Biting Cost of Living: IMF Urges Targeted Cash Transfers for Nigeria’s Poor
The International Monetary Fund (IMF) has called for cash transfers and targeted, temporary income support for the most vulnerable households in Nigeria to cushion the country’s biting cost of living pressure.
The call was made as the Fund released its October 2026 World Economic Outlook (WEO) at the ongoing Annual Meetings of the IMF and World Bank Group in Bangkok.
According to the report, the IMF noted that the fund transfer will help reduce poverty and improve food security despite a high inflation rate. It called on the Central Bank of Nigeria (CBN) to ensure inflation returns to the country’s policy-targeted point.
“Inflation is high, but economic activity is being constrained or reduced by the shock. This is where the central bank needs to manage the trade-off. It must ensure that inflation returns to target within the policy horizon, which we typically consider to be two to three years.
“This should be accompanied by a credible medium-term fiscal framework. That framework should focus on improving the quality of public expenditure and strengthening revenue collection,” the Fund said.
Speaking at the launch, the Economic Counselor at the Fund, Silvana Tenreyro, projected Nigeria’s growth as 4.3 per cent by 2027, outpacing advanced economies like the United Kingdom, Canada and Germany.
The IMF acknowledged that although growth has held up as an energy exporter, living costs remain very high.
“These are essential items, and their prices have risen significantly. The question is how to address these pressures while ensuring that the burden does not fall disproportionately on vulnerable households,” it noted.
The Fund projected global economic growth at 3 per cent in 2026, with a call for African governments to protect vulnerable households.
According to the Fund, a major energy supply shock linked to the conflict in the Strait of Hormuz has pushed oil prices up by 32 per cent this year, driving global inflation up to 4.7 per cent and reversing two years of progress on disinflation.
The IMF, however, said massive investment in Artificial Intelligence, including construction of data centres, is helping keep global growth afloat.
The IMF said growth is expected to rebound to 3.4 per cent in 2027, if the Strait of Hormuz reopens fully by March next year. The report noted that Asia will account for 59 per cent of global growth in 2026, led by India and Indonesia.
The Fund, however, warned of new financial risks, with global hedge fund assets tripling to $13 trillion since 2013, and risks of an AI investment correction and trade fragmentation.
The 2026 Annual Meetings in Bangkok marked the return of the summit to Thailand for the first time in 35 years, with over 10,000 delegates in attendance. IMF Hikes 2026 Global Economic Growth Estimate to 3.1%
