NLC Calls on IMF and World Bank to Stop Lending to Unaccountable Government

The Nigeria Labour Congress (NLC) has issued a strong call to the International Monetary Fund (IMF) and the World Bank, urging them to cease lending to governments that fail to be accountable to their citizens. According to the NLC, loans provided to such governments only exacerbate governance crises, pushing nations deeper into debt and underdevelopment.

This statement was made by NLC President Joe Ajaero at the 2025 high-level meeting of the global labour movement, the IMF, and the World Bank, which took place in Washington, D.C. Ajaero’s remarks were a direct critique of the financial policies and loan practices of the two global institutions, which he believes have contributed to the worsening economic conditions in developing countries like Nigeria.

Ajaero argued that the economic policies endorsed by the IMF and World Bank have led to increasing poverty and undermined Nigeria’s development. “We represent the voice of those who are marginalized and those who are supposed to benefit from taxation but who have unfortunately in many countries begun to suffer adversely from taxation,” he explained. He also emphasized that progressive taxation and fiscal consolidation are not just economic matters, but also moral imperatives.

He went on to highlight the inequalities perpetuated by the global economic system, particularly in developing countries like Nigeria. “The current global economic order perpetuates inequality, with tax policies in many developing nations placing a disproportionate burden on the poor,” he said. Ajaero called for a more equitable approach, urging the IMF and World Bank to support nations in creating tax policies that protect the most vulnerable.

The NLC president also called for greater transparency, accountability, and the protection of workers’ rights in the policies of these global financial institutions. “This is not an accident, it is a systemic failure that demands urgent correction,” Ajaero said. He pointed to decades of austerity measures and structural adjustment programs prescribed by the IMF and World Bank, arguing that these policies prioritize debt servicing over human development.

“These policies have eroded public services, weakened labour rights, and deepened poverty,” Ajaero continued. “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? Is it a deliberate strategy to push nations like Nigeria further into a cycle of debt and underdevelopment?”

In a strong condemnation of the current practices, Ajaero urged the IMF and World Bank to stop lending to governments that are unaccountable to their people. “Such loans only deepen the crisis of governance and push nations further into the abyss of debt and underdevelopment,” he said. He stressed that the only way forward is for the institutions to prioritize sustainable development through transparency and accountability.

Instead of encouraging nations to rely on loans, Ajaero called on the IMF and World Bank to focus on empowering governments to create equitable tax systems. “The path to sustainable development is not through debt traps and regressive tax policies,” he argued. “It is through empowering nations to build equitable tax systems that serve the many, not the few. The time for change is now.”