The congress describes the denial as cynical and emblematic of the IMF
and World Bank’s longstanding pattern of imposing harsh economic policies on
developing nations.
In a statement on Sunday, NLC National President, Joe Ajaaero,
criticised the IMF for presenting its harmful recommendations as growth
strategies, which have led to increased socioeconomic hardship and stagnation
in Nigeria and other nations that have followed their misguided advice.
During a press conference at the IMF and World Bank Annual Meetings in
Washington, DC, Abebe Selassie, the IMF’s African Region Director,
characterized the Nigerian government’s decision to remove the fuel subsidy as
a domestic issue.
“The IMF’s recent statement shows evasion, claiming Nigeria’s subsidy
removal was a ‘domestic decision,’ while ignoring its significant influence on
policy-making in developing countries. Despite this denial, the IMF often
advocates for subsidy cuts as necessary for fiscal sustainability, making its
disavowal seem hollow in a country that has frequently complied with such
recommendations,” the statement said.
According to NLC, it is increasingly alarmed by the IMF’s denial, which
reflects the troubling policies imposed on Nigeria by the IMF and World Bank.
“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.
It added, “It is disingenuous for the IMF to deny complicity, especially
since we have warned the government about the consequences of adopting these
policies.”
Meanwhile, NLC mentioned that the IMF and World Bank’s denial of the
social costs of their policies raises further concerns. Although the IMF
recognises the “significant social costs,” it simply suggests that governments
mitigate these hardships through expanded social protections—an approach that
often leaves people dependent on ineffective handouts, like the RICE
initiative, the union stated.
It added that in Nigeria, subsidy removal and rising prices have made
essential goods unaffordable, while government social safety nets remain
inadequate.
NLC asserted that the disconnect between IMF recommendations and the
reality in Nigeria highlights a major oversight in the fund’s economic policy.
By distancing itself from Nigeria’s subsidy removal, the IMF shows
inconsistency in its guidance, urging austerity while avoiding responsibility
for the ensuing hardships.
Furthermore,
NLC stressed that this undermines its credibility and raises doubts about the
sincerity of its economic prescriptions, especially as its claim of
Nigeria’s control over its policies contradicts its historical influence, often
leading to turmoil and hardship.
Also, NLC emphasised the need for Nigeria and other developing countries
to reclaim their economic sovereignty, resisting externally imposed policies
that fail to consider local contexts and the needs of the masses.
“The IMF’s denial of involvement in Nigeria’s subsidy removal seems
insincere, given its history of recommending similar austerity measures. 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,” it
stated.
It added that Nigeria must implement policies that address the genuine
needs of its citizens by prioritizing economic strategies that promote growth,
social welfare, and equity, rather than austerity measures that result in
deeper economic difficulties and social unrest.
“We urge the World Bank and IMF to stop stifling our nation so we can
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,” NLC stated.
NLC urged the IMF not to present itself cowardly but should stand up and own up! That is what is called honesty and transparency which is the bedrock of IMF’s much-vaunted institutional integrity.
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