IMF Raises Nigeria's Growth Forecast but Warns of Rising Prices

The International Monetary Fund (IMF) has increased Nigeria’s economic growth forecast for 2026 to 4.2 percent. But it also warned that rising prices for basic goods will worsen poverty and food insecurity.

These projections are in the IMF’s 2026 World Economic Outlook report titled "Resilience Under Strain, Urgent Choices." The report was shared during the IMF/World Bank meetings in Bangkok, Thailand.

The IMF noted that the new forecasts show Nigeria's macroeconomic stability. Still, it cautioned that soaring prices are likely to push more Nigerians into poverty.

The Nigerian government has launched several reforms aimed at fixing the economy's structure. But many citizens are feeling the effects amid the ongoing cost-of-living crisis.

The government made changes in the foreign exchange market and ended a subsidy system it called wasteful and corrupt due to financial pressures.

While many global financial institutions see these reforms as good for Nigeria’s fiscal health, many Nigerians are frustrated. They are dealing with higher energy prices, a rising cost of living, and other inflation issues.

“The IMF said, “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 also predicted Nigeria’s growth for 2027 would be 4.3 percent.