The International Monetary Fund (IMF) has called on the Nigerian government to provide cash transfers and targeted, temporary income support to the country’s most vulnerable households amid persistently high living costs.

The recommendation was contained in the Fund’s October 2026 World Economic Outlook (WEO), released during the ongoing Annual Meetings of the IMF and World Bank Group in Bangkok, Thailand.

According to the report, cash transfers would help reduce poverty and improve food security despite elevated inflation.

The Fund also urged the Central Bank of Nigeria (CBN) to ensure that inflation returns to its policy target within an appropriate timeframe.

“Inflation is high, but economic activity is being constrained or reduced by the shock. This is where the central bank needs to manage the trade-off. It must ensure that inflation returns to target within the policy horizon, which we typically consider to be two to three years.

“This should be accompanied by a credible medium-term fiscal framework. That framework should focus on improving the quality of public expenditure and strengthening revenue collection,” the Fund said.

Speaking at the report’s launch, the Fund’s Economic Counsellor, Silvana Tenreyro, projected that Nigeria’s economy would grow by 4.3 per cent in 2027, outpacing advanced economies such as the United Kingdom, Canada, and Germany.

The IMF acknowledged that although Nigeria’s economy had remained resilient as an energy exporter, the cost of living remained very high.

“These are essential items, and their prices have risen significantly. The question is how to address these pressures while ensuring that the burden does not fall disproportionately on vulnerable households,” the Fund said.

The IMF projected global economic growth of 3 per cent in 2026 and called on African governments to protect vulnerable households from the effects of rising prices.

According to the Fund, a major energy supply shock linked to the conflict in the Strait of Hormuz had pushed oil prices up by 32 per cent this year, driving global inflation to 4.7 per cent and reversing two years of progress in reducing inflation.

The Fund, however, said substantial investment in artificial intelligence (AI), including the construction of data centres, was helping to sustain global economic growth.

It projected that global growth would rebound to 3.4 per cent in 2027 if the Strait of Hormuz fully reopened by March next year.

The report also projected that Asia would account for 59 per cent of global growth in 2026, led by India and Indonesia.

However, the IMF warned of emerging financial risks, noting that global hedge fund assets had tripled to $13 trillion since 2013. It also highlighted the risks of a correction in AI-related investment and increasing fragmentation in global trade.

The 2026 Annual Meetings in Bangkok marked the return of the gathering to Thailand for the first time in 35 years, with more than 10,000 delegates in attendance.