ActionAid Nigeria Slams World Bank, IMF For ‘Devastating’ Economic Policies In Nigeria

Abuja, Nigeria – ActionAid Nigeria has launched a scathing attack on the World Bank and International Monetary Fund (IMF), accusing the two international financial institutions of promoting policies that have caused immense hardship for Nigerians over decades.

The organization specifically condemned the recent statement by the World Bank’s Chief Economist, Mr. Indermit Gill, who called for continued economic reforms in Nigeria for the next 10-15 years.

In a statement issued on Tuesday, ActionAid Nigeria’s Country Director, Andrew Mamedu, described Gill’s statement as “misguided and insulting” to the millions of Nigerians facing unprecedented economic hardship.

“This call assumes that continuity and persistence in these policies will yield transformative results, but the evidence tells otherwise,” Mamedu stated.

He argued that the proposed reforms are “disconnected from the immediate socio-economic realities of Nigeria,” particularly concerning poverty, weak institutional capacity, and structural economic deficiencies.

Mamedu specifically targeted the World Bank’s and IMF’s influence on Nigeria’s economic policies, citing the devastating legacy of the Structural Adjustment Programme (SAP) introduced in the late 1980s.

“SAP crippled our local industries, especially the textile sector, and opened the floodgates for Nigeria to become heavily dependent on imported goods,” he said.

Mamedu pointed to the fact that Nigeria’s textile industry, once a vibrant hub employing hundreds of thousands of workers, has been decimated by IMF-driven policies that forced cuts in subsidies, import liberalization, and currency devaluation.

He highlighted that over 90% of textile products used in Nigeria are now imported, primarily from countries in the Global North, a clear indication of the disastrous impact of these policies on local industries and jobs.

Mamedu further criticized the recent reforms implemented by the Nigerian government, including fuel subsidy removal and exchange rate unification, claiming they have exacerbated the economic hardship faced by small businesses and ordinary Nigerians.

According to the Association of Small Business Owners of Nigeria (ASBON), over 8 million small businesses have shut down within the past 18 months due to the impact of these policies.

He also highlighted the negative consequences of the exchange rate unification, which has driven inflation to a 28-year high and further eroded household incomes.

The removal of fuel subsidies, implemented without adequate compensatory mechanisms, has also significantly impacted the livelihoods of many Nigerians.

While acknowledging the World Bank’s call for safety nets to mitigate the negative effects of these reforms, Mamedu insisted that such measures should be effective, transparent, and sustainable, not reliant on debt-fueled international loans.

“It is not only unacceptable but inhumane to ask Nigerians to endure 15 more years of suffering in the name of reforms that have historically failed us,” he declared.

“Millions of Nigerians can barely afford food, fuel, or basic services today. Asking them to wait for over a decade for ‘things to get better’ is an affront to their dignity and a reckless gamble with the nation’s future.”

ActionAid Nigeria demanded that the Nigerian government re-evaluate its reliance on the World Bank’s economic blueprint and prioritize the welfare of its people.

“The government must reject the idea that growth must come at the expense of human lives and begin to invest meaningfully in local industries, small businesses, and sustainable economic models that empower Nigerians rather than enslave them,” Mamedu concluded.

The organisation emphasised the need for accountability and a people-centred approach to reform, calling for an end to corruption, particularly within the Nigerian National Petroleum Corporation (NNPC), which has been accused of mismanagement of funds.

ActionAid Nigeria’s statement comes amidst growing public dissatisfaction with the economic policies being implemented in Nigeria.

It remains to be seen whether the government will heed the organization’s call for a paradigm shift in its economic strategy.