The International Monetary Fund (IMF) has upwardly revised Nigeria’s 2026 economic growth forecast to 4.2%, citing improved macroeconomic stability and favorable terms of trade. Despite this positive outlook, the IMF acknowledged the significant hardship faced by Nigerians due to rising food and energy costs. The fund recommends that the federal government implement temporary, targeted cash transfers for vulnerable households to mitigate the impact of inflation without undermining long-term fiscal stability. This forecast aligns with a recent World Bank upgrade, though both institutions remain cautious regarding the domestic cost-of-living crisis.