IMF Urges Nigeria to Provide Cash Support Amid Rising Costs

The International Monetary Fund (IMF) has acknowledged the suffering of Nigerians due to the rising cost of living, urging the Nigerian government to implement targeted cash transfers and temporary income support for vulnerable households. Deniz Igan, Chief of the IMF Research Department’s World Economic Studies Division, made this recommendation during a press briefing at the IMF and World Bank Annual Meetings in Bangkok, Thailand.

Igan emphasized the need for immediate support alongside policies that ensure long-term financial stability. The IMF noted that despite Nigeria being a major oil producer, higher international oil prices do not lead to lower living costs for citizens, as increased energy prices raise transportation and production costs.

The IMF projected Nigeria's economic growth to expand by 4.2% in 2026 and 4.3% in 2027 but warned that rising prices for essential goods could worsen poverty and food insecurity. Igan stressed that government assistance must be paired with a credible medium-term fiscal plan to improve revenue collection and effective public spending.