Sagay Warns Tinubu Against Taking Advice From World Bank, IMF
A senior Lawyer, Prof. Itse Sagay, has warned President Bola Tinubu against implementing economic policies recommended by the World Bank and International Monetary Fund (IMF), because their policies instigates hardship for Nigerians.
Sagay who stated this in an interview with The PUNCH, condemned 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.
The Scholar further 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.”
Prof Sagay who 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, also called for a reversal of these policies.
He said 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.
According to Prof Sagay, “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.”
Sagay who also spoke on the tax reform bills, gave his support, and argued that the reforms would push states to increase productivity and reduce the inequities in tax revenue distribution.
He insisted 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, who is a former Presidential Advisory Committee against Corruption urged the government to reconsider its economic approach and also supported reforms that will incentivise productivity and fairness.
