Recently, the leadership of the Nigeria Labour Congress (NLC) hosted a two-member delegation from the International Monetary Fund (IMF), comprising the IMF’s Resident Representative for Nigeria, Christian H. Ebeke, and Axel Schimmelpfennig from Washington, D.C.
Naijaonpoint reports that the delegation’s visit aimed to evaluate the impact of the current socioeconomic conditions and government policies on Nigerian workers and the broader population.
Led by Schimmelpfennig, the IMF representatives sought to gather insights from the NLC regarding the state of Nigeria’s labour market, with the information intended to inform the IMF’s annual country report for Nigeria.
It was reported that preparations for this meeting had been underway since the NLC President’s prior discussions with World Bank and IMF officials in Washington.
Upon their arrival at Labour House, the NLC leadership extended a warm welcome to the IMF team, who then briefed them on the purpose of their visit, which was initiated by the Fund.
According to Vanguard, sources indicated that the IMF representatives recognised the fiscal challenges faced by the Nigerian government since taking office and clarified that their recommendations are advisory rather than obligatory, tailored to the specific circumstances of each country.
The delegation expressed concern that governments frequently do not adhere strictly to IMF recommendations, instead modifying them to suit political agendas, thereby distancing the IMF from the negative impacts of certain recent economic reforms in Nigeria.
Nonetheless, the IMF team expressed a desire for ongoing collaboration with the NLC in the future.
Your Measures Have Only Exacerbated The Living Condition Of Nigerians – Ajaero Tells IMF
Responding, the President of the NLC, Joe Ajaero, emphasised that governance must prioritise the welfare of citizens rather than profit generation.
He expressed his disapproval of the austerity measures frequently suggested by the IMF, pointing out that these have exacerbated the living conditions for Nigerians.
Ajaero specifically noted the elimination of fuel subsidies, which he claimed has resulted in heightened suffering, hunger, and poverty among both workers and the broader population.
The NLC President contended that there was no genuine subsidy to eliminate initially, as the government was already benefiting from crude oil sales.
He characterised the ‘subsidy removal’ as merely a pretext for raising fuel prices and raised concerns about the allocation of the revenue supposedly saved from this removal, particularly given the government’s ongoing heavy borrowing.
Ajaero pointed out that the cost of essential services, such as education and transportation, has tripled, leading to widespread hardship.
He condemned the growing disparity between the worsening living conditions of citizens and the increasing wealth of government officials.
Ajaero emphasised that genuine reforms must prioritise the well-being of the populace over the interests of those in authority.
He also condemned the government for failing to engage essential stakeholders before the execution of the subsidy removal policy.
He pointed out that this lack of consultation has intensified the nation’s economic difficulties.
He remarked that inclusive discussions could have led to more effective strategies and results, expressing regret that the government has distanced itself from crucial insights.
On the national minimum wage, “the NLC President complained that the ₦70,000 wage is not being implemented sincerely across all levels of government. Instead, the government has continued to impose additional taxes, worsening the financial burden on citizens.”
Ajaero urged “the IMF to advise the government to ease this pressure and allow citizens to breathe.”
He warned that rising poverty levels could lead to social unrest if left unaddressed.
He concluded that the current reforms have only widened the gap between the ruling class and the people, worsening the lives of ordinary Nigerians while enriching those in power.