According to Punch Newspaper, Prominent legal scholar and Senior Advocate of Nigeria, Itse Sagay, has expressed concerns over the economic policies recommended by the World Bank and the International Monetary Fund (IMF) for Nigeria. Sagay advised President Bola Tinubu’s administration to reconsider these recommendations, emphasizing that such policies worsen economic hardships for Nigerians. He criticized the recent removal of the petrol subsidy, a move he attributed to guidance from these institutions.
Sagay described the removal of the subsidy as poorly timed and detrimental to Nigeria’s economy. He argued that the decision has intensified economic challenges for citizens, citing increased costs of living and transportation. According to Sagay, this policy, implemented without ensuring local production of petrol, has left many Nigerians struggling under severe financial strain.
The legal expert pointed out the historical failure of IMF and World Bank policies in developing countries. He asserted that these recommendations often lead to deeper economic difficulties and long-term setbacks for nations that implement them. Sagay underscored that countries adopting such measures tend to face significant hardships, with little evidence of sustained economic improvement.
Sagay highlighted the impact of these policies on everyday life in Nigeria. He cited a sharp rise in transportation costs as an example, noting that a trip from Lagos to Delta State now costs significantly more than before the subsidy removal. This increase, he said, exemplifies how such policies directly affect ordinary citizens and exacerbate financial struggles.
He further criticized the nature of IMF and World Bank prescriptions, describing them as harsh and counterproductive. Sagay argued that these institutions often recommend measures that prioritize austerity over growth, leaving developing nations in precarious situations. He stressed the need for Nigeria to adopt more sustainable and context-specific economic strategies.
Sagay said, “Before Tinubu took power, I urged him not to remove the subsidy on petrol until we are fully producing it internally. Unfortunately, that was not done and that petrol subsidy removal has plunged us into various serious economic, life hardship.