Labour berates IMF, World Bank roles in Nigeria’s subsidy removal

…Counsel leaders on accepting external economic prescriptions

The Nigeria Labour Congress (NLC) on Sunday, berated the World Bank and the International Monetary Fund IMF, for underplaying their roles in Nigeria’s fuel subsidy removal, claiming it is was a “domestic decision”.

The NLC, in a statement on Sunday described as “cynical and indeed typical of the International Monetary Fund’s (IMF) to deny responsibility for the Nigerian government’s removal of petroleum subsidy”.

“The IMF and its cousin in economic mischief – the World Bank remains the twin forces that have longstanding pattern of recommending harsh and unworkable Economic policies to developing nations,” NLC said in the statement signed by Joe Ajaero, the NLC President.

“The two organisations in their usual subterfuge, continued to present these advisories as growth strategies but which have unfortunately often led to increased socioeconomic hardship and stagnation in Nigeria and other nations that have had the misfortune of drinking their poisoned chalice.”

Read also: IMF to FG: Implement measures to cushion effects of subsidy, FX reforms

At a recent press conference during the IMF and World Bank Annual meetings in Washington DC, United States, Abebe Selassie, IMF’s African Region Director, described the decision to remove fuel subsidy by Nigeria’s government as a domestic one.

The NLC described the IMF’s recent statement as “a display of subterfuge and evasion”.

“This denial of involvement in Nigeria’s subsidy removal, coupled with the assertion that it was a domestic decision, disregards the extensive influence that the IMF wields in policy formation within many developing countries,” Ajaero’s statement said.

“For Nigeria, where successive governments have frequently yielded to these recommendations, the IMF’s disavowal rings hollow, as it underplays the fund’s direct impact on the nation’s economic policies”.
The NLC said it has become “more worried over this denial at this time which is another signpost of the already disturbing policies by the Nigerian government at the behest of the IMF and World Bank and which IMF is now trying to distance itself.”

The NLC stated that this shows that the institution is working very hard to stay away from the blame or the backlash that its policy directions will evidently bring in the future.

According to NLC: “IMF must know that Nigerians are not fools and we are always aware of the destructive influences its awful policy paths for Nigeria and indeed Africa has been.

“It is pretentious and truly too late to begin to deny complicity because we warned the government about the consequences of implementing IMF and World Bank driven policies.

“As IMF and World Bank continue to pretend not to know the apparent obviousness of the social costs of its policy recommendations another layer of concern is added to the entire denial.”

The NLC also berated the IMF and the World Bank for suggesting that governments can mitigate the hardships that comes with such policies through expanded social protections which is “a system that beggars the people forcing them to dwell on handouts in this case RICE that never gets to the people.”

“The reality in Nigeria has continued to reveal a profound disconnect – subsidy removal and price hikes have pushed essential goods beyond the reach of many, with government-provided social safety nets remaining woefully inadequate.

The NLC also observed that the gap between IMF recommendations and the lived experiences of Nigerians highlights a fundamental and deliberate oversight in the fund’s approach to economic policy.

“In distancing itself from Nigeria’s subsidy removal, the IMF also demonstrates an unsettling inconsistency in its advice to developing nations,” the statement said.

“It has repeatedly pressured Nigeria to undertake austerity measures, only to distance itself from the results when these recommendations bring hardship to the populace.

“This shifting narrative not only undermines the IMF’s credibility but also raises questions about the sincerity and reliability of its economic prescriptions for third-world nations. The IMF’s insistence that Nigeria is in full control of its economic policies stands in stark contrast to its historical and continued influence, which has often been accompanied by economic turmoil and hardship.”

The NLC therefore, emphasised the need for Nigeria and other developing countries to reclaim their economic sovereignty, resisting externally imposed policies that fail to consider local contexts and the needs of the masses.

The NLC said its stance reflects a broader frustration with the World Bank and IMF’s recurring interventions, which prioritize fiscal metrics over social welfare.

“By advocating for policies that genuinely benefit Nigerians, we challenge the IMF’s influence and underscores the importance of economic autonomy in building a just, sustainable future.
“This once again is a powerful reminder to our leaders of the impact of international financial institutions on our people and the need to be circumspect in walking their path. The IMF’s denial of involvement in Nigeria’s subsidy removal rings hollow, considering its decades-long history of recommending similar austerity measures.

“ We hope that our Economic handlers have learnt or are learning the appropriate lessons to sufficiently know that when “shit hits the fan”, IMF and World Bank will wash its hands off and leave the Government carrying the burden and holding the wrong end of the stick.

“Nigeria must pursue policies that reflect the real needs of our citizens prioritize economic policies that drive growth, social welfare, and equity, not austerity measures that lead to further economic quagmire and social unrest.
“Once again, we call on the World Bank and IMF to remove their knees from our necks so that we can breathe as a nation.

The NLC, while also asserting that the international financial institutions have “become the major problem we have as a nation and we may be forced to soon demand that they leave Nigeria entirely as their policies have continued to undermine our Economy and sabotage the people and the nation.