NLC Signals Possible Call for Full Withdrawal of World Bank and IMF from Nigeria
The Nigeria Labour Congress (NLC) has strongly criticized the International Monetary Fund (IMF) for denying any role in Nigeria’s decision to remove fuel subsidies. Speaking at a recent press conference during the IMF and World Bank Annual Meetings in Washington, D.C., Abebe Selassie, IMF’s African Region Director, referred to the fuel subsidy removal as a “domestic issue,” asserting that the decision rested solely with the Nigerian government.
In response, NLC President Joe Ajaero expressed disappointment with the IMF’s stance, calling it evasive. He argued that although the IMF claims that Nigeria’s subsidy removal was an independent decision, it has historically exerted considerable influence on policy-making in developing countries. “Despite this denial,” Ajaero remarked, “the IMF frequently advocates for subsidy cuts as part of fiscal sustainability, making their disavowal appear hollow in a country that has often complied with these recommendations.”
The NLC’s statement went further to suggest that the IMF is attempting to distance itself from any potential backlash arising from these policies, though Nigerians are fully aware of the damaging effects these strategies have on Nigeria and the African continent at large. “It is disingenuous for the IMF to deny complicity, especially since we have previously cautioned the government about the consequences of adopting such policies,” Ajaero added.
Ajaero also highlighted the economic toll that subsidy removal and rising costs have taken on Nigerian citizens, pointing out that essential goods have become unaffordable, and social safety nets remain insufficient. According to the NLC, the discrepancy between the IMF’s recommendations and Nigeria’s on-ground realities exposes flaws in the fund’s economic policies. By denying its role in the subsidy removal, the IMF, according to the NLC, reveals an inconsistency in its stance—promoting austerity but avoiding responsibility for the associated hardships.
The NLC stressed the importance of Nigeria and other developing countries reclaiming their economic sovereignty by resisting externally driven policies that disregard local needs. “The IMF’s denial of involvement seems insincere, given its history of recommending similar austerity measures. We hope our economic leaders understand that, in times of crisis, the IMF and World Bank often step back, leaving the government to handle the consequences,” Ajaero stated.
He further called for Nigeria to adopt policies that genuinely address citizens’ needs, prioritizing growth, social welfare, and equity over austerity measures that deepen economic hardship and social tension. “We urge the World Bank and IMF to stop suffocating our nation so we can breathe freely,” he said, warning that Nigeria might soon demand their withdrawal if their policies continue to undermine the nation’s economy and welfare.
The NLC concluded by urging the IMF to take accountability, stressing that honesty and transparency are crucial to the institution’s integrity.
