IMF, World Bank Policies Have Worsened Economic Misery In Nigeria, PRP Says

The People’s Redemption Party (PRP) has raised concern over the continuous use of the economic policies of Bretton Woods Institutions despite their monumental failures in the past, saying they would not take Nigeria to anywhere.

The party said the removal of subsidies on fuel and electricity and devaluation of currency and increases in interest rates, all International Monetary Fund (IMF) and World Bank (WB) economic policies, have combined to push the nation’s misery index to an unprecedented level.

The PRP said from 1975 till date, from Latin America to Africa and beyond, no nation prospered or progressed using IMF or World Bank economic prescriptions, adding that Nigeria witnessed the monumental failures of the policies in the 80s, and 90s.

The National Chairman of PRP, Falalu Bello in a statement titled, “President Tinubu, Let Nigerians Breath!!!”, said headline inflation is inching up to 40 per cent and rising, while poverty level is exacerbating, unemployment and under employment levels are increasing because of low capacity utilization and factory closures.

According to him, taxes are being increased not withstanding the developments so also are interest rates!

He said, “We have watched with utter dismay the inclination of the government of President Bola Tinubu towards the continuous use of Bretton Woods Institutions’ economic policy prescriptions despite their monumental failures in the past. The state of affairs of our nation, particularly the challenges of the teaming masses, is avoidable!

“President (Bola) Tinubu, as a leader of the ruling party, the APC under President Buhari was part of the Buhari regime which unfortunately ruined the Nigerian economy. However, except for terminal illness, most sicknesses are curable. The challenges posed or faced could have been addressed or better managed using unconventional and orthodox polices and certainly not the Bretton Wood Sisters’ economic policies.

“Removal of subsidies on fuel, electricity, etc., devaluation of our currency, increases in interest rates, etc., all International Monetary Fund (IMF) and World Bank (WB) economic policies, have combined to push the nation’s misery index to an unprecedented level.

“Headline inflation is inching up to 40 per cent and rising, poverty level is exacerbating, unemployment and under employment levels are increasing because of low capacity utilization and factory closures, taxes are being increased not withstanding these developments so also are interest rates! How realistic, humane, and sensible are these actions by government?

“Our party, the Peoples Redemption Party (PRP) view these developments with contempt as it appears that our leadership either are aloof to the suffering of the common man or they are following someone’s script to impoverish Nigerians. A democratically elected government should have a sense of duty, honour, and care of the electorate that brought it to power. We see none of these in our leadership today.

“Indeed, even the Western world’s institutions have come out recently to advise the Nigerian government that the policies being pursued and implemented wouldn’t take us to Eldorado or out of our woods! Yet President Tinubu, His Ministry of Finance, His Central Bank, and Economic team, are so fixated on the path of self-destruction of our economy using archaic IMF/World Bank models and methodologies.

“From 1975 till date, from Latin America to Africa and beyond, no nation prospered or progressed using IMF or World Bank economic prescriptions. Nigeria did witness the monumental failures of these policies in the 80s, and 90s. The cycle appears to be repeated, albeit as if we are either not students of history or we are on a mission to destroy our nation.

“One may wonder the rationale of tax and interest rates increases under the current atmosphere. The Manufacturers Association of Nigeria (MAN) has reported closure of over 300 companies on account of unreasonable increase in electricity tariff and these include multinationals! More are folding up, and yet there appears to be no rethink from the economic management team. This is certainly not what Nigerians bargained for!

“The PRP believes that economics, being a science of alternatives, has other options that are available for possible implementation.

“A one-sided policy that clearly is anti-masses must be revisited quickly and urgently. All actions thus far taken have inflicted more suffering on the common man, and the leaders continue to ask for patience, understanding, and tolerance in the face of hunger, malnutrition, diseases, etc., without them making any efforts to also make adjustments. To say the least, this is most unfortunate, unfair, unjust, and unethical.

“On the issue of the National Minimum Wage, our great party finds the position of government laughable and a huge joke. The government’s revenues have increased, and instead of reviewing workers’ pay commensurate to the increase in cost of living, the government is foot dragging.

“President Tinubu boasts of courage in inflicting untold hardship to the armless, harmless, and defenseless people who elected him! What an irony. Indeed, to worsen the situation, other arms of government workers’ pay are being increased at a geometric progression. Judiciary staff salaries have been increased by 300 per cent and ditto parliamentary representatives salaries. Can this be said to be fair? A 100 per cent increase in minimum wage has been on the discussion table for months before a courageous president!

“One would have thought that with enhanced revenue base from devaluation, tax increases, subsidies removal, etc., government’s debts should have been reduced, democracy dividends provided, improvement in health, education, and other social services noticed. What we see sadly is increases in debts, reduction in staff welfare, and worsening standard of living of the masses. Clearly, this government appears to be clueless, tactless, and mission visionless.

“The national economic management team should have considered a massive reduction in the cost of governance, reduction in waste, etc. We urge this team as a matter of urgency to develop and get put in place a realistic and people oriented agricultural and manufacturing policies. In the area of agriculture, we need to make agriculture an economically profitable activity as done before the IMF/World Bank visited this nation with their no subsidy to agriculture mantra whilst the developed economies they come from massively subsidize their own agriculture.

“On the manufacturing area, the import substitution policy the nation embarked upon in the 70’s was doing very well before the same IMF/World Bank made us to open our economy for dumping that had made us to be an almost totally import dependent economy. We must work on these alternatives to the Bretton Wood institutions anti-people and anti-development policies.

“We urge the government of President Tinubu to wake up from its slumber on the occasion of the 25th anniversary of civilian rule in Nigeria as well as the Eid-el-Kabir celebrations.”

Friday Olokor, Abuja

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