies, but Nigerians are not deceived. We see the harmful effects of IMF strategies on Nigeria and Africa,” the union asserted. “It is misleading for the IMF to deny responsibility, especially as we have repeatedly warned the government about the negative impact of adopting these policies.”
The NLC also highlighted concerns with the IMF and World Bank’s dismissive stance on the social costs of their policies. While the IMF acknowledges these “significant social costs,” it merely suggests that governments mitigate them through expanded social protections—an approach that, in Nigeria, has resulted in inadequate support like the RICE initiative. According to the NLC, the removal of subsidies and rising prices have made essentials unaffordable, while government safety nets fall short.
NLC argued that the gap between IMF recommendations and Nigerian realities reflects an oversight in the fund’s policy approach. By distancing itself from the subsidy removal, the IMF appears inconsistent, advocating austerity while avoiding accountability for the resulting hardships.
The NLC further noted that this undermines the IMF’s credibility and casts doubt on the sincerity of its economic guidance, particularly as the IMF claims Nigerian autonomy over policies, despite its historical influence often leading to challenges and hardship.
The NLC emphasized that Nigeria and other developing nations must reclaim economic autonomy, resisting externally imposed policies that fail to account for local needs and contexts.
“The IMF’s denial of involvement in Nigeria’s subsidy removal lacks sincerity, given its history of recommending austerity measures. We hope Nigerian leaders recognize that, when crises occur, the IMF and World Bank will distance themselves, leaving the government to bear the burden,” the statement continued. The NLC urged Nigeria to adopt policies that address the true needs of its people, prioritizing growth, social welfare, and equity over austerity measures that deepen economic and social challenges.
“We urge the IMF and World Bank to stop stifling our nation, so we can breathe freely. They have become a major obstacle to our progress, and we may soon demand their complete withdrawal from Nigeria, as their policies consistently undermine our economy, harming both the people and the country,” the NLC declared.
The NLC called on the IMF to act transparently and responsibly, stating, “Honesty and transparency are the foundation of the IMF’s so-called institutional integrity.”
