The World Bank and the International Monetary Fund have canvassed decisive measures to further reduce inflation to translate recent economic gains into tangible improvements in household welfare.
The global lenders acknowledged that macroeconomic gains are being recorded on the strength of reforms but maintained that the inflation rate remains high.
The World Bank’s Senior Economist for Nigeria, Dr Samer Matta, and Nigeria’s International Monetary Fund Country Representative, Dr Christian Ebeke, spoke in Lagos while serving as panelists at the Nigerian Economic Summit Group 2026 Macroeconomic Outlook presentation.
The summit report was themed, Consolidating economic stabilisation gains, pathway to sustainable growth in Nigeria.
On Tuesday, the World Bank raised its projection for Nigeria’s economic growth rate for 2026 to 4.4 percent from 3.7 percent forecast in June 2025. It also upgraded the 2027 growth projection to 4.4 percent from 3.8 percent.
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Speaking at the event, Ebeke warned that Nigeria risks becoming complacent and assuming the job has been completed. He cautioned against hydrogenic volatility, describing it as self-inflicted policy mistakes capable of destabilising the economy.
Ebeke urged the Federal Government and subnational authorities to improve the quality of public spending so that macroeconomic stability can translate into better living conditions for households.
He said Nigeria has adopted flexible exchange rates, opened its financial accounts and allowed prices to adjust freely, stressing that returning to heavy government intervention is no longer sustainable.
He warned that inflation remains high and the reform process unfinished, identifying complacency, particularly at subnational levels ahead of elections, as a major risk to recent gains.
Matta said he was concerned about projections that inflation would drop to single digits only by 2029, noting that prolonged double-digit inflation undermines household welfare.
While acknowledging progress, he stressed that inflation remains a major challenge and warned against celebrating too early. He added that monetary policy has largely been exhausted.
Matta also emphasised the need for effective government spending, particularly at subnational levels where revenues and fiscal surpluses have increased, urging greater investment in social protection, education and health services to improve overall well-being.
DAILYTRUST
