The Nigeria Labour Congress (NLC) has issued a stinging critique of the International Monetary Fund (IMF), accusing the global financial institution of evading responsibility over its role in Nigeria’s recent fuel subsidy removal. The congress argues that the IMF’s denial of influence, amid what it terms the fund’s “cynical” history of pushing austere economic policies, exposes an ongoing pattern of imposing hardship on developing nations.
In a statement on Sunday, NLC President Joe Ajaero condemned the IMF’s characterization of the subsidy removal as a purely “domestic decision,” labelling this as both disingenuous and emblematic of the IMF’s enduring hold over Nigeria’s economic choices. During a recent IMF-World Bank conference in Washington, the IMF’s African Region Director, Abebe Selassie, distanced the organisation from Nigeria’s decision to cut fuel subsidies, calling it a national issue. Ajaero, however, insists the fund’s influence is clear: “The IMF often urges subsidy cuts as ‘fiscal sustainability’ measures, only to step back from the consequences. This denial rings hollow in Nigeria, where IMF policies have led to soaring costs and deepening inequality.”
The NLC’s statement challenges what it sees as an IMF tactic to disown responsibility when controversial policies backfire, while also accusing the fund of promoting “misguided” economic strategies that impoverish rather than uplift. For Nigerians, the IMF’s claim to neutrality is seen as an attempt to distance itself from policies that have led to greater costs for everyday essentials while national safety nets remain insufficient.
According to the NLC, IMF recommendations often prioritise austerity over stability and growth, leaving developing economies “permanently reliant” on external loans and emergency aid. “It is simply dishonest for the IMF to dismiss its role in these damaging strategies,” the union added, highlighting that even where the IMF acknowledges the “social costs” of its policies, it typically suggests mitigations like social protections that, according to the NLC, frequently prove ineffective.
The NLC statement further calls on Nigerian economic policymakers to resist these external pressures, urging a pivot toward strategies that serve the local economy and lift up vulnerable populations. “Our nation has to assert its own economic sovereignty and adopt policies designed for genuine progress,” Ajaero said. He warned that continued compliance with IMF directives without consideration of Nigeria’s own context would only deepen existing inequalities and unrest.
The union also stated that if such “interventions” persist, it may be compelled to demand the withdrawal of both the IMF and World Bank from Nigeria, citing their policies’ “consistent undermining” of national progress and stability.
