A few days ago, the leadership of the Nigeria Labour Congress, NLC, received a two-man delegation from the International Monetary Fund, IMF, comprising the IMF Resident Representative for Nigeria, Christian H. Ebeke, and, Axel Schimmelpfennig from Washington, D.C.
The purpose of the visit was to assess how Nigerian workers and the general populace are being affected by the current socioeconomic environment and the hardship resulting from government policies.
The IMF delegation , led by Schimmelpfennig also sought insights from the NLC regarding the state of the labour market in Nigeria. According to them, the information gathered would contribute to the IMF’s annual country report for Nigeria.
Vanguard learned that preparations for the meeting had been ongoing since the NLC President’s earlier meeting with officials from the World Bank and the IMF in Washington.
IMF explains reasons for visit
Upon arrival at Labour House, the NLC leadership welcomed the IMF before the team briefed the NLC leadership on their mission, since the meeting was held at the instance of the Fund.
Sources at the meeting disclosed that the IMF team acknowledged that the Nigerian government has been grappling with fiscal challenges since assuming office. They emphasized that the IMF’s recommendations are purely advisory and not mandatory, based on the prevailing realities in each country.
The delegation expressed concern that, often, governments do not follow the IMF’s recommendations to the letter, instead adapting them to align with political objectives. In effect, the IMF attempted to distance itself from the adverse consequences of some recent economic reforms in Nigeria.
Nevertheless, the IMF team requested continued engagement with the NLC going forward.
Ajaero’s response
In response, the NLC President made it clear that governance should prioritize citizens’ welfare over profit-making.
He criticized the austerity measures often recommended by the IMF, noting that they have worsened living conditions for Nigerians.
It was gathered that Ajaero particularly highlighted the removal of fuel subsidies, which he said has led to increased suffering, hunger, and poverty among workers and the general population.
The NLC President argued that t”here was no real subsidy to remove in the first place, as the government was already profiting from crude oil sales.
He described the “subsidy removal” as merely a justification for increasing fuel prices. He equally questioned the use of the revenue purportedly saved from the subsidy removal, especially since the government continues to borrow heavily.
“He 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 emphasized that “genuine reforms should improve the welfare of the people, not enrich those in power. He also criticized the government for not consulting key stakeholders before implementing the subsidy removal policy.
This exclusion, he said, has exacerbated the country’s economic challenges. “He noted that inclusive dialogue could have produced better strategies and outcomes, lamenting that the government has isolated itself from valuable advice.”
On the national minimum wage, “the NLC President complained that the N70,000 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.”