The International Monetary Fund (IMF) has marked up Nigeria’s growth projection by 10 basis points to 4.2 per cent but insisted poverty remains high despite improving headline macro data.

The IMF said percentage said that despite Nigeria’s robust growth, a larger percentage of the continues to suffer. It urged the government to provide targeted, temporary support to the vulnerable.

It noted the impact of recent disproportionate spike in food and energy prices on the cost-of-living crisis, while charging government to balance the immediate needs of households with medium-term fiscal stability.

The Fund, in the World Economic Outlook released today at the ongoing IMF/World Bank Annual Meetings, put the growth projection at 4.2 per cent and that of next year at 4.3 per cent.

Speaking on fiscal policy responses to rising living costs in Africa, Research Department Division Chief, Deniz Igan, said policymakers needed to address immediate household needs, particularly food and energy security, while maintaining medium-term economic stability.

“The things to emphasise here is that what we are advocating for is for policymakers to balance the near-term needs of population, and that involves food security. That involves energy security. Given that the prices of food and energy is increasing disproportionately, and while also keeping in mind the medium-term stability, and how to do that is, of course, a great question,” she said.

Igan said the IMF had examined fiscal policy responses that could be most effective in addressing what it described as a cost-of-living crisis, where the prices of essential goods rise faster than the rest of the consumption basket.

“And we do actually also in one of our chapters, our chapter two is looking particularly into fiscal pulse responses that’s most effective when dealing with what we call a postcode living crisis, where the price of essentials are increasing faster than the rest of the consumption basket,” she said.

Using Nigeria as an example, she noted that economic growth had remained resilient, but high poverty levels and pressure on households remained a concern.

“What that means in in practice, maybe Nigeria is a good example, right? While the growth held up in Nigeria, given energy exporter, poverty rates are still very high, and we are very mindful that the population is suffering when it comes, especially to security, with also risks from El Niño,” she said.