IMF Warns Food Prices Could Push More Nigerians Into Poverty Despite 4.2% Growth

The International Monetary Fund (IMF) has warned that rising food prices could push more Nigerians into poverty and worsen food insecurity despite projected economic growth of 4.2 per cent.

The warning was contained in the IMF’s 2026 World Economic Outlook, titled Resilience Under Strain, Urgent Choices, presented on Tuesday on the sidelines of the IMF/World Bank meetings in Bangkok, Thailand.

According to the financial institution, Nigeria’s economic outlook is supported by improved macroeconomic stability and favourable terms-of-trade effects. However, it cautioned that persistently high prices of essential goods could deepen poverty and increase food insecurity.

“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.

The warning comes amid ongoing economic reforms by the Federal Government, which has defended its policies as necessary to address structural weaknesses in the economy.

Among the major measures introduced are reforms to the foreign exchange market and the removal of the petrol subsidy, which the government described as wasteful and vulnerable to corruption.

While international financial institutions have commended the reforms for their potential to improve public finances and economic stability, many Nigerians continue to face mounting living costs.

Higher energy prices, food inflation and other cost-of-living pressures have placed additional strain on households, particularly those with limited incomes.

The IMF’s assessment highlights the challenge of translating macroeconomic improvements into better living conditions for ordinary Nigerians, as rising prices continue to undermine household purchasing power.

Although economic growth can indicate an expansion in overall economic activity, its benefits may not be felt evenly across the population, especially when the cost of essential goods continues to rise.

The report’s warning underscores the need to address food affordability and poverty alongside efforts to maintain economic stability.