In a powerful call for change, the Nigeria Labour Congress (NLC) has urged the World Bank and the International Monetary Fund (IMF) to stop lending to governments that fail to serve their citizens with transparency and accountability.
President of the NLC, Joe Ajaero, made the impassioned plea during the 2025 high-level meeting of the global labor movement, the IMF, and the World Bank, held at the World Bank headquarters in Washington, D.C.
Ajaero delivered a scathing critique of the economic policies endorsed by the IMF and World Bank, which he argues have exacerbated poverty and stunted Nigeria’s progress.
He specifically pointed to the controversial removal of fuel subsidies, a move that he believes has been heavily influenced by these financial institutions. Ajaero also voiced his concern over the detrimental impact of their economic prescriptions on Nigeria’s future.
“Stop imposing blanket austerity measures that strangle developing nations,” Ajaero declared. “Instead, support these nations in crafting progressive tax policies that protect the most vulnerable.” His words were not just economic commentary; they were a call for social justice, urging a complete overhaul of the global financial order that, in his view, prioritizes the interests of the elite and multinational corporations while neglecting the needs of ordinary citizens.
Ajaero’s presentation, titled Progressive Taxation and Fiscal Consolidation, went beyond financial theory—it resonated as a moral and ethical imperative. “Progressive taxation is not just an economic issue; it is a question of social justice,” he emphasized, shedding light on how regressive tax policies in developing nations, like Nigeria, are forcing the poor to bear an unfair burden. Meanwhile, the wealthiest individuals and multinational corporations manage to dodge their fair share of taxes, perpetuating inequality.
“The policies of the IMF and World Bank are not mere missteps—they are systemic failures that have pushed countries like Nigeria into cycles of debt, poverty, and underdevelopment,” Ajaero declared. “For decades, these institutions have recommended austerity measures and structural adjustment programs that prioritize debt repayment over human development, eroding public services and undermining workers’ rights. But why do these institutions continue to lend to governments that are unaccountable to their people? Is this a strategy to keep nations like Nigeria in a perpetual state of dependence?”
Ajaero highlighted the alarming consequences of these financial prescriptions: “The people who suffer most are the workers and the poor, who are taxed to the hilt while the elite and multinational corporations evade responsibility.
In Nigeria, the government plans to impose taxes on individuals earning just N800,000 annually (approximately $500). How can that be anything other than regressive?”
He warned that continued lending to governments that do not prioritize the welfare of their citizens is not development—it is exploitation. “It entrenches corruption, fuels inequality, and undermines democracy,” Ajaero said. “The workers and citizens are left to suffer while the powerful few continue to profit. IMF and World Bank, you must stop mortgaging the future of these nations by continuing to fund such regimes.”
Ajaero called on the IMF and World Bank to rethink their approach entirely. Instead of imposing harsh austerity measures that harm the poorest, he argued that these institutions should support the creation of progressive tax systems that protect the vulnerable. “IMF and World Bank, you must help countries craft tax policies that are inclusive and equitable. Tax systems must be developed with input from all key stakeholders—especially workers, who make up the majority of taxpayers in many developing nations.”
Drawing attention to Nigeria’s proposed new tax policies, Ajaero shared a troubling reality: “The Nigerian government has shut out workers from the tax committee, and now we are facing tax bills that are not just unjust but punitive. Without the voice of the people in the decision-making process, these policies will only serve to further entrench inequality.”
Ajaero’s message was clear: the IMF and World Bank must support tax reforms that tax wealth, not poverty. He called for higher taxes on luxury goods, capital gains, and the incomes of the ultra-wealthy, stressing that tax justice is a fundamental pillar of social justice and global sustainability.
“Let the IMF and World Bank lead the charge in creating a just and equitable global economy,” Ajaero concluded. “It’s time for a new financial order—one that prioritizes the well-being of the people over the interests of the powerful few.”
In this impassioned address, Ajaero didn’t just challenge global financial institutions; he set the stage for a transformative conversation on global inequality, urging the IMF and World Bank to reconsider their role in shaping the future of developing nations.
The world is watching to see if these institutions will rise to the challenge or continue to perpetuate the status quo.
