Nigeria Labour Congress Calls Out IMF’s “Cynical” Denial Over Fuel Subsidy Removal
The Nigeria Labour Congress (NLC) has accused the International Monetary Fund (IMF) of “cynical” denial regarding its role in Nigeria’s recent removal of petrol subsidies, a decision that has led to rising costs and widespread economic hardship. NLC National President, Joe Ajaero, criticised the IMF on Sunday, describing its claims of non-involvement as emblematic of a broader pattern by both the IMF and the World Bank to impose punishing economic policies on developing nations while dodging responsibility for the fallout.
Ajaero’s remarks followed comments by Abebe Selassie, the IMF’s African Region Director, during the IMF and World Bank Annual Meetings in Washington, D.C., where he characterisedNigeria’s subsidy removal as a domestic choice. “This evasive stance from the IMF implies that Nigeria’s subsidy removal was purely a ‘domestic decision,’ ignoring the IMF’s significant influence over policy direction in developing countries,” Ajaerosaid. “The IMF routinely pushes for subsidy cuts as a route to fiscal stability, yet when adverse effects arise, it distances itself.”
The NLC further warned of the long-term impact of the IMF’s economic strategies on Nigeria and Africa, condemning what it called the “IMF’s insincere approach.” “It is disingenuous for the IMF to deny complicity, particularly given that we have cautioned the government repeatedly on the destructive outcomes of adopting these policies,” the NLC stated.
Highlighting the IMF’s approach to “social protections” as insufficient, the NLC criticised reliance on ineffective social safety nets, which often fail to mitigate the hardship caused by austerity measures. “Subsidy removals have left essentials unaffordable for many Nigerians, while safety nets like the RICE initiative barely cushion the impact,” the statement continued. This disconnect between IMF recommendations and the realities on the ground in Nigeria, it argued, underscores a troubling gap in the fund’s approach to economic policy.
The NLC also underscored that the IMF’s “austerity-first” approach undermines its own credibility, creating doubts about the sincerity of its prescriptions. By downplaying its influence over subsidy removals, the IMF appears inconsistent, Ajaerosaid, “urging austerity without accountability for the resulting social fallout.”
The union called for a shift towards economic policies grounded in Nigeria’s specific needs, rather than one-size-fits-all austerity measures, and urged Nigeria and other developing nations to reclaim economic autonomy. “The IMF’s denial reveals an unwillingness to take ownership for its policies,” the statement read, “We urge our leaders to consider strategies that prioritisegrowth, equity, and social welfare over externally imposed austerity that deepens poverty and social unrest.”
In a final rebuke, the NLC warned that, should IMF policies continue to strain the Nigerian economy, it may soon demand a complete withdrawal of IMF and World Bank influence in Nigeria. “The IMF must not shrink from its own role in our economic policies but must stand up and own up. That is honesty and transparency—the foundation of its so-called institutional integrity,” the union concluded.
