The International Monetary Fund (IMF) has cautioned Nigeria’s cost-of-living pressures, intensifying as surging transport expenses drive food inflation, while limited fiscal capacity restricts government intervention.
The Director of the African Department IMF, Abebe Selassie, gave the warning during the African Department media briefing on the Sub-Saharan Africa’s regional economic outlook at the IMF/World Bank Spring Meetings 2026 in Washington on Thursday.
He said the global and regional shocks were compounding vulnerabilities across African economies, with Nigeria particularly affected through escalating logistics and transportation costs impacting supply chains.
Selassie noted that persistent inflationary trends in Nigeria were being driven largely by food prices, which formed a major component of the consumer basket and respond quickly to transport cost increases.
He said that the recent fuel price hikes, was linked to rising global oil prices, it had pushed pump prices sharply higher, transmitting cost pressures across distribution networks and worsening price instability in essential commodities.
