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The International Monetary Fund (IMF) has urged Nigeria to strengthen cash transfers and targeted, temporary income support for vulnerable households as high living costs continue to pressure families.
The recommendation came as the IMF released its October 2026 World Economic Outlook (WEO) during the IMF-World Bank Annual Meetings in Bangkok, Thailand. The Fund said targeted support could help reduce poverty and improve food security, particularly as Nigerians continue to face elevated prices for essential goods.
The IMF also called on the Central Bank of Nigeria (CBN) to ensure inflation returns to its policy target over the medium term while carefully balancing the impact of monetary tightening on economic activity.
According to the Fund, Nigeria should complement monetary policy with a credible medium-term fiscal framework focused on improving the quality of public spending and strengthening government revenue collection.
The IMF acknowledged that Nigeria’s economy has remained relatively resilient, supported partly by its position as an energy exporter, but warned that high prices for essential goods continue to weigh heavily on households.
At the launch of the outlook, IMF Economic Counsellor Silvana Tenreyro projected that Nigeria’s economy could grow by 4.3 per cent in 2027, a rate stronger than forecasts for several advanced economies. IMF data also places Nigeria’s 2027 real GDP growth projection at 4.3 per cent.
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The Fund’s latest outlook comes amid renewed global inflationary pressures and heightened uncertainty surrounding energy markets. The October 2026 WEO places particular emphasis on cost-of-living pressures, fiscal policy and the use of targeted transfers to cushion households from economic shocks.
Globally, the IMF expects economic activity to remain under pressure from geopolitical tensions, elevated energy prices, financial vulnerabilities and trade fragmentation. At the same time, strong investment in artificial intelligence and related infrastructure is supporting parts of the global economy.
The IMF has stressed that governments, particularly in developing economies, should protect vulnerable households without relying on broad and costly subsidies. For Nigeria, that means directing temporary financial assistance towards those most affected by inflation while pursuing policies aimed at achieving sustainable growth, stronger public finances and price stability.
