The Nigeria Labour Congress (NLC) has fiercely criticized the International Monetary Fund (IMF), dismissing its denial of involvement in the Nigerian government’s removal of petrol subsidy and other economic policies that have caused widespread hardship in the country.
NLC insists that both the IMF and World Bank are directly responsible for the nation’s economic challenges.
NLC President, Joel Ajaero, in a scathing statement issued on Sunday, accused the IMF and the World Bank of being the “twin forces” behind Nigeria’s economic troubles, calling for the removal of their “knees from our necks so that we can breathe as a nation.”
“It is cynical and indeed typical of the International Monetary Fund’s (IMF) to recently deny responsibility for the Nigerian government’s removal of petroleum subsidy,” Ajaero stated.
He added, “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 pointed out that at a recent press conference during the IMF and World Bank Annual Meetings in Washington, D.C., IMF’s African Region Director, Abebe Selassie, described the decision to remove fuel subsidy by Nigeria’s government as a “domestic one.”
However, the NLC leader accused the IMF of trying to distance itself from the reality that its policy advice has significantly shaped economic decisions in Nigeria.
“IMF’s recent statement is a display of subterfuge and evasion. This denial of involvement in Nigeria’s subsidy removal, coupled with the assertion that it was a ‘domestic decision,’ disregards the extensive influence that the IMF wields in policy formation within many developing countries,” Ajaero said.
He went on to criticize the global financial institution’s track record, arguing that its policies have consistently led to increased socioeconomic hardship in countries like Nigeria.
The NLC leader expressed further concern over the IMF’s attempts to shirk responsibility for Nigeria’s current economic woes.
“IMF must know that Nigerians are not fools, and we are always aware of the destructive influences its awful policy paths for Nigeria and indeed Africa have been,” he stated.
Ajaero also condemned the IMF’s suggested “expanded social protections” to cushion the effects of economic adjustments, describing them as insufficient and disconnected from the realities on the ground.
“The reality in Nigeria has continued to reveal a profound disconnect – subsidy removal and price hikes have pushed essential goods beyond the reach of many, with government-provided social safety nets remaining woefully inadequate,” he said.
The NLC concluded its statement by calling out the IMF for deliberately overlooking the social costs of its economic recommendations.
“This gap between IMF recommendations and the lived experiences of Nigerians highlights a fundamental and deliberate oversight in the fund’s approach to economic policy,” Ajaero asserted.
As Nigerians continue to grapple with the ripple effects of subsidy removal and rising inflation, the NLC has made it clear that it holds the IMF and World Bank accountable for policies that have deepened the economic crisis in the country.