The International Monetary Fund has urged the Nigerian government to deploy temporary, targeted direct cash support for vulnerable households. The recommendation came at the Annual Meetings in Bangkok. The IMF said the measure would relieve persistent inflation without expanding fiscal deficits.
Nigeria’s inflation rate eased to 15.39% in August 2026. Food inflation remains higher at 19.57%. The cost of living crisis has pushed millions into poverty. The World Bank estimates 63% of Nigerians live below the poverty line. The government has introduced several palliatives. These include wage awards, CNG buses and a 30-day petrol discount. Critics say the measures are inadequate. The IMF prefers direct cash transfers. They reach the poor faster. They are easier to target.
The IMF said Nigeria’s fiscal space is limited. It said universal subsidies are inefficient. It recommended targeted transfers. The transfers would be temporary. They would cushion the impact of reforms. If properly designed, they would not expand the deficit. The government has a social register. It covers millions of households. The register has been criticised for errors. The IMF said improving targeting is essential.
The recommendation aligns with the government’s cash transfer programme. The programme has reached millions. But coverage is incomplete. The amounts are small. The IMF said scaling up would help. The government has not responded.
Winners: Vulnerable households, if transfers reach them. The IMF, which shows concern. The government, if it adopts the advice. Losers: Critics who prefer subsidies. Those excluded from the social register. Taxpayers, if the programme is mismanaged. The government, if inflation persists.
Bottom Line: The IMF wants cash transfers. They are targeted. They are temporary. They do not expand the deficit. The government has a register. It needs to improve it. The poor need help now. The advice is sound. Delivery is the test.