IMF urges Nigeria to expand cash transfers as food, energy costs rise

The International Monetary Fund (IMF) has urged Nigeria to strengthen targeted cash transfers to vulnerable households amid rising food and energy prices.

The Division Chief of IMF Research Department, Deniz Igan, made the call at a press conference on the World Economic Outlook in Bangkok, Thailand, on Tuesday, October 13, 2026.

Igan said the intervention would help reduce poverty and improve food security, adding that there is a need to balance immediate household needs with long-term fiscal stability.

Igan stated that Nigeria’s economic growth had remained resilient, partly because of its status as an energy exporter, despite persistent poverty and declining household purchasing power.

According to her, temporary income support should be accompanied by improved public expenditure and stronger revenue collection.

Igan said these measures would help governments address the rising cost of essential goods without undermining medium-term fiscal stability.

The Director of the IMF Research Department, Silvana Tenreyro, said the global economy’s resilience was approaching its limits.

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Tenreyro urged governments to move beyond short-term crisis management by rebuilding fiscal buffers and strengthening supply chains, particularly in critical sectors such as energy.

She also advised central banks to carefully balance inflation control with economic activity when responding to oil price shocks.

The director added that monetary policy responses should reflect prevailing inflation levels, labour market conditions and the nature of the economic shock.

She also called for stronger fiscal frameworks and resilient supply chains to help economies withstand future global uncertainties.