Prominent legal scholar and Senior Advocate of Nigeria, Itse Sagay, has cautioned President Bola Tinubu’s administration against adopting economic policies recommended by the World Bank and International Monetary Fund (IMF). He argues that such policies have historically failed in developing countries, leading to increased hardship.
Sagay criticized the removal of the petrol subsidy, a move influenced by these international institutions, stating it was premature and has caused severe economic difficulties. He noted that the subsidy removal led to a significant devaluation of the naira and soaring costs of essential goods and services, exacerbating the suffering of Nigerians.
He highlighted that the IMF and World Bank often propose harsh policies to developing nations, which typically result in failure and increased misery. Sagay urged the government to reconsider its economic approach and avoid policies that have historically been detrimental to countries in similar situations.
On tax reforms, Sagay expressed support, suggesting that they would encourage states to boost productivity and reduce disparities in tax revenue distribution. He emphasized the importance of states contributing proportionally to the revenue they receive, promoting fairness and self-reliance.
Sagay’s comments come amid ongoing debates about the effectiveness of international financial institutions’ recommendations for Nigeria’s economic policies. He advocates for a more cautious and tailored approach to economic reforms, considering the unique challenges facing the country.
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