₦airaland Forum

Prominent legal scholar and Senior Advocate of Nigeria, Itse Sagay, has cautioned President Bola Tinubu’s administration against implementing economic policies recommended by the World Bank and International Monetary Fund, arguing that such prescriptions exacerbate hardship for Nigerians.

Speaking in an interview with The PUNCH, Sagay criticised the decision to remove the petrol subsidy based on advice from the Bretton Woods Institutions, describing it as ill-timed and detrimental to the economy.

He noted that historically, IMF and World Bank policies have failed in developing countries, plunging them into deeper economic difficulties.

“I was against the removal of subsidy before we became self-sufficient in internal production of petrol,” Sagay said. “The removal has caused severe economic hardships, including a dramatic crash of the naira and soaring costs of food and transportation.”


He highlighted the suffering of Nigerians, citing the increase in transportation costs, such as a trip from Lagos to Delta State rising from N5,000 to N65,000, and called for a reversal of these policies.

Sagay further stated that the IMF and World Bank often propose “harsh and counterproductive” policies to developing nations, leading to failure and misery in countries that adopt them.

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.

“My personal belief is that the IMF, World Bank and these Western economic institutions always prescribe very harsh policies for developing countries.

“I do not know any developing country that has adopted these policies which have been successful economically. All those who adopted it in the past failed because their situation got worse until they tossed out those policies and started again.

“From our experience with other African countries, these IMF, and World Bank policies have always failed and have always brought suffering, and misery to the countries to which they are applied. So I hope that somewhere along the way, these policies will be reversed.”

On tax reform bills, Sagay expressed support, arguing that the reforms would push states to increase productivity and reduce the inequities in tax revenue distribution.

He emphasised that states should contribute proportionally to the revenue they receive.

“Lagos, for example, bears the burden of providing infrastructure for a large population but does not get revenue commensurate with this responsibility,” Sagay noted. “A reform that ties earnings to productivity is fair and will encourage states to be more self-reliant.”

Sagay urged the government to reconsider its economic approach while supporting reforms that incentivise productivity and fairness.

Source: https://punchng.com/WBank-IMF-advisories-harmful-to-Nigeria-Sagay-warns-Tinubu

Sagay is spot on.

Oh boy! This administration is dead set on blaming it all on the World Bank, IMF, or even the West. Nigeria is truly in deep shitee but worse the people will still bite down on every single one of the many lies. 😩😩😩😩😩😩

Even after 1986 Structural Adjustment Programme disaster, one still listens to them. That is foolishness of highest order.

Prof. Sagay, don't warn him. Let him go ahead with his devilish plans. Clueless and tribalistic Nigerians are loving it. By the way, I don't trust him or the APC Tax Reform Bill. Nothing good can come out from APC (Mark my words for this). APC is a party of fraud. It's also ironic that he's seeking partnership from France, a country many African nations have cut ties with. I fear the Tax bill's implementation will harm Nigerians. When the rich are taxed, they'll just increase prices, indirectly affecting the poor who aren't taxed. It's a vicious cycle.


APC dey whine una

Tinubu will continue to implement their policies because he needs to be collecting their loans... He knows if he doesn't cooperate with them no loans for him and his goons to collect and share

The people in government don't care about the population. If they did, policy that would both help the country and not impoverish the people through the reduction in purchasing power would have been sought.

I mean, which normal thinking person would want to reduce the purchasing power of an already poor population? It wasn't IMF or World Bank speaking then, it was the Bola Ahmed.

If I would say it, the government is both dullard and also callously dullardic.

Some people say they are hellbent on destroying Nigeria. They are hellbent on killing Nigerians, that's for sure. If NPC was working properly, the statistics on the number of deaths this year alone would make a person ask, 'is catastrophic war ongoing in Nigeria?'

🫤

When Tinubu became president last year i predicted a toughest 18months for him at the start. Nigerians have seen "shege" based on the reforms. What most people visualise when they hear reforms is instant noodles, unfortunately it does not work that way, it typically comes with real hard pain enroute success.

Most past presidents cowardly can not try these reforms because they are thinking of 2nd term or mass revolt. Buhari could not truly remove Subsidy for 8 yrs. Tinubu had to wait for 14 months to truly remove all fuel subsidy however if when navigated properly will birth a new nation. The foundation is relayed to promote productivity, discipline and vision . The budget of Nigeria a country of over 200 million can not afford to be same as a Tier B university in USA and we expect massive development

But IMF have since clarified they did not
advise Tinubu.

.

No comment

Kobojunkie:
Oh boy! This administration is dead set on blaming it all on the World Bank, IMF, or even the West. Nigeria is truly in deep shitee but worse the people will still bite down on every single one of the many lies. 😩😩😩😩😩😩

Is Sagay also a part of the administration?

Their senseless supporters would disagree

Lol..

How can you open your mouth on Inauguration Day to say

SUBSIDY IS GONE?

Is it to feel woke or to sound like one serious president or what?

Till now your government and the entire country have not recovered from that grave error

Senses are meant to be used and not for decoration

Hope we heed to these warnings

You're advising Tinuborrow
Chief babiyala of the world not to listen to IMF.

Oga no waste your time on a block head

For the fact that one of the two is good for the country, I think things will be good very very soon .

erad:
✓ Is Sagay also a part of the administration?

Is he not a Nigerian now convinced that the World Bank/IMF is to blame for much of the debacles of this here administration?

Below are examples:

1. Zambia
IMF and World Bank Policies: Implemented SAPs in the 1980s, including currency devaluation, removal of subsidies, and privatization.
Outcome: Economic stagnation, rising poverty, and significant social unrest followed. The reliance on copper exports exacerbated the crisis as global prices fell.

2. Argentina
IMF and World Bank Policies: Adopted neoliberal reforms in the 1990s, including currency pegging, privatization, and austerity.
Outcome: The policies led to a massive economic collapse in 2001–2002, with high unemployment, widespread poverty, and the government defaulting on debt.

3. Greece
IMF and European Central Bank Policies: Imposed austerity measures during the 2010 debt crisis as part of bailout agreements.
Outcome: Severe recession, high unemployment, and public protests. GDP shrank significantly, and the debt burden increased as a percentage of GDP.

4. Jamaica
IMF and World Bank Policies: Adopted SAPs in the 1980s, including devaluation, trade liberalization, and public spending cuts.
Outcome: Economic stagnation, growing debt, and increased inequality. Social services were severely affected, worsening poverty levels.

5. Indonesia
IMF Policies: During the 1997 Asian Financial Crisis, the IMF mandated austerity, removal of subsidies, and liberalization.
Outcome: The policies deepened the economic crisis, causing mass unemployment, inflation, and widespread poverty.

6. Kenya
IMF and World Bank Policies: Adopted SAPs in the 1980s and 1990s, focusing on privatization and reducing public spending.
Outcome: Economic instability, reduced access to healthcare and education, and increased poverty.

7. Ecuador
IMF Policies: Enacted austerity and liberalization in the late 1990s as part of IMF agreements.
Outcome: Banking sector collapsed, unemployment soared, and millions emigrated due to economic hardship.
Similarities to Nigeria:

Policy Elements: Many of these countries, like Nigeria, experienced forced currency devaluation, subsidy removals, and privatization under IMF and World Bank guidance.
Outcomes: Economic instability, increased poverty, and public dissatisfaction often followed.

Lessons:
Structural Challenges: IMF/World Bank policies often fail to account for local economic conditions.
Over-Reliance on Exports: Many countries depended on a narrow range of exports (e.g., oil for Nigeria, copper for Zambia).
Social Impact: Austerity measures disproportionately affect vulnerable populations, reducing access to essential services.

I'm waiting for them to show up , the Tpain crew on Nairaland that has their senses in the anus



Reform for 2 years no single breath of relief


Finally buhari turns out to be a saint

Imagine .

Js

Tinubu is mentally blind.

Can a blind man lead another blind?

No!

Tinubu should simply modify this tax bill to accommodate all.If he forces it in the next northern president will just reverse or kill the bill.

Real OG below

IMF has always used African countries to test the efficacy of their hypothesis.

It cost about 10 trillion to provide the subsidy. The government no longer afford it.

To provide means the government would add to the national debt. Servicing the national debt when Tinubu became president gulped 97% of government revenue. A lot of the debt was accrued arose from the petrol subsidy.

How can an economy survive when 97% of revenue goes towards debt servicing?

TechCapon:
Tinubu will continue to implement their policies because he needs to be collecting their loans... He knows if he doesn't cooperate with them no loans for him and his goons to collect and share

deep Truth