The Nigeria Labour Congress (NLC) has strongly criticized the International Monetary Fund (IMF) and the World Bank, urging them to cease their “insincere” policy advisories that are suffocating Nigerians.
The president of the NLC made this declaration in a statement released on Sunday, reflecting the growing frustration among Nigerians over the economic challenges facing the country.
This statement follows remarks made by Abebe Selassie, the IMF’s African Region Director, during a press conference at the IMF and World Bank Annual Meetings in Washington, DC. Selassie characterized the Nigerian government’s decision to eliminate the fuel subsidy as a domestic matter, distancing the IMF from the resulting hardships that Nigerians are experiencing.
The NLC responded with skepticism to the IMF’s disassociation, asserting that the Body cannot absolve itself of responsibility for policies that have led to significant suffering for the populace.
“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.
The NLC also criticized the IMF’s position, highlighting its history of advocating for similar austerity measures in Nigeria.
“The IMF’s denial of involvement in Nigeria’s subsidy removal seems insincere, given its history of recommending similar austerity measures,” they noted.
The union expressed concern about the broader implications of these policies, warning that the IMF and World Bank tend to withdraw their support when crises arise, leaving the Federal government to handle the fallout. “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,” they added.
The Unions urged both the World Bank and the IMF to reconsider their approaches.
“We urge the World Bank and the IMF to stop stifling our nation so we can breathe freely.” it stated.
The NLC also highlighted the increasing frustration with the financial institutions, suggesting that they may soon be compelled to demand a complete withdrawal of these organizations from Nigeria due to their detrimental impact on the economy.
The ongoing economic crisis in Nigeria has been exacerbated by policies such as the removal of the fuel subsidy and the floating of the Naira, implemented in June 2023. These measures have resulted in a sharp rise in fuel prices—now exceeding N1,030 per litre—and a staggering exchange rate of over N1600 to the Dollar, contributing to soaring inflation and a rising cost of living for millions of Nigerians.