Prominent legal scholar and Senior Advocate of Nigeria, Professor Itse Sagay, has expressed strong concerns over the economic policies recommended by the World Bank and International Monetary Fund (IMF), advising President Bola Tinubu’s administration to tread carefully. In an interview with The PUNCH, Sagay criticized the removal of the petrol subsidy, a decision heavily influenced by the two Bretton Woods institutions, arguing that such policies have historically worsened economic conditions in developing countries.
Sagay highlighted the severe consequences of the subsidy removal, including the depreciation of the naira and skyrocketing prices of goods and services, particularly transportation costs. He pointed to the rise in travel expenses, citing the dramatic increase in fare prices, like the Lagos-to-Delta route, which saw a jump from N5,000 to N65,000.
He warned that the IMF and World Bank often push harsh, counterproductive economic measures that exacerbate hardship in developing nations. According to Sagay, these institutions’ policies have failed in the past, and Nigeria should reconsider adhering to such recommendations. He also called for a reversal of these policies, urging that Nigeria should not rush into implementing measures before becoming self-sufficient in critical sectors, such as petroleum production.
On tax reforms, Sagay expressed support, especially for policies that encourage productivity and address inequities in revenue distribution between states. He noted that states like Lagos bear the brunt of infrastructural responsibilities without receiving proportional revenue.
Sagay’s warning comes at a crucial time when the economic direction of Nigeria is under scrutiny, and many fear the long-term consequences of following the advice of foreign institutions.