Nigeria Labour Congress Criticizes IMF and World Bank for 'Insincere' Economic Policies

The Nigeria Labour Congress (NLC) has called on the World Bank and the International Monetary Fund (IMF) to stop imposing "insincere" policy advice that negatively impacts Nigeria. This statement, released on Sunday by the NLC president, follows a recent press briefing during the IMF and World Bank Annual Meetings in Washington, DC, where Abebe Selassie, the IMF's African Region Director, referred to Nigeria's decision to eliminate the fuel subsidy as an internal matter.

The NLC criticized the IMF for attempting to distance itself from the Nigerian government's policies, which have caused widespread hardship. "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," the union stated.

The NLC accused the IMF of insincerity, pointing to the organization's history of recommending similar austerity measures in Nigeria. "The IMF’s denial of involvement in Nigeria’s subsidy removal seems insincere, given its history of recommending such measures," the statement read. The NLC expressed concern that when economic crises arise, institutions like the IMF and the World Bank may shift the responsibility entirely onto the government. "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," the union added.

The NLC further urged the World Bank and the IMF to cease stifling Nigeria's economic progress. "We call on these institutions to let our nation 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 NLC declared.

The current economic situation in Nigeria is dire, with citizens facing severe hardship due to dual policies implemented in June 2023: the removal of gasoline subsidies and the floating of the Naira. These policies have contributed to rising inflation and a soaring cost of living, with gasoline prices now exceeding N1,030 per litre and the Naira-to-dollar exchange rate surpassing N1,600.