The International Monetary Fund, IMF, says food prices will push more Nigerians into poverty regardless of 4.2% growth.
The IMF made this projection in its 2026 World Economic Outlook titled “Resilience Under Strain, Urgent Choices,” presented on the sidelines of the IMF/World Bank meetings holding in Bangkok, Thailand.
According to the financial institution, the projections are a reflection of the nation’s macroeconomic stability, even as it warned that sky-high prices are expected to push more Nigerians into poverty.
Nigeria has rolled out a number of reforms which the government says are aimed at fixing the structural problems in the economy, even though the effect has been heavy on many Nigerians struggling with the cost-of-living crisis.
The government carried out reforms in the foreign exchange market and also scrapped what it described as a wasteful and corruption-ridden subsidy regime, at a time of fiscal pressure.
While global development and financial institutions have commended the reforms as good for the country’s fiscal health, many Nigerians have decried the impact at home, citing rising energy prices, high cost of living and other inflationary pressures.
“Nigeria is supported by improved macroeconomic stability and favourable terms-of-trade effects, though higher prices for essentials are expected to further aggravate poverty and food insecurity,” the IMF said in its report Tuesday.
Food prices will push more Nigerians into poverty despite 4.2% growth – IMF