The Nigeria Labour Congress (NLC) has urged the International Monetary Fund (IMF) and World Bank (WB) to stop lending money to governments that lack accountability to their citizens, warning that such loans exacerbate governance crises and push nations deeper into debt and underdevelopment.
NLC President, Joe Ajaero, made this demand during a high-level meeting between the global labour movement, IMF, and WB at the World Bank headquarters in Washington, D.C.
In his presentation titled “Progressive Taxation and Fiscal Consolidation,” Ajaero criticized the economic policies imposed by the Bretton Woods institutions, arguing that their prescriptions have worsened poverty and undermined Nigeria’s economic development.
“The IMF and World Bank have, for decades, prescribed austerity measures and structural adjustment programs that prioritize debt servicing over human development.
“These policies have eroded public services, weakened labour rights, and deepened poverty. Yet, the question we must ask is: Why do these institutions continue to lend to profligate and dictatorial governments that are unaccountable to their citizens?,” Ajaero said.
Naijaonpoint reports that he argued that fiscal challenges caused by rising debt burdens have led developing nations to impose unfair taxes on workers and the poor while multinational corporations and the wealthy evade taxation.
“Nigeria’s proposed tax bills, for instance, seek to impose levies on individuals earning as little as ₦800,000 per year (approximately $500).
“If that is not a regressive tax policy, then nothing else qualifies,” Ajaero said.
‘IMF, World Bank Must Stop Funding Corrupt Governments’
Ajaero further insisted that lending to governments that do not prioritize citizens’ welfare is not development but exploitation.
“Such financial support entrenches corruption, fuels inequality, and undermines democracy. The workers and citizens of these nations bear the brunt of these policies, while the elite and their foreign enablers profit,” he stated.
He urged the IMF and World Bank to rethink their approach and support nations in designing progressive tax policies that protect the vulnerable, rather than imposing blanket austerity measures.
“Instead of prioritizing debt repayment over citizens’ welfare, the IMF and WB should support inclusive tax systems that consider the input of key national stakeholders, especially workers,” he emphasized.
Calling for tax justice, Ajaero insisted that economic policies should focus on taxing wealth instead of deepening poverty.
“The IMF and World Bank must advocate higher taxes on luxury goods, capital gains, and the ultra-wealthy instead of increasing taxes on food, energy, electricity, telecommunications, and informal economy workers,” he stated.
He also urged the institutions to ensure multinational corporations pay their fair share of taxes and stop shifting profits to tax havens.
“Fiscal consolidation must not come at the expense of the poor but must be rooted in equity and justice,” Ajaero asserted.
Call For Global Tax Reforms
The NLC President also backed the proposed United Nations Convention on Tax, which seeks to introduce global tax frameworks for taxing digital corporations operating in multiple countries.
He concluded by urging the IMF and World Bank to prioritize transparency, accountability, and the protection of workers’ rights instead of enabling debt dependency.
“The path to sustainable development is not through debt traps and regressive tax policies.
“The IMF and World Bank must stop pushing developing nations into economic hardship. The time for change is now,” Ajaero stated.