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Itse Sagay, a renowned legal scholar and Senior Advocate of Nigeria, has raised concerns over the economic recommendations put forth by the World Bank and the International Monetary Fund, urging President Bola Tinubu’s administration to reconsider implementing these policies.
According to Sagay, such measures risk deepening the suffering of ordinary Nigerians, adding to the already overwhelming economic challenges they face. His warning underscores the growing tension between international economic advice and the harsh realities of Nigeria’s socio-economic ecosystem.
In a recent interview with the media, Itse Sagay, a prominent legal figure and Senior Advocate of Nigeria, lambasted the government’s move to remove the petrol subsidy, a decision reportedly influenced by the Bretton Woods Institutions. Sagay called the timing of the policy shift disastrous, warning that it could spell further economic hardship for the Nigerian people. His criticism adds to the mounting skepticism surrounding the effectiveness of international financial recommendations in addressing Nigeria’s pressing economic issues.
Highlighting a historical pattern, Sagay remarked that the economic prescriptions from institutions like the IMF and World Bank have repeatedly faltered in developing countries, deepening their economic crises rather than alleviating them. He stressed that Nigeria must carefully consider the lessons of the past before embracing such advice.
“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.”
Sagay drew attention to the mounting hardships faced by Nigerians, pointing to the staggering rise in transportation costs. For instance, the price of a trip from Lagos to Delta State has surged from N5,000 to N65,000. He called for a complete reversal of these policies, which he believes are driving the average Nigerian further into distress.
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.
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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.
