Sagay Sounds Alarm: IMF And World Bank Recommendations Harm Nigeria’s Growth

Sagay Sounds Alarm: IMF And World Bank Recommendations Harm Nigeria’s Growth

Prominent legal expert and Senior Advocate of Nigeria, Professor Itse Sagay, has advised President Bola Tinubu’s administration to reconsider implementing economic policies recommended by the World Bank and the International Monetary Fund (IMF), arguing that....READ MORE..

these prescriptions have worsened the economic hardship faced by Nigerians.

In an interview with ireporteronline, Sagay criticized the removal of the petrol subsidy, which was based on recommendations from the Bretton Woods institutions. He described the timing of the policy as detrimental and argued that such economic strategies have historically failed in developing countries, exacerbating their financial difficulties.

“I opposed the removal of the subsidy before we achieved self-sufficiency in petrol production,” Sagay said. “Its removal has led to significant economic pain, including a severe devaluation of the naira and rising costs of living, particularly in food and transportation.”

He cited the extreme rise in transportation costs as an example, with the fare for a trip from Lagos to Delta State jumping from N5,000 to N65,000, underscoring the harsh reality for Nigerians under these policies.

Sagay also expressed concerns over the broader impact of IMF and World Bank interventions in developing nations. He pointed out that countries that have adopted such policies in the past have faced economic decline, leading to misery for their populations. “From our experience with African nations, these policies always fail, causing increased suffering, until they are eventually abandoned,” he stated.

The legal scholar reiterated his stance on the petrol subsidy, emphasizing that removing it before Nigeria could fully meet its domestic demand for petrol was a grave mistake. He hopes that, at some point, the government will reconsider these policies to avoid further damage to the economy.

On tax reforms, Sagay voiced support for the government’s efforts, particularly those aimed at promoting productivity and addressing inequities in tax revenue distribution. He highlighted the disparity faced by states like Lagos, which shoulder a disproportionate responsibility for infrastructure but receive inadequate revenue. He argued that reforms linking earnings to productivity will encourage states to become more self-reliant and ensure a fairer distribution of resources.

Sagay concluded by urging the government to reassess its economic strategy while backing reforms that foster growth, fairness, and sustainable development.

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