NLC Condemns IMF’s Denial Over Fuel Subsidy Removal

The NLC labeled this denial as cynical and reflective of a broader pattern where international financial institutions impose harsh economic policies on developing nations.

In a statement released on Sunday, NLC President Joe Ajaaero condemned the IMF for presenting its harmful recommendations as strategies for growth, which have exacerbated socioeconomic challenges in Nigeria and similar countries.

He stated, “The IMF’s recent statement shows evasion, claiming Nigeria’s subsidy removal was a ‘domestic decision,’ while ignoring its significant influence on policy-making.”

During a press conference at the IMF and World Bank Annual Meetings in Washington, D.C., Abebe Selassie, the IMF’s African Region Director, characterized the subsidy removal as a domestic issue, failing to acknowledge the fund’s historical advocacy for such measures.

“The IMF often promotes subsidy cuts as essential for fiscal sustainability,” Ajaaero noted, questioning the sincerity of the IMF’s disavowal in a country that has historically complied with its recommendations.

The NLC stressed that Nigerians are aware of the detrimental effects of these policies and the potential backlash that may arise from the subsidy removal.

Highlighting the disconnect between IMF policies and the realities faced by Nigerians, the NLC criticized the fund’s suggestion that governments mitigate social costs through expanded protections.

The union argued that this approach often leads to ineffective solutions, leaving citizens dependent on inadequate handouts while essential goods become increasingly unaffordable.

The NLC reiterated the need for Nigeria and other developing countries to reclaim their economic sovereignty, resisting externally imposed policies that overlook local contexts.

“The IMF’s denial of involvement in Nigeria’s subsidy removal seems insincere,” the union stated, urging the need for economic strategies that prioritize genuine growth, social welfare, and equity.

The NLC called on the IMF and World Bank to reconsider their approaches, emphasizing that their policies should not hinder Nigeria’s economic progress.

“We may soon be compelled to demand their complete withdrawal from Nigeria,” Ajaaero warned, highlighting the ongoing struggle for economic independence and social justice in the nation.