IMF meetings: Edun seeks global backing as inflation risks mount

NIGERIA’S Minister of Finance, Mr Wale Edun, is intensifying calls for international support as the country grapples with the mixed effects of rising oil prices and accelerating inflation linked to the Middle East crisis.

In a statement released ahead of the 2026 Spring Meetings of the International Monetary Fund and World Bank in Washington DC, the Finance Ministry outlined three key policy priorities guiding Nigeria’s engagement. These centre on maintaining macroeconomic stability while advancing growth and protecting vulnerable populations, Nairametrics reported.

Edun noted that although elevated crude oil prices could boost foreign exchange (FX) inflows and government revenues, the overall economic impact remains uneven. Higher fuel costs and inflation continue to strain households and businesses across the country.

At the core of Nigeria’s message is a push for stronger global cooperation as it navigates external shocks alongside ongoing domestic reforms. Leading the country’s delegation, Edun said Nigeria would advocate for cheaper access to capital, fairer financial conditions globally, and increased support for developing economies facing similar pressures.

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He stressed that such measures are essential to easing fiscal pressures, attracting investment, and ensuring reforms deliver real improvements in living standards. Inflation driven by geopolitical tensions, he added, remains a significant threat to household incomes and poverty reduction efforts.

Nigeria is also seeking sustained support from multilateral institutions and private investors as it confronts current economic headwinds. During the meetings, Edun is expected to engage global financial leaders and development partners, positioning Nigeria within broader discussions on economic resilience and development financing.

The government acknowledged that while higher oil prices could strengthen fiscal revenues and external balances, the downside is already evident domestically. Energy costs have surged, with petrol prices rising by over 50 percent from around N890–N900 per litre to between N1,260 and N1,330, while diesel has climbed more than 70 percent to roughly N1,550 at peak levels.

Beyond fuel, the crisis is weighing on capital flows and financial markets as investors shift towards safer assets, reducing inflows into emerging markets like Nigeria. Disruptions to global shipping routes are also expected to raise freight costs, pushing up import prices and intensifying inflationary pressures.

Despite these challenges, the government maintains that Nigeria is in a stronger position to absorb external shocks following reforms introduced since 2023. These include the removal of fuel subsidies, exchange rate liberalisation, diversified financing strategies, and institutional strengthening efforts.

Edun said while Nigeria remains exposed to global volatility, these reforms have improved the country’s capacity to manage disruptions. The next phase of policy will prioritise a shift from stabilisation to growth, with a focus on boosting private investment, deepening domestic capital markets, and driving job creation.

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The government also plans to tap opportunities under the African Continental Free Trade Area (AfCFTA), to expand trade and investment across the region.

Meanwhile, ahead of the meetings, IMF Managing Director, Ms Kristalina Georgieva, signalled a possible downgrade to global growth forecasts, citing disruptions from escalating tensions between the US and Iran. She warned that the global economy is facing uneven shocks and that prices are unlikely to return to pre-conflict levels anytime soon.