The International Monetary Fund (International Monetary Fund) has raised fresh concerns over Nigeria’s near-term economic outlook, warning that citizens may face even tougher living conditions as inflationary pressures, rising transportation costs, and persistent global shocks continue to strain household incomes across the country.
The warning comes at a time when Nigeria is experiencing a rare surge in crude oil prices, offering potential revenue relief for the government. However, the Fund cautioned that the benefits of higher oil earnings may be offset by rising debt levels, structural weaknesses in public finances, and ongoing global uncertainties.
Speaking during the Economic Outlook for Sub-Saharan Africa at the ongoing World Bank–IMF Spring Meetings 2026 in Washington D.C., Director of the IMF’s African Department, Abebe Selassie, said the impact of global geopolitical tensions is already being felt across African economies, including Nigeria.
He noted that rising transport and food costs were driving significant economic pressure on households.
“The immediate effect will be quite a bit of pressure, including on food security… transportation costs have gone up, it’s going to raise the cost of food and so quite a bit of dislocation,” Selassie said.
According to him, higher transportation expenses are already feeding into inflation, especially in urban centres where costs are rising sharply, while rural communities are also feeling the impact due to supply chain constraints.
We’re already seeing quite a lot of increase in transportation prices… Transportation costs are very high for people in urban areas, rural areas even more so,” he added, stressing that the situation is already placing visible strain on livelihoods.