IMF warns of rising poverty risks in Nigeria amid stability

The International Monetary Fund (IMF) has issued a warning regarding the persistent risks of poverty in Nigeria, despite the country's economic stability. In its October 2026 World Economic Outlook report titled “Resilience Under Strain, Urgent Choices,” the IMF highlighted that rising prices for essential goods could exacerbate poverty and food insecurity.

The report indicates that while Nigeria has benefited from improved macroeconomic stability and favorable external trade conditions, these improvements have not translated into better living conditions for vulnerable households. The IMF projected Nigeria's economy to grow by 4.2 percent in 2026, an increase from an estimated 4.0 percent in 2025.

This forecast represents an upward revision of 0.1 percentage point from previous projections. The report also noted that Nigeria's favorable terms-of-trade position supports economic activity, but the rising cost of essential commodities continues to pressure households.

Additionally, the report identified challenges such as declining official development assistance and limited participation in the global artificial intelligence investment boom.