The IMF has warned that rising transport costs are deepening Nigeria’s cost-of-living crisis, driving food inflation higher and increasing pressure on already stretched households.
WASHINGTON, D.C. – The International Monetary Fund has warned that rising transport costs are intensifying Nigeria’s cost-of-living crisis, with higher logistics expenses pushing food inflation upward and worsening pressure on households.
The caution was issued by Abebe Selassie during the African Department media briefing on the Sub-Saharan Africa Regional Economic Outlook at the IMF/World Bank Spring Meetings 2026 in Washington.
Selassie said Nigeria remains particularly vulnerable to global and regional shocks, with escalating transportation expenses disrupting supply chains and increasing the prices of essential goods.
According to him, inflationary pressures in Nigeria are being driven largely by food prices, which form a major part of household spending and react quickly to increases in transport costs.
He noted that recent fuel price hikes, linked partly to higher global oil prices, have sharply increased pump prices, transmitting fresh cost pressures across distribution networks.
The IMF official said transport costs are rising rapidly in both urban and rural areas, placing additional strain on families through higher commuting expenses, food prices, and general living costs.
He added that food systems are also being disrupted as expensive logistics, rising fertiliser costs, and supply bottlenecks combine to raise production and distribution expenses nationwide.
Despite the challenges, Selassie acknowledged that ongoing fiscal and debt reforms in Nigeria are beginning to improve resilience and create limited buffers against external shocks.
He said efforts to stabilise public finances are helping cushion the social and economic effects of global disruptions, especially on vulnerable populations.
However, he warned that policymakers must balance short-term relief measures with long-term fiscal discipline.
“Responses must remain measured so that immediate interventions do not undermine medium-term sustainability and broader reform objectives,” he said.
On debt management, Selassie said the priority should be maintaining sustainable debt levels relative to repayment capacity, rather than focusing solely on domestic or foreign borrowing options.
He stressed that balanced maturities and prudent borrowing decisions remain essential for macroeconomic stability and investor confidence.
Also speaking, Amadou Sy said progress under the African Continental Free Trade Area has been uneven despite its strong long-term potential.
He cited unresolved issues such as rules of origin and tariff negotiations as barriers limiting trade’s role in diversification and economic shock absorption.
Sy added that faster trade reforms, stronger customs systems, and wider access to trade finance would be key to unlocking the full benefits of continental integration.
The IMF warning comes as many Nigerians continue to grapple with elevated transport fares, food prices, and broader inflationary pressures.
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