The Nigeria Labour Congress (NLC) has fiercely criticized the International Monetary Fund (IMF) for denying its role in influencing Nigeria’s controversial fuel subsidy removal. Labeling the IMF’s denial as “cynical,” the NLC accused the organization of pushing harsh economic policies that harm developing nations like Nigeria.
In a statement on Sunday, NLC President Joe Ajaero condemned the IMF’s tactics, asserting that its so-called “growth strategies” have worsened socioeconomic conditions in Nigeria and similar economies. “The IMF’s recent statement shows evasion, framing Nigeria’s subsidy removal as a ‘domestic decision,’ despite their powerful sway over policy direction,” Ajaero said.
The IMF’s African Region Director, Abebe Selassie, stirred further controversy last week at the IMF and World Bank Annual Meetings in Washington, D.C., where he dismissed the IMF’s involvement in Nigeria’s subsidy removal. According to Selassie, the decision was a “domestic issue,” downplaying the IMF’s track record of advocating subsidy cuts as a route to “fiscal sustainability.”
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Ajaero challenged the IMF’s stance, highlighting the organization’s influence on Nigerian policies. “Nigerians are aware of the IMF’s role in pushing subsidy removal and are seeing firsthand the harmful impacts of these policies,” he said. The NLC slammed IMF policies that suggest “social protections” as a buffer, noting that these measures often fail to address the real cost-of-living crisis for everyday Nigerians.
The union called for Nigeria and other developing nations to reclaim their economic sovereignty by rejecting policies imposed by international financial institutions. “The IMF’s denial of involvement in Nigeria’s subsidy removal is unconvincing,” stated Ajaero, urging for economic policies that genuinely prioritize growth, social welfare, and equity.
The NLC further urged the IMF and World Bank to rethink their strategies in Nigeria, warning of potential calls for a complete withdrawal from the country if their policies continue to hinder economic progress. “We will not sit idly by; if necessary, we will demand their exit from Nigeria,” Ajaero declared.
