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NLC tells IMF, World Bank to stop aiding unaccountable leaders

Published

2 months ago

February 24, 2025

NLC president, Comrade Joe Ajaero

NLC tells IMF, World Bank to stop aiding unaccountable leaders

Nigeria Labour Congress, NLC, weekend in Washington DC, United States, told the International Monetary Fund, IMF and World Bank, WB, to stop lending money to governments not accountable to their citizens.

According to NLC, “such loans only deepen the crisis of governance and push nations further into the abyss of debt and underdevelopment.”

President of NLC, Joe Ajaero, who stated this, also told the global financial institutions how their economic prescriptions over the years had continued to worsen poverty and undermine Nigeria’s development.

Ajaero, who spoke at the 2025 high-level meeting of the global labour movement, the IMF and WB at the World Bank office in Washington, pleaded with the Brettonwoods institutions to stop imposing blanket austerity measures, but support developing nations in crafting progressive tax policies that protect the poor and vulnerable.

In a presentation, titled “Progressive Taxation and Fiscal Consolidation,” Ajaero told his audience: “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.

‘’Progressive taxation and fiscal consolidation are not merely an economic issue, it is a moral imperative and a key question of social justice.

“The current global economic order, influenced heavily by institutions such as the IMF and World Bank, often perpetuates inequality rather than addressing it. In many developing nations, including Nigeria, tax policies are regressive, placing a disproportionate burden on the poor, while allowing the wealthy and multinational corporations to evade their fair share. ‘’This is not an accident, it is a systemic failure that demands urgent correction. The IMF and World Bank have, for decades, prescribed austerity measures and structural adjustment programs that prioritize debt servicing over human development.

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‘’These policies have eroded public services, weakened labour rights, and deepened poverty. 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?

“The fiscal challenges on developing nations as a result of debt pressures and IMF and WB prescriptions have compelled them to seek avenues to remain fiscally solvent. Thus, all manner of taxes are placed on workers and the poor who do not have means of evading such taxes.

‘’Nigeria in its proposed tax bills, plans to impose taxes on people who earn just N800,000 per annum or U$500 (five hundred US Dollars per annum). If that is not a regressive tax proposal, nothing else will.

“Lending to governments that do not prioritise the welfare of their people is not development; it is exploitation. It entrenches corruption, fuels inequality, and undermines democracy. The workers and citizens of these nations are left to bear the brunt of these policies, while the elite and their foreign enablers profit.

‘’IMF and WB must fashion a way to stop mortgaging the future of these nations by its continued lending to such regimes.

“We call on the IMF and World Bank to rethink their approach. Instead of imposing blanket austerity measures, IMF and WB must support developing nations in crafting progressive tax policies that protect the poor and vulnerable.

‘’Thus IMF and WB should support inclusive tax systems. In other words, the conceptualisation and implementation of tax systems must allow the participation of key national stakeholders, especially workers who constitute the bulk of tax payers in developing economies.

“Whether a tax is regressive or progressive begins at the table where it was conceived. Any group that is not at the table is on the menu. The new proposed tax bills in Nigeria is not inclusive, despite our loud cries at the formation of the tax committee, the government denied workers’ representation thus, its passage into law has become stymied.

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‘’IMF and WB must, therefore, encourage nations to allow for the participation of all critical stakeholders in all the processes from conceptualisation to the operationalisation of their tax systems. The use of social dialogue must, therefore, be prioritised.

“IMF and WB must tax wealth and not poverty. They should Implement higher taxes on luxury goods, capital gains, and the incomes of the ultra-wealthy. Tax justice is at the heart of social justice and global sustainability.

‘’So, IMF and WB should be at the forefront of co-creating a just and equitable world. You cannot talk of progressive tax when you increase taxes on food, energy, electricity, telecommunications, street traders, artisans and the informal economy workers, all in the guise of formalisation of the informal economy.

“The IMF and WB should close loopholes by ensuring multinational corporations pay their fair share of taxes in the countries where they operate. These institutions should invest in social protection by using tax revenues to fund education, healthcare and social safety nets that uplift the most vulnerable.

“Fiscal consolidation must not come at the expense of the poor. It must be rooted in equity and justice. The IMF and World Bank have a moral obligation to ensure that their policies do not exacerbate inequality or undermine the sovereignty of nations.

‘’Reduction of social inequality must drive policy prescriptions and not social mobility. The IMF and WB should advocate and support the proposed UN Convention on Tax which was initiated late 2022 to, among other things, take care of taxing digital organizations’ profits made in countries other than where they are physically located and to include all countries of the world in generating global tax frameworks.

“I urge these institutions 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.

‘’Instead, the IMF and World Bank must prioritize transparency, accountability, and the protection of workers’ rights. The path to sustainable development is not through debt traps and regressive tax policies.

‘’It is through empowering nations to build equitable tax systems that serve the many, not the few. The time for change is now.”

NLC tells IMF, World Bank to stop aiding unaccountable leaders

Related Topics:Featured IMF NLC World Bank

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Akpabio to represent Tinubu at Pope Francis funeral

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April 25, 2025

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Senate President, Godswill Akpabio

Akpabio to represent Tinubu at Pope Francis funeral

President Bola Tinubu has sent a five-member delegation to the funeral of Pope Francis, the head of the Roman Catholic Church, scheduled for Saturday in Vatican City.

The special adviser to the president on information and strategy, Bayo Onanuga, said in a statement on Friday that Senate President Godswill Akpabio would head the high-level delegation.

The delegation also includes the Minister of State for Foreign Affairs, Bianca Ojukwu; the president of the Catholic Bishops Conference of Nigeria, Archbishop Lucius Iwejuru Ugorji; the Archbishop of Sokoto Diocese, Archbishop Matthew Kukah; and the Archbishop of Abuja Diocese, Archbishop Ignatius Kaigama.

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Mr Onanuga said, “The delegation will formally deliver a letter conveying President Tinubu’s sympathy and condolences on Pope Francis’ passing to the acting head of the Vatican.

“On Monday, President Tinubu joined the Catholic faithful and Christians worldwide to mourn the death of Pope Francis, whom he described as a humble servant of God, a tireless champion of the poor, and a guiding light for millions.”

He quoted Mr Tinubu as saying that the 88-year-old pontiff’s death last Monday, which came after the celebration of Jesus Christ’s resurrection, represents his sacred return to his Maker.

Akpabio to represent Tinubu at Pope Francis funeral

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Rivers Sole administrator finally appears before Reps, seeks more time

Published

55 minutes ago

April 25, 2025

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Sole Administrator of Rivers State, Vice Admiral (Rtd) Ibok-Ete Ekwe Ibas

Rivers Sole administrator finally appears before Reps, seeks more time

The Sole Administrator of Rivers State, Vice Admiral Ibok-Ete Ibas (rtd.), has finally met with the House of Representatives Ad-Hoc Committee investigating the declaration of a state of emergency in the state.

Ibas, who had missed two earlier invitations, appeared before the lawmakers at the National Assembly on Friday and requested a fresh date for a more detailed briefing.

Before the session moved behind closed doors, Ibas addressed the committee led by House Leader, Prof. Julius Ihonvbere. He began by expressing appreciation for the panel’s efforts in upholding democratic principles and offered an explanation for his previous absences.

He said the earlier non-appearances were not intentional but resulted from the challenges of administering a state under emergency, compounded by the timing of public holidays and weekends.

“The absence, of course, was not out of disregard, but rather due to the weighty and urgent demands of stabilising governance in a state under a declared emergency,” Ibas stated.

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He noted that while the security and political atmosphere in Rivers had improved, it remained fragile, necessitating a well-prepared and comprehensive engagement with the committee.

“The situation in Rivers State was relatively calm, but still fragile,” he said, while requesting more time to properly brief the panel.

Following the meeting, the committee issued a statement acknowledging Ibas’s apology and confirming that a new date would be set for the postponed engagement.

“The Committee has magnanimously accepted his apology,” the statement read, adding that Ibas had earlier sent a formal letter of regret and had shown “respect and responsibility” by attending the session in person.

The committee also reiterated its resolve to carry out its assignment objectively and within the bounds of its constitutional duties, citing Sections 11(4) and 88 of the 1999 Constitution. It called on all stakeholders to remain cooperative and supportive of the inquiry, stressing the importance of democratic governance and national stability.

Rivers Sole administrator finally appears before Reps, seeks more time

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Omokri : How Tinubu’s political mastery started with Abiola, says El-Rufai, Obi’s forces can’t stop him

Published

7 hours ago

April 25, 2025

Trends Admin

Abacha, Tinubu and Abiola

Omokri : How Tinubu’s political mastery started with Abiola, says El-Rufai, Obi’s forces can’t stop him

Reno Omokri, a former aide to ex-President Goodluck Jonathan, has credited President Bola Tinubu with playing a key role in the victory of the late Chief MKO Abiola during the annulled 1993 presidential election.

In a Facebook post on Thursday, Omokri argued that Tinubu’s influence and political acumen stretch far beyond recent elections, noting that opposition figures such as former Kaduna State governor Nasir El-Rufai and 2023 Labour Party presidential candidate Peter Obi lack the momentum to challenge Tinubu’s reelection in 2027.

“The recent seismic political realignments in Nigeria in favour of President Bola Tinubu should not surprise students of history,” Omokri wrote.

“Historical context is required to understand President Bola Tinubu. He did not start winning almost impossible-to-win elections in 2023. He is a veteran of such odds stacked against you elections.”

Omokri emphasized Tinubu’s pivotal role in Abiola’s 1993 campaign:”Many people forget or do not even know that then-Senator Bola Tinubu was Chief MKO Abiola’s right-hand man, helping him strategise and win the famed June 12, 1993 election upset.”

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He continued, “For roles requiring trust, with perhaps the exception of his son, Kola, and his late wife, Kudirat, there was nobody Chief Abiola looked to politically above then-Senator Tinubu. Even his political foe, Alhaji Sule Lamido, recently and grudgingly admitted it during an interview.”

Omokri described Tinubu as a uniquely skilled politician:”Hate him or love him, President Bola Tinubu is the best politician in Nigeria. He understands human nature, anticipates betrayal before it happens, and plans ahead for it.

“He also forgives easily, where there is repentance, and is able to work on the basis of no permanent enemy or friend but permanent interests.”

According to Omokri, Tinubu’s strength lies in his personal approach to politics:”But perhaps his biggest selling point is his relationship building abilities. The man knows how to reach out and touch people at the point of their need instead of waiting to get them by appealing to their greed, like his opponents.”

Looking ahead to the next general election, Omokri expressed confidence in Tinubu’s political future:”As long as God spares his life, I do not see anyone who can stop his reelection in 2027. Certainly not Nasir el-Rufai, who could not deliver his state to the APC when he was in office, how much more now that he is an out of office has been.”

He concluded with sharp criticism of Obi’s political approach:”And neither can Peter Obi, who has been exposed as an Islam-hating ‘Yes Daddy’ opportunistic politician.”