The International Monetary Fund (IMF) has warned that the rising cost of essential goods and services in Nigeria could push millions more people into poverty, despite recent improvements in the country’s macroeconomic outlook. The Fund cautioned that persistent inflation and high living costs continue to erode household incomes and worsen food insecurity across the country.
According to the IMF, although Nigeria’s economy is projected to grow by 4.1% in 2026 and 4.3% in 2027, the benefits of economic growth may not reach ordinary citizens unless inflation is effectively controlled and the prices of essential commodities become more affordable. The Fund noted that rising prices remain one of the biggest threats to household welfare.
The IMF also revised its global economic growth forecast for 2026 to 3.0%, citing geopolitical tensions and global economic uncertainties. However, it observed that advances in artificial intelligence and stronger technology-driven demand have helped offset some of the negative impact on the global economy.
The warning comes as many Nigerian households continue to struggle with the rising cost of food, transportation, healthcare, education, electricity, and other basic necessities. Economists have repeatedly stressed that sustained economic growth must be accompanied by lower inflation, stronger social protection, and policies that improve living standards for the majority of citizens.
The IMF’s latest assessment has renewed debate over the effectiveness of ongoing economic reforms and the need for targeted measures to protect vulnerable Nigerians from the worsening cost-of-living crisis.
