The Nigeria Labour Congress (NLC) has pointed fingers at the International Monetary Fund (IMF) for the country’s ongoing economic troubles.
In a bold statement, the NLC dismissed the IMF’s denial of involvement in Nigeria’s removal of petrol subsidies and other controversial economic policies.
The NLC argues that the IMF, alongside the World Bank, has a long history of recommending harsh economic measures that often harm developing nations.
NLC President Joel Ajaero spoke out against the IMF during a recent press conference.
He said, “IMF and its cousin in economic mischief—the World Bank—remain the twin forces that have a longstanding pattern of recommending harsh and unworkable economic policies to developing nations.”
Ajaero’s comments come in response to IMF African Region Director Abebe Selassie’s remarks during the IMF and World Bank Annual Meetings in Washington, D.C.
Selassie described the Nigerian government’s decision to remove fuel subsidies as a “domestic one,” distancing the IMF from the fallout of that policy.
However, Ajaero characterized this statement as a “display of subterfuge and evasion.”
He expressed frustration at the IMF’s denial, insisting it undermines the fund’s significant influence on Nigerian economic policies.
Ajaero stated, “This denial of involvement in Nigeria’s subsidy removal… disregards the extensive influence that the IMF wields in policy formation within many developing countries.”
He further added, “For Nigeria, where successive governments have frequently yielded to these recommendations, the IMF’s disavowal rings hollow.”
The NLC’s criticisms reflect growing concerns among Nigerians regarding the rising cost of living.
Since the removal of the petrol subsidy, many have struggled to afford basic goods.
Nigerians have faced soaring fuel prices and increased costs for essential commodities, making daily life more challenging.
Ajaero lamented, “While the IMF acknowledges the ‘significant social costs involved,’ it casually suggests that governments can mitigate these hardships through expanded social protections.”
He criticized the effectiveness of these social safety nets, calling them inadequate for the needs of the population.
“Subsidy removal and price hikes have pushed essential goods beyond the reach of many,” he said.
The NLC emphasized the need for Nigeria to reclaim its economic sovereignty and resist externally imposed policies.
Ajaero stated, “We challenge the IMF’s influence and underscore the importance of economic autonomy in building a just, sustainable future.”
He called for a shift in focus from austerity measures to policies that truly benefit Nigerians.
The ongoing frustration with the IMF and World Bank reflects a wider sentiment in Nigeria about the influence of international financial institutions.
Past economic interventions have often led to worsening conditions for ordinary citizens.
Many Nigerians feel that these institutions prioritize fiscal metrics over the welfare of the people.
Ajaero said, “This once again is a powerful reminder to our leaders of the impact of international financial institutions on our people.”
The NLC has voiced concerns that the IMF is trying to distance itself from the consequences of its recommendations.
Ajaero explained, “It shows that the institution is working very hard to stay away from the blame or the backlash that its policy directions will bring in the future.”
He warned that the IMF’s repeated advice for austerity measures often leads to increased hardship for the populace.
“IMF’s insistence that Nigeria is in full control of its economic policies stands in stark contrast to its historical and continued influence,” he said.
The NLC called on the Nigerian government to prioritize economic policies that drive growth and equity.
Ajaero urged, “We hope that our economic handlers have learnt or are learning the appropriate lessons to know that when ‘shit hits the fan,’ the IMF and World Bank will wash their hands off and leave the Government carrying the burden.”
Many Nigerians are anxious about their economic future and are calling for action.
As the cost of living continues to rise, citizens are becoming more vocal about their frustrations.
The NLC has signaled a growing demand for accountability from both the Nigerian government and international financial institutions.
They stress the need for local solutions that consider the unique challenges faced by Nigerians.
“The IMF should not worry; for we know that the petrol price hike and the electricity tariff hikes were domestic decisions,” Ajaero stated.
He compared the situation to “Esau’s Hands but Jacob’s voice,” highlighting the disconnect between government actions and public sentiment.
