By: Odeh Favour
The International Monetary Fund has warned that rising food prices will drive more Nigerians into poverty, notwithstanding a projected economic growth rate of 4.2 percent.
The IMF made the 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 global financial institution, the growth projections reflect the nation’s macroeconomic stability, even as it cautioned that sky-high prices of essential commodities are expected to push more citizens into hardship.
“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 on Tuesday.
In recent times, Nigeria has rolled out a series of economic reforms which the Federal Government says are aimed at fixing structural problems in the economy, even though the immediate impact has been heavy on citizens struggling with an escalating cost-of-living crisis.
As part of the structural adjustments, the government implemented reforms in the foreign exchange market and scrapped what it described as a wasteful and corruption-ridden fuel subsidy regime during a period of intense fiscal pressure.
While global development and international financial institutions have commended the policy shifts as good for the country’s long-term fiscal health, many Nigerians continue to decry the severe impact at home, pointing to surging energy costs, high cost of living, and persistent inflationary pressures.
