Prominent legal scholar and Senior Advocate of Nigeria, Itse Sagay, has raised concerns over the economic policies prescribed by the World Bank and International Monetary Fund (IMF) for Nigeria. Speaking with Punch Newspaper, Sagay advised President Bola Ahmed Tinubu’s administration to reevaluate these recommendations, emphasizing that they often exacerbate economic hardships for Nigerians. He particularly criticized the removal of the petrol subsidy, a decision he attributed to the influence of these global institutions.
Sagay described the subsidy removal as ill-timed and harmful to Nigeria’s economy. He argued that the decision, made without ensuring local production of petrol, has intensified economic challenges for Nigerians, citing rising costs of living and transportation. According to him, the policy has left many citizens grappling with severe financial difficulties.
Highlighting the historical failures of IMF and World Bank policies in developing nations, Sagay asserted that such recommendations frequently result in deeper economic struggles and long-term setbacks. He noted that countries adopting these measures often face significant hardships, with little evidence of sustained economic improvement.
Sagay further illustrated the adverse effects of these policies on daily life in Nigeria, using transportation costs as an example. He pointed out that a trip from Lagos to Delta State now costs substantially more than before the subsidy removal, reflecting the direct impact on ordinary citizens and the worsening financial strain.
He criticized the nature of IMF and World Bank prescriptions, describing them as harsh and counterproductive. Sagay argued that these measures prioritize austerity over growth, often leaving developing countries in precarious situations. He called for Nigeria to pursue more sustainable and context-specific economic strategies.
Reflecting on his advice to President Tinubu, Sagay said: “Before Tinubu took power, I urged him not to remove the subsidy on petrol until we were fully producing it internally. Unfortunately, that wasn’t done, and the removal of the subsidy has plunged us into various serious economic and livelihood hardships.”
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