The Nigeria Labour Congress (NLC) has condemned the International Monetary Fund (IMF) for denying responsibility regarding the removal of fuel subsidies by the Nigerian government.
In a statement released on Sunday, NLC National President Joe Ajaero described the IMF’s denial as “cynical,” accusing the organization of perpetuating a pattern of imposing harsh economic policies on developing nations.
During a press conference at the IMF and World Bank Annual Meetings in Washington, D.C., Abebe Selassie, the IMF’s African Region Director, said the removal of fuel subsidy by the Nigerian government is a domestic issue.
According to Ajaero, the “IMF’s recent statement shows evasion, claiming Nigeria’s subsidy removal was a ‘domestic decision,’ while ignoring its significant influence on policy-making in developing countries”.
He said, “Despite this denial, the IMF often advocates for subsidy cuts as necessary for fiscal sustainability, making its disavowal seem hollow in a country that has frequently complied with such recommendations.”
The statement further reads, “The IMF seems to be distancing itself from the future backlash of these policies, but Nigerians are not naive; we recognize the destructive effects of its harmful strategies on Nigeria and Africa.”
“It is disingenuous for the IMF to deny complicity, especially since we have warned the government about the consequences of adopting these policies,” he said.
Ajaero explained that in Nigeria, subsidy removal and rising prices have made essential goods unaffordable, while government social safety nets remain inadequate.
The NLC pointed out that the gap between IMF recommendations and the actual situation in Nigeria reveals a significant flaw in the fund’s economic policy. By distancing itself from the removal of subsidies in Nigeria, the IMF demonstrates inconsistency in its advice, advocating for austerity while shirking responsibility for the resulting hardships.
NLC argued that this inconsistency undermines the IMF’s credibility and raises questions about the sincerity of its economic recommendations. It noted that its assertion that Nigeria has control over its policies is at odds with its historical influence, which has often resulted in turmoil and suffering.
The NLC also highlighted the necessity for Nigeria and other developing nations to reclaim their economic sovereignty, resisting externally imposed policies that overlook local realities and the needs of the populace.
“The IMF’s denial of involvement in Nigeria’s subsidy removal seems insincere, given its history of recommending similar austerity measures. We hope our economic leaders recognize that when crises occur, the IMF and World Bank will distance themselves, leaving the government to bear the burden,” he said.
He said Nigeria must implement policies that address the genuine needs of its citizens by prioritizing economic strategies that promote growth, social welfare, and equity, rather than austerity measures that result in deeper economic difficulties and social unrest.
“We urge the World Bank and IMF to stop stifling our nation so we can breathe freely. They have become a significant challenge for us, and we may soon be compelled to demand their complete withdrawal from Nigeria, as their policies consistently undermine our economy and sabotage both the people and the nation.”
The NLC has urged the IMF to be bold and take responsibility, emphasizing that honesty and transparency are essential to the institution’s claimed integrity.