News Investigators/ The International Monetary Fund (IMF) has urged Nigeria to strengthen targeted cash transfers to vulnerable households amid rising food and energy prices.
The Division Chief, Research Department IMF, Deniz Igan, made the call during a News Conference on the World Economic Outlook in Bangkok, Thailand on Tuesday.
Ms Igan said that the intervention would help reduce poverty and improve food security, adding that there is a need to balance immediate household needs with long-term fiscal stability.
She said that Nigeria’s economic growth had remained resilient, partly because of its status as an energy exporter, despite persistent poverty and declining household purchasing power.
According to her, temporary income support should be accompanied by improved public expenditure and stronger revenue collection.
Ms Igan said that these measures would help governments address the rising cost of essential goods without undermining medium-term fiscal stability.
The Director of the IMF Research Department, Silvana Tenreyro, said that the global economy’s resilience was approaching its limits.
Ms Tenreyro urged governments to move beyond short-term crisis management by rebuilding fiscal buffers and strengthening supply chains, particularly in critical sectors such as energy.
She also advised central banks to carefully balance inflation control with economic activity when responding to oil price shocks.
The director said that monetary policy responses should reflect prevailing inflation levels, labour market conditions and the nature of the economic shock.
She also called for stronger fiscal frameworks and resilient supply chains to help economies withstand future global uncertainties.
NAN
