KEY POINTS
- NLC criticized IMF for denying role in subsidy removal.
- NLC calls IMF, World Bank policy advice “harmful mischief.”
- Subsidy removal worsens Nigerians’ access to essential goods.
The Nigeria Labour Congress (NLC) on Sunday criticized the World Bank and the International Monetary Fund (IMF) for downplaying their influence in Nigeria’s recent fuel subsidy removal, calling the claim that it was a “domestic decision” misleading.
IMF denies involvement in Nigeria’s subsidy removal decision
In a statement, the NLC described the IMF’s stance as “cynical” and accused it of denying responsibility for Nigeria’s removal of the petroleum subsidy. “The IMF and its ‘cousin in economic mischief,’ the World Bank, have a longstanding pattern of recommending harsh economic policies to developing nations,” said NLC President Joe Ajaero.
NLC claimed the two organizations continue to frame these policies as growth strategies despite the socioeconomic hardship they often cause. During the IMF and World Bank Annual Meetings in Washington, D.C., IMF Africa Department Director Abebe Selassie called Nigeria’s subsidy removal a domestic decision, which NLC labeled “subterfuge and evasion.”
“This denial of involvement disregards the extensive influence the IMF wields in policy formation within many developing countries,” Ajaero said. “For Nigeria, where successive governments have yielded to IMF recommendations, this disavowal rings hollow.”
The NLC expressed concern that the IMF is trying to avoid responsibility for economic policies it has promoted, adding, “The IMF must understand that Nigerians are not naive; we are fully aware of the destructive influence of their policy paths on Nigeria and Africa.”
The organization criticized the IMF and World Bank for suggesting that governments mitigate the impact of austerity measures through expanded social protections, which NLC described as inadequate. “Subsidy removal and price hikes have pushed essential goods beyond reach, while social safety nets remain woefully insufficient,” NLC said.
Austerity measures questioned as socioeconomic issues worsen
According to BuisnessDay, yhe NLC argued that the IMF’s recent distancing from Nigeria’s subsidy removal reveals inconsistency in its guidance to developing nations, noting the IMF has frequently pressured Nigeria to adopt austerity measures and then distanced itself from the consequences.
“This shifting narrative undermines the IMF’s credibility and raises questions about the sincerity of its economic recommendations,” the NLC said.
NLC called for Nigeria and other developing countries to reclaim economic autonomy and resist policies imposed by external financial institutions that fail to consider local needs.
“We urge leaders to recognize the real impact of international financial institutions on our people,” the NLC stated. “The IMF’s denial of involvement in subsidy removal is hollow, considering its decades-long history of recommending similar austerity measures.”
