The International Monetary Fund (IMF) has warned that rising prices of essential goods will push more Nigerians into poverty and worsen food insecurity, even as it maintained a positive outlook for the country’s economic growth over the next two years.
In its July 2026 World Economic Outlook (WEO) Update, the IMF retained Nigeria’s growth forecast at 4.1 per cent for 2026 and 4.3 per cent for 2027, citing improved macroeconomic stability and favourable terms of trade.
According to Globalfinancial Digest, the Fund cautioned that persistently high prices for food and other necessities remain a major threat to household welfare.
The IMF also downgraded its global growth outlook, projecting the world economy to expand by 3.0 per cent in 2026 and 3.4 per cent in 2027, below the average 3.5 per cent recorded in 2024 and 2025.
It attributed the slowdown to the economic impact of the Middle East conflict, although stronger demand driven by advances in artificial intelligence is expected to provide some support.
Commenting on Nigeria and the broader Sub-Saharan African region, the IMF said economic performance across the continent would remain uneven, reflecting differences in policy implementation, fiscal capacity and exposure to external shocks.
According to the report, Sub-Saharan Africa is projected to record 4.3 per cent growth in 2026, rising to 4.5 per cent in 2027.
The Fund noted that while some of the region’s larger economies are benefiting from earlier economic reforms and improved macroeconomic stability, many countries remain excluded from the productivity gains associated with the global artificial intelligence boom and are also facing declining official development assistance.
“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
