IMF Calls for Cash Transfers to Support Nigerians Amid Hardship

The International Monetary Fund (IMF) has recommended that the Federal Government of Nigeria introduce targeted cash transfers and temporary income support for vulnerable households to mitigate the effects of rising living costs. Deniz Igan, Chief of the IMF Research Department’s World Economic Studies Division, presented these recommendations during a briefing on the Fund’s World Economic Outlook at the IMF/World Bank Annual Meetings in Thailand.

Igan emphasized that despite Nigeria's economic growth and its status as an energy exporter, many citizens are still struggling with high living costs. She noted that food and energy prices significantly burden household expenditures.

The proposed cash transfers aim to reduce poverty and improve food security for the most vulnerable Nigerians. However, Igan cautioned that cash transfers alone would not resolve the broader fiscal challenges and urged the establishment of a credible medium-term fiscal framework to enhance public expenditure quality and revenue collection.