Itse Sagay, a well-known Nigerian legal expert, has raised concerns about the economic policies recommended by the World Bank and the International Monetary Fund (IMF). He believes that these policies, often followed by developing countries like Nigeria, have historically worsened economic conditions rather than improving them.
In an interview with The PUNCH, Sagay criticized the Nigerian government’s decision to remove the petrol subsidy, a move that was influenced by advice from the IMF and World Bank. According to Sagay, this decision came at the wrong time and has caused severe economic difficulties for Nigerians, including skyrocketing living costs and a significant drop in the value of the naira.
Sagay pointed out that he had previously opposed the removal of the petrol subsidy, especially since Nigeria has not yet achieved self-sufficiency in producing its own petrol. He argued that the removal has resulted in high transportation costs, with a trip from Lagos to Delta State now costing N65,000 instead of N5,000. This, he believes, is just one example of the negative impact these policies have had on the lives of ordinary Nigerians.
Sagay also criticized the IMF and World Bank for recommending what he described as harsh and ineffective policies that have failed to benefit developing nations in the past. He emphasized that no country that adopted these policies has succeeded economically, and many had to abandon them due to worsening conditions.
While Sagay is critical of the IMF and World Bank’s economic advice, he does support reforms within Nigeria. Specifically, he is in favor of tax reforms that would encourage states to be more productive and ensure a fairer distribution of tax revenue. Sagay believes that states like Lagos, which bear the cost of providing infrastructure for large populations, should receive more equitable financial support from the federal government.
In conclusion, Sagay urged the Nigerian government to reconsider its economic policies and focus on reforms that promote fairness, self-reliance, and productivity. He believes that these changes could help Nigeria avoid the economic hardships caused by following external advice from the IMF and World Bank.
