IMF Warns Rising Prices May Worsen Nigeria's Poverty

The International Monetary Fund (IMF) has issued a warning that rising prices of essential goods could deepen poverty and worsen food insecurity in Nigeria, despite improvements in the country's macroeconomic stability. According to the IMF's July 2026 World Economic Outlook update, Nigeria's economy is projected to grow by 4.1% in 2026 and 4.3% in 2027.

However, the report cautions that higher prices for basic necessities could offset gains from ongoing economic reforms. The report highlights that while Nigeria benefits from improved macroeconomic conditions and stronger terms of trade, households remain vulnerable to rising living costs.

The IMF also projects that inflationary pressures will intensify due to higher energy prices, with headline inflation expected to increase to 4.1% in 2025 and 4.7% in 2026. The IMF advises the Nigerian government to avoid broad-based fuel subsidies and instead implement targeted support for vulnerable households to maintain price stability.