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Nigeria Labour Congress (NLC) has urged the federal government to resist undue influence from external bodies, like the International Monetary Fund (IMF) and World Bank, on the country’s economic policies.
NLC said the need to reconsider the country’s relationship with the two financial institutions became necessary in view of their recent posture over the implementation of the federal government’s removal of fuel subsidy.
IMF’s African Region Director, Abebe Selassie, had during a press conference by IMF and World Bank, after its Annual Meetings in Washington DC, described the decision to remove fuel subsidy by the federal government as a domestic one.
However, in a statement by its president, Joe Ajaero, NLC described IMF’s statement as a display of subterfuge and evasion.
Ajaero said, “This denial of involvement in Nigeria’s subsidy removal, coupled with the assertion that it was a ‘domestic decision’ disregards the extensive influence that the IMF wields in policy formation within many developing countries.
“In distancing itself from Nigeria’s subsidy removal, the IMF also demonstrates an unsettling inconsistency in its advice to developing nations. It has repeatedly pressured Nigeria to undertake austerity measures, only to distance itself from the results when these recommendations bring hardship to the populace.
“This shifting narrative not only undermines the IMF’s credibility but also raises questions about the sincerity and reliability of its economic prescriptions for third-world nations.
“The IMF’s insistence that Nigeria is in full control of its economic policies stands in stark contrast to its historical and continued influence, which has often been accompanied by economic turmoil and hardship.”
NLC emphasised the need for Nigeria and other developing countries to reclaim their economic sovereignty, and resist externally imposed policies that failed to consider local contexts and the needs of the masses.
According to NLC, its stance reflects a broader frustration with the World Bank and IMF’s recurring interventions, which prioritise fiscal metrics over social welfare.
NLC stated, “By advocating for policies that genuinely benefit Nigerians, we challenge the IMF’s influence and underscore the importance of economic autonomy in building a just, sustainable future. This once again is a powerful reminder to our leaders of the impact of international financial institutions on our people and the need to be circumspect in walking their path
“Despite this assertion, the IMF’s policy dialogues often suggest subsidy cuts as necessary steps toward fiscal sustainability.
“For Nigeria, where successive governments have frequently yielded to these recommendations, the IMF’s disavowal rings hollow, as it under-plays the fund’s direct impact on the nation’s economic policies”.
NLC said it became more worried about the denial by IMF at this time, which was another signpost of the already disturbing policies by the Nigerian government at the behest of the IMF and World Bank, which IMF was now trying to distance itself from.
It said the summersault by IMF showed that the institution was working very hard to stay away from the blame or the backlash that its policy directions will evidently bring in the future.
Onyebuchi Ezigbo
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