NLC condemns call for subsidy removal by IMF

Nigeria Labour Congress, NLC, has strongly criticized the pressure on the Federal Government to further remove subsidies on petroleum products.

A statement by Comrade Kiri Mohammed, Deputy President & chairman, Economic Commission, NLC said “the pressure of the IMF on the Federal Government to withdraw subsidies on petroleum products is rather unfortunate. For an organization whose history is replete with prescribed policies in the developing world which have only served to pauperise the citizens of nations implementing such policies, one would expect that its officials would be more circumspect in continuing to ram down the throat of these nations the same destabilizing policies.”

He recalled that “At a WIT press briefing by the Senior Resident, Country Representative of the International Monetary Fund,IMF, while presenting the highlights of the Staff Report on the 2012 Article IV Consultation, once more reiterated the body’s repeated advice to the Federal Government to withdraw the subsidy on petroleum products. According to him, “elimination of subsidy would help fiscal adjustment, mobilise non oil revenues, strengthen oil price rule and oil saving mechanism.”

“The IMF, unfortunately, does not bear the mandate of and is not accountable to the citizens who bear the brunt of the impact of these policies. Governments must realize that they rule and implement policies on behalf of citizens. In the incessant contestations over petroleum products pricing in our nation, some of which have threatened the very foundation of the nation and resulted in loss of lives and other grave costs, where has the IMF being?

NLC noted that while it has no immediate control over the games of the IMF, government should not increase petroleum price as it will be totally rejected by Nigerians.

“Government must be careful not to compound the crises of insecurity, unemployment and poverty which today confront the nation.”

“For the avoidance of doubt, the Nigeria Labour Congress remains committed to resisting any price in the name of subsidy removal,” he said.

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