IMF Raises Alarm Over Nigeria’s Cost-Of-Living Crisis, Demands Targeted Cash Transfers For Vulnerable Citizens
IMF Raises Alarm Over Nigeria’s Cost-Of-Living Crisis, Demands Targeted Cash Transfers For Vulnerable Citizens The IMF said targeted support would help reduce poverty and strengthen food security, particularly as households continue to face elevated prices for essential goods.
The International Monetary Fund (IMF) has expressed serious concerns over Nigeria’s escalating cost-of-living crisis, advocating for the implementation of targeted cash transfers to alleviate poverty and enhance food security for vulnerable citizens. This warning was included in the October 2026 World Economic Outlook (WEO) report, unveiled during the IMF and World Bank Group’s Annual Meetings in Bangkok, Thailand.
The IMF emphasized that cash transfers and temporary income support could significantly alleviate the financial burdens faced by households grappling with the sharp increase in essential goods prices and sustained inflation.
The IMF advocated for a balanced approach to monetary policy, stressing the importance of managing inflation while allowing the Central Bank of Nigeria (CBN) to sustain economic growth. The fund recommended that Nigeria adopt a medium-term fiscal framework prioritizing government expenditure quality and revenue collection. IMF Economic Counsellor Silvana Tenreyro forecasted Nigeria’s economy to expand by 4.3% in 2027, outpacing several advanced economies such as the United Kingdom, Canada, and Germany.
However, she acknowledged that the nation’s reliance on energy exports has bolstered economic activity but has not prevented widespread economic distress.
Despite the IMF’s optimistic projections for Nigeria’s economic growth, the organization underscored that the rising cost of living continues to exert considerable pressure on the populace. Nigeria’s status as an energy exporter has assisted in maintaining economic momentum but has not mitigated the impact of elevated prices on essential commodities. The fund highlighted the urgency of addressing these pressures without disproportionately affecting vulnerable households.
Furthermore, the IMF projected global economic growth at 3% in 2026, urging African governments to bolster protective measures for vulnerable populations against economic shocks. The report attributed part of the global growth to the swift expansion of investments in artificial intelligence (AI), particularly in data centres and related infrastructure.
The IMF expects global growth to rebound to 3.4% in 2027, contingent on the full reopening of the Strait of Hormuz by March of the following year. Asia is forecasted to account for 59% of global economic growth in 2026, with India and Indonesia cited as key contributors to expansion.
However, the IMF cautioned that the global economy faces emerging financial risks, including a potential downturn in AI-related investments and increasing fragmentation of international trade. It also noted a tripling of global hedge fund assets since 2013, reaching approximately $13 trillion, which signals growing risks within the global financial system.
The IMF’s 2026 Annual Meetings in Bangkok, marking the event’s return to Thailand after a 35-year absence, brought together over 10,000 delegates to discuss global economic challenges and policy responses.
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