In a statement on Sunday, NLC President Joe Ajaaero accused the IMF of masking harmful recommendations as growth strategies, which, according to him, have consistently worsened socioeconomic conditions in Nigeria. He highlighted that the IMF’s longstanding influence over Nigeria’s economic policies has left a legacy of “hardship and stagnation.”
The controversy arose after IMF African Region Director, Abebe Selassie, labeled the Nigerian government’s decision to remove the fuel subsidy as a “domestic issue” during a press conference at the IMF and World Bank Annual Meetings in Washington, DC. The NLC criticized the statement as evasive, noting that the IMF has often pressured developing nations like Nigeria to cut subsidies under the banner of fiscal stability, which makes its current denial seem hollow.
“The IMF’s dismissal of involvement reflects an insincere stance on its influence over subsidy removal,” stated the NLC, adding that the Nigerian public understands the detrimental impact of these policies. According to the NLC, the IMF’s denial of the social costs of its recommendations only raises more concerns, as subsidy cuts have caused essential goods to become unaffordable while social safety nets remain inadequate.
The NLC argued that IMF’s detachment highlights a broader disconnect between its policies and the economic realities on the ground. It further stated that this inconsistency undermines the IMF’s credibility, especially as it urges Nigeria and other developing nations to adopt austerity measures without taking responsibility for the resulting hardships.
Calling for economic sovereignty, the NLC emphasized the need for Nigeria to reject externally imposed policies that overlook local needs. “Nigeria must focus on policies that address the real needs of its people, prioritizing growth, social welfare, and equity over austerity,” the NLC stated, noting that continued adherence to IMF policies risks deeper economic and social challenges.
In conclusion, the NLC issued a warning to both the IMF and World Bank, stating, “We may soon demand the withdrawal of these institutions if their policies continue to stifle our economy and sabotage the welfare of our nation and people.”
