The Nigeria Labour Congress (NLC) has criticized the International Monetary Fund (IMF) over its denial of involvement in Nigeria’s recent decision to remove fuel subsidies.
The NLC, led by National President Joe Ajaero, claims the IMF often pushes developing nations to adopt tough economic policies that hurt ordinary people.
In a recent statement, Ajaero called the IMF’s stance “cynical” and said the organization frequently promotes policies like subsidy cuts under the guise of economic growth.
According to the NLC, these policies have brought hardship and slowed progress in Nigeria and similar countries.
“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.
“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.”
This issue surfaced during the IMF and World Bank Annual Meetings in Washington, D.C., where IMF African Region Director Abebe Selassie described the fuel subsidy removal as Nigeria’s own decision. The IMF said it had no direct role in the decision, calling it a “domestic matter.”
It can be recalled that President Tinubu, in May 2023, announced the end of the fuel subsidy, leading to an increase in the pump price of petrol from about N200 to more than N1,000.
