The Nigeria Labour Congress (NLC) has called on the federal government to resist undue influence from external bodies like the International Monetary Fund (IMF) and World Bank in shaping the country’s economic policies. The NLC stressed that Nigeria should reevaluate its relationship with these institutions, especially considering recent actions concerning the government’s decision to remove the fuel subsidy.
This call comes after IMF’s African Region Director, Abebe Selassie, stated at an IMF and World Bank Annual Meeting in Washington, D.C., that the decision to remove the subsidy was purely domestic. In response, NLC President Joe Ajaero criticized this assertion, describing it as evasive and misleading.
Ajaero remarked, “This denial of involvement in Nigeria’s subsidy removal, and the claim that it was a ‘domestic decision,’ dismisses the IMF’s substantial influence over policy choices in many developing countries. The IMF’s recurring calls for austerity in Nigeria, followed by detachment from the resulting hardship, casts doubt on its commitment to the welfare of third-world nations.”
The NLC further argued that the IMF’s stance on Nigeria’s subsidy removal reveals a troubling inconsistency, raising questions about the credibility of its policy recommendations. According to Ajaero, “The IMF’s insistence that Nigeria controls its economic policies is contradicted by its longstanding influence, which has often coincided with economic strain and hardship for Nigerians.”
The NLC emphasized that Nigeria, along with other developing nations, must reclaim its economic sovereignty and reject externally driven policies that disregard local realities and the needs of the populace. It expressed frustration with the IMF and World Bank’s frequent interventions that prioritize fiscal targets over social well-being.
“Our advocacy for policies that serve the best interests of Nigerians challenges the IMF’s influence and reinforces the need for economic independence to build a fair and sustainable future,” the NLC stated. “Despite IMF’s assertion of Nigeria’s economic autonomy, its policy suggestions often push subsidy cuts as necessary, which only compounds the difficulties for the Nigerian people.”
The NLC noted its concern over the IMF’s attempts to disassociate from these recent subsidy reforms, interpreting it as an effort to avoid blame for potential negative outcomes.