IMF Calls for Cash Transfers to Support Nigerian Households

The International Monetary Fund (IMF) has recommended that the Nigerian government provide targeted and temporary cash transfers to vulnerable households to mitigate the effects of rising food and energy prices and address ongoing poverty. Deniz Igan, Chief of the World Economic Studies Division in the IMF’s Research Department, made this recommendation during the World Economic Outlook presentation at the IMF and World Bank Group Annual Meetings in Bangkok, Thailand.

Igan noted that while Nigeria's economic growth has shown resilience due to its status as an energy exporter, high poverty levels remain a significant challenge. She emphasized the need for policymakers to balance immediate inflation concerns with maintaining medium-term economic stability.

Igan explained that the rising prices of essential commodities disproportionately affect low-income households, making targeted government support essential. Temporary income support through cash transfers could help these households meet basic needs, alleviate poverty, and strengthen food security.

The recommendation comes amid ongoing concerns regarding the cost of living and its impact on household purchasing power.