The Nigeria Labour Congress (NLC) has called on the International Monetary Fund (IMF) and the World Bank (WB) to halt loans to governments that lack accountability, arguing that such financial support worsens governance crises and plunges nations deeper into debt and underdevelopment.
Speaking at the 2025 high-level global labour movement meeting with the IMF and WB in Washington, NLC President Joe Ajaero criticized the institutions’ long-standing economic prescriptions, which he said have only deepened poverty and hindered Nigeria’s progress.
Ajaero urged the global financial bodies to stop enforcing blanket austerity measures and instead assist developing nations in designing fair tax policies that protect the poor and vulnerable.
“IMF and WB must stop funding governments that prioritize debt servicing over human development. Lending to leaders who do not prioritize citizens’ welfare is not development; it is exploitation,” Ajaero said.
He highlighted how regressive tax policies in Nigeria disproportionately burden workers and low-income earners while multinational corporations and the wealthy evade their fair share.
“In Nigeria, new tax bills propose levies on people earning as little as ₦800,000 annually (about $500), while the wealthy and big corporations continue to enjoy loopholes. This is unacceptable,” he stated.
Ajaero emphasized that sustainable economic development requires an inclusive tax system where workers—who form the majority of taxpayers—are actively involved in shaping fiscal policies.
He also called on the IMF and WB to support higher taxes on luxury goods, capital gains, and the ultra-wealthy while ensuring that multinational corporations pay appropriate taxes in the countries where they operate.
“Fiscal consolidation must not come at the expense of the poor. These institutions have a moral obligation to ensure their policies promote equity and justice rather than deepen inequality,” he said.
The NLC urged the IMF and WB to champion global tax reforms, including supporting the proposed United Nations Convention on Taxation, which aims to regulate digital economy taxation and ensure fairer global tax frameworks.
Ajaero concluded by demanding that the IMF and WB rethink their approach to development funding. “The time for change is now. These institutions must prioritize transparency, accountability, and policies that empower nations rather than enslave them in debt.”
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