The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has condemned the economic policies of the International Monetary Fund (IMF) and the World Bank stating that these policies are making Nigerians poorer.
The congress claimed that the IMF is known for “recommending similar austerity measures” that have inflicted more hardship on developing nations.
The IMF had previously urged countries facing high inflation, including Nigeria, to adopt tighter monetary policies to stabilize their economies.
At the IMF/World Bank Annual Meeting 2024, the Washington-based institution stated, “In countries where inflation is very high, we recommend a tight monetary policy stance. In some cases, when possible, fiscal consolidation can help, though this is complicated by trade-offs many nations face.”
But reacting to the development, Ajaero argued that these recommendations showed a disconnect from Nigeria’s economic realities.
He said, “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.
“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 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.
“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 emphasized that Nigeria must create policies that address citizens’ real needs, focusing on economic growth, social welfare, and fairness over cutbacks that heighten economic hardships and social unrest.
Ajaero further stated, “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 Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, also noted that while Nigeria receives support from the World Bank, it frequently rejects recommendations from the IMF.
“They give us advice, and we do take concessional financing from the World Bank. As for the IMF, more often than not, we disagree with them, and we don’t have anything from them other than what was inherited during the Covid financing,” Edun said.