The Nigeria Labour Congress (NLC) has called on the federal government to resist undue influence from external organizations such as the International Monetary Fund (IMF) and the World Bank on Nigeria’s economic policies. The NLC emphasized the importance of reassessing the country’s relationship with these institutions, especially following their recent stance on the federal government’s removal of fuel subsidies.
During a press conference following the IMF and World Bank Annual Meetings in Washington, D.C., IMF’s African Region Director, Abebe Selassie, described the decision to remove the fuel subsidy as a “domestic” one. However, NLC President Joe Ajaero countered this statement, calling it evasive and misleading.
Ajaero stated, “The IMF’s denial of involvement in Nigeria’s subsidy removal, coupled with its framing as a ‘domestic decision,’ ignores the IMF’s substantial role in shaping policies in many developing countries. By distancing itself from this issue, the IMF reveals a troubling inconsistency in its guidance to developing nations. The Fund has repeatedly pressured Nigeria to adopt austerity measures and now distances itself when these recommendations bring hardship.”
The NLC argued that this inconsistent stance damages the IMF’s credibility and raises doubts about the sincerity of its economic prescriptions for developing nations. Ajaero highlighted that while the IMF claims Nigeria is in full control of its policies, its historical and ongoing influence has frequently been linked to economic instability and hardship.
The NLC emphasized the need for Nigeria and other developing nations to reclaim economic sovereignty and resist external policies that fail to consider local needs and contexts. The Congress’s stance reflects broader frustration with the IMF and World Bank’s frequent interventions, which often prioritize fiscal targets over social welfare.
“By advocating policies that genuinely serve Nigerians, we challenge the IMF’s influence and underscore the importance of economic independence in building a just, sustainable future,” the NLC said, urging leaders to recognize the significant impact of international financial institutions and proceed with caution.
The NLC further noted that despite the IMF’s assertion of Nigeria’s policy autonomy, its guidance consistently promotes subsidy cuts as essential for fiscal health. Ajaero described the IMF’s disavowal as disingenuous, arguing that it downplays the direct influence the Fund has historically wielded over Nigeria’s economic policies.
This growing concern over the IMF’s distancing itself from subsidy reforms is, according to the NLC, another troubling sign of policies driven by external influences at the expense of Nigerian interests. The NLC concluded that the IMF appears eager to avoid accountability for potential fallout from these policies, which, it warned, will likely impact Nigeria’s future economic stability.
