NLC URGES IMF, WORLD BANK TO HALT LOANS TO UNACCEPTABLE GOVERNMENTS. (PHOTO).

 

In a bold move, the Nigeria Labour Congress (NLC) has called on the International Monetary Fund (IMF) and the World Bank to stop lending money to governments that fail to account to their citizens. NLC President Joe Ajaero made this plea during the 2025 high-level meeting of the global labour movement, IMF, and World Bank at the World Bank office in Washington, D.C.¹

Ajaero emphasized that loans to unaccountable governments only exacerbate the crisis of governance and push nations deeper into debt and underdevelopment. He also criticized the IMF and World Bank's economic prescriptions, which have worsened poverty and undermined Nigeria's development over the years.

The NLC president urged the Bretton Woods institutions to abandon blanket austerity measures and instead support developing nations in crafting progressive tax policies that protect the poor and vulnerable. He argued that the current global economic order perpetuates inequality, with regressive tax policies placing a disproportionate burden on the poor.

Ajaero cited Nigeria's proposed tax bills as an example, which plan to impose taxes on individuals earning as little as N800,000 per annum (approximately $500 USD). He described this as a regressive tax proposal that would further entrench corruption, inequality, and undermine democracy.

The NLC's call to action comes as the IMF and World Bank face growing criticism for their lending practices and economic policies. As Ajaero noted, lending to unaccountable governments is not development, but exploitation. He urged the IMF and World Bank to rethink their approach and prioritize transparency, accountability, and the protection of workers' rights.