NLC Blasts IMF: You Must Take Responsibility Of Fueling Nigeria’s Economic Woes

The Nigeria Labour Congress (NLC) has rejected the International Monetary Fund’s (IMF) denial of influencing the Nigerian government’s removal of petrol subsidies and other economic policies deemed detrimental to citizens. The NLC asserts that the IMF, alongside the World Bank, has consistently pushed Nigeria towards adopting harsh economic policies that have contributed to the nation’s economic difficulties.

In a recent statement, NLC President Joel Ajaero criticized both the IMF and the World Bank for their “longstanding pattern of recommending unworkable economic policies to developing nations.” He urged the organizations to “remove their knees from our necks so that we can breathe as a nation.”

The statement highlighted the IMF’s recent remarks during its annual meetings in Washington, where IMF African Region Director Abebe Selassie described Nigeria’s decision to remove the fuel subsidy as a “domestic” choice. Ajaero, however, argued that this statement disregards the IMF’s significant influence on policy-making in developing countries, especially in Nigeria, where successive governments have frequently aligned with IMF recommendations. He added that the IMF’s denial “rings hollow” as it minimizes the organization’s direct role in shaping Nigeria’s economic policies.

The NLC also expressed deep concern about the IMF’s evasion of accountability, emphasizing that Nigerians are well aware of the economic hardship caused by the IMF’s policy recommendations. “It is pretentious and truly too late to deny complicity,” the NLC statement read, adding that past warnings from labor organizations regarding IMF-driven policies have largely gone unheeded by Nigerian leadership.

Ajaero further criticized the IMF’s suggestions for social protections as insufficient, calling the policies “a system that beggars the people, forcing them to dwell on handouts.” He noted that the price hikes following subsidy removal have made essential goods unaffordable for many, while government safety nets are still inadequate.

The statement underscored the disconnect between IMF prescriptions and the reality faced by Nigerians, calling it a “fundamental and deliberate oversight in the fund’s approach to economic policy.” The NLC asserted that the IMF’s repeated calls for austerity, followed by distancing itself from the resulting hardship, only erodes its credibility.

Reflecting broader frustration with external financial influence, the NLC urged Nigeria to reclaim its economic autonomy, criticizing the IMF and World Bank for promoting fiscal goals at the expense of social welfare. The NLC’s stance, Ajaero said, reflects the need for economic policies that prioritize growth, social welfare, and equity.

The statement concluded with a call for Nigeria’s leadership to “learn the appropriate lessons,” warning that institutions like the IMF and World Bank may wash their hands of the consequences when policies lead to social or economic strife. “Nigeria must pursue policies that reflect the real needs of our citizens,” Ajaero emphasized, “prioritizing measures that benefit the people rather than austerity policies that lead to economic hardship.”

He reiterated the NLC’s demand for the IMF and World Bank to withdraw their influence from Nigeria, warning that labor organizations may soon call for their complete exit if they continue undermining the Nigerian economy.