The Nigeria Labour Congress (NLC) has called on the International Monetary Fund (IMF) and the World Bank to cease providing policy advisories that have been detrimental to Nigeria’s economy.
This appeal comes on the heels of the IMF’s African Region Director, Abebe Selassie, characterizing the Nigerian government’s fuel subsidy removal as a domestic issue during the IMF and World Bank Annual Meetings in Washington, DC.
The NLC has faulted the IMF for distancing itself from the Nigerian government’s policies, which have caused hardship for the nation and its people. “The IMF seems to be distancing itself from the future backlash of these policies, but Nigerians are not naive; we recognise the destructive effects of its harmful strategies on Nigeria and Africa,” the union stated ¹. The NLC also pointed out the IMF’s history of recommending similar austerity measures, rendering their denial of involvement in Nigeria’s subsidy removal “insincere.”
The removal of fuel subsidies and the floating of the Naira in June 2023 have significantly contributed to Nigeria’s economic hardship. The fuel pump price has soared to over N1,030 per liter, while the Naira to Dollar exchange rate exceeds N1600. These policies have had a ripple effect on inflation and the rising cost of living in Nigeria.
The NLC has urged the World Bank and IMF to stop stifling Nigeria’s economy. “We hope our economic leaders recognise that when crises occur, the IMF and World Bank will distance themselves, leaving the government to bear the burden.” The union warned that if these policies continue, they may demand the complete withdrawal of these organizations from Nigeria, as their policies consistently undermine the economy and sabotage both the people and the nation.
