NLC Blame IMF For Nigeria Economic Woes

October 28, 2024

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ABUJA: The Nigeria Labour Congress (NLC) has rejected the International Monetary Fund’s (IMF) denial of involvement in the Nigerian government’s removal of fuel subsidies and other controversial economic policies, asserting that the IMF is largely responsible for the country’s economic challenges.

According to NLC President Joel Ajaero, the IMF and the World Bank continue to promote economic policies that harm developing countries like Nigeria.

In a recent statement, Ajaero urged the IMF and World Bank to “take their knees off our necks so that we can breathe as a nation.

The NLC’s statement reads: The Nigeria Labour Congress (NLC) believes that the IMF’s recent denial of responsibility in Nigeria’s fuel subsidy removal is insincere. For decades, the IMF and World Bank have been the driving forces behind economic policies that increase hardship for developing countries.

Although they present these recommendations as pathways to growth, they often result in socioeconomic setbacks, as seen repeatedly in Nigeria.

During the IMF and World Bank’s Annual Meetings in Washington DC, the IMF’s African Region Director, Abebe Selassie, characterized Nigeria’s subsidy removal as a ‘domestic decision.

However, this statement ignores the powerful influence the IMF has over policy decisions in many developing countries. Despite their attempts to dismiss responsibility, the IMF’s influence on subsidy cuts as a fiscal policy tool cannot be overlooked.

In Nigeria’s case, successive governments have often implemented IMF-backed recommendations. The IMF’s disavowal feels hollow to Nigerians who have experienced the negative impact of these economic policies firsthand.

This denial appears to be a tactic to avoid backlash from the hardship that these policies have caused. The IMF should realize that Nigerians are not naïve and that they are well aware of the damaging influence of these policies. It is disingenuous for the IMF to deny involvement when the evidence of its influence is clear.

While the IMF recognizes the ‘significant social costs’ of subsidy removal, its suggestion of expanded social protections’ has largely failed to support the people who need it most. In Nigeria, these safety nets are often inadequate or inaccessible, leaving essential goods and services out of reach for many.

“The disparity between IMF recommendations and the realities faced by Nigerians reveals a deliberate oversight in the fund’s policy approach. By distancing itself from Nigeria’s subsidy removal, the IMF reveals an inconsistency in its position. It has long pushed Nigeria toward austerity measures, only to deflect responsibility when these measures lead to widespread hardship.

This shifting narrative erodes the IMF’s credibility and raises doubts about the sincerity of its economic prescriptions for developing countries. The NLC stresses the need for Nigeria to reclaim its economic independence and resist externally imposed policies that disregard local needs and realities.

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NLC Blame IMF For Nigeria Economic Woes

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