The International Monetary Fund (IMF) has warned that rising prices of essential goods could worsen poverty and food insecurity in Nigeria, despite signs of improvement in the country’s economic stability.
In its October 2026 World Economic Outlook report, titled Resilience Under Strain, Urgent Choices, released on Tuesday, October 13, the IMF acknowledged that Nigeria had benefited from improved macroeconomic stability and favourable conditions in international trade. However, it cautioned that these improvements had not necessarily translated into better living conditions for millions of Nigerians.
The warning comes at a time when many households continue to face pressure from the cost of food, transportation, electricity and other basic necessities. For families with limited incomes, increases in the prices of everyday goods can make it increasingly difficult to meet basic needs, including providing regular meals, paying school expenses and covering healthcare costs.
According to the IMF, Nigeria’s economic outlook has received some support from recent stabilisation measures and favourable trade conditions. Nevertheless, the organisation stressed that rising prices of essential commodities remain a significant threat to vulnerable households.
The Fund projected that Nigeria’s economy would grow by 4.2 per cent in 2026, up from an estimated 4.0 per cent in 2025. It also expects growth to reach 4.3 per cent in 2027.
Although these projections point towards gradual economic expansion, the figures do not automatically mean that Nigerians will experience immediate relief from the high cost of living. Economic growth can occur without its benefits reaching every household, particularly when food prices remain high and wages do not keep pace with rising expenses.
The IMF also projected that economic growth across sub-Saharan Africa would remain at 4.5 per cent in 2026. However, it warned that countries across the region face different economic pressures, including fluctuating commodity prices, climate-related challenges and limited access to external financing.
For Nigeria, the challenge remains ensuring that economic reforms produce tangible improvements in people’s daily lives. Stronger economic indicators will need to be accompanied by increased employment opportunities, improved household purchasing power, affordable food and better access to essential services.
The latest warning highlights the gap between economic stability and the financial realities facing ordinary citizens. While Nigeria’s economic outlook shows signs of improvement, the IMF’s assessment suggests that reducing poverty and food insecurity will require sustained efforts to ensure that the benefits of economic growth reach the most vulnerable members of society.
