Subsidy Removal Denial: Nigeria Must Begin to Reject IMF Policies—NLC

By Modupe Gbadeyanka

The Nigeria Labour Congress (NLC) has expressed its anger over claims by the International Monetary Fund (IMF) that it is not responsible for the removal of subsidy on premium motor spirit (PMS), otherwise known as petrol, in Nigeria, stressing that Nigeria must begin to reject the policies of the organisation.

Recall that last week, the IMF African Region Director, Mr Abebe Selassie, at a press conference at the IMF and World Bank Annual Meetings in Washington, DC, absolved itself from the subsidy removal despite piling pressure on the federal government to take it out.

In a statement on Sunday, the frontline labour union in the country took an exception to IMF denial, noting that it was unfortunate that the government heeded the global lender’s misguided advice.

“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,” a part of the statement said.

“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 subsidy cuts as necessary for fiscal sustainability, making its disavowal seem hollow in a country that has frequently complied with such recommendations,” the NLC stated in the statement.

“It is disingenuous for the IMF to deny complicity, especially since we have warned the government about the consequences of adopting these policies,” it added.

The union advised Nigeria and other developing countries to reclaim their economic sovereignty and resist externally imposed policies that fail to consider local contexts and the needs of the masses, noting that the government 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.

“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.

“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,” it submitted.

The NLC, headed by Mr joe Ajaero, argued that the gap between IMF recommendations and the reality in Nigeria highlights a major oversight in the fund’s economic policy.