The Nigeria Labour Congress (NLC) has accused the International Monetary Fund (IMF) and the World Bank of influencing the Nigerian government’s decision to remove the petrol subsidy, highlighting the negative impact of this policy on the nation’s economy and its citizens. In a statement issued by NLC President Joel Ajaero, the organization challenged these international institutions to “remove their knees from our necks so that we can breathe as a nation.”
The NLC’s statement criticized the IMF and World Bank for their history of advocating for harsh economic policies that have often led to hardship in developing countries. Ajaero described these policies as “a poisoned chalice,” noting that they are frequently presented as growth strategies but often result in socioeconomic stagnation and hardship.
During the recent IMF and World Bank Annual Meetings, the IMF’s African Region Director, Abebe Selassie, referred to the subsidy removal as a “domestic decision,” a claim the NLC describes as “subterfuge and evasion.” According to the NLC, this denial disregards the significant influence the IMF has in shaping economic policies in developing countries like Nigeria, where past governments have often implemented IMF recommendations.
The NLC expressed concern over the IMF’s attempt to distance itself from the economic consequences of subsidy removal, arguing that such actions highlight the inconsistencies in the IMF’s advice to developing nations. The statement pointed out that while the IMF acknowledges the significant social costs of its policy recommendations, its suggestion for mitigating these hardships through expanded social protections is inadequate and fails to address the real issues faced by Nigerians.
The NLC emphasized the need for Nigeria to reclaim its economic sovereignty and resist externally imposed policies that do not align with the country’s needs. The organization called for economic policies that prioritize growth, social welfare, and equity over austerity measures that exacerbate economic distress and social unrest.
In closing, the NLC warned that the IMF and World Bank’s continued influence could lead to greater economic challenges, urging Nigerian leaders to pursue policies that genuinely benefit the country’s citizens. The NLC reiterated its demand for the IMF and World Bank to cease their detrimental influence on Nigeria’s economy, underscoring the need for economic autonomy to secure a sustainable future for the nation.
