Nigeria, Oct. 10 -- The International Monetary Fund (IMF) said targeted, temporary income support is the most effective and cost-efficient way for governments to protect vulnerable households during cost-of-living crises.

IMF disclosed this in its latest World Economic Outlook, noting that broad-based subsidies can impose higher costs on public finances.

The IMF report examined the economic consequences of cost-of-living crises and the effectiveness of government interventions across 76 countries over three decades.

The financial institution said consumer subsidies could require three to six times more fiscal resources than targeted cash transfers to provide the same level of protection to lower-income households. In contrast, producer...