The Nigeria Labour Congress (NLC) has criticized the International Monetary Fund (IMF) for denying responsibility in Nigeria’s recent removal of the petrol subsidy. According to NLC, the IMF’s stance is both cynical and typical of its long history of imposing restrictive economic policies on developing nations, leading to socioeconomic hardship. NLC National President Joe Ajaaero accused the IMF of presenting harmful recommendations as growth strategies, which have contributed to economic stagnation and increased hardship in Nigeria and other nations that adopt such policies.
The IMF, during a press briefing at its annual meetings, stated that the subsidy removal decision was a “domestic issue,” suggesting it did not directly influence Nigeria’s choice. However, NLC argued that the IMF’s denial is disingenuous given its frequent endorsement of subsidy cuts as necessary for fiscal stability. The labor union noted that the IMF’s influence in policy-making is significant, and distancing itself now reflects an attempt to evade backlash. The NLC stated that Nigerians are well aware of the damaging effects of these policies and warned of a disconnect between IMF recommendations and the Nigerian reality.
NLC called on Nigeria and other developing nations to reclaim their economic sovereignty from external agencies like the IMF and World Bank, which often promote policies without regard for local impacts. It highlighted the inadequacy of social safety nets in the wake of subsidy removal and urged Nigerian leaders to adopt policies that prioritize growth, equity, and social welfare. The congress emphasized that, if crises emerge from these policies, the IMF and World Bank are likely to distance themselves, leaving the Nigerian government to shoulder the consequences alone.
