The non-payment of due dates by Niger on the regional WAEMU market has led to a series of significant economic consequences for the country. Since the July 2023 coup, Niger has struggled to meet its financial obligations, accumulating a total amount of more than €478 million in arrears. This situation has considerably restricted the Nigerien authorities’ room for maneuver.
With limited resources, declining revenues and frozen accounts, Niger is facing an imbalance between its revenues and expenditures. To alleviate this situation, the authorities must delay repayments and respect obligations to creditors. These payment delays have already affected eight deadlines this year, further complicating the country’s economic situation.
Sanctions imposed following the coup also impacted Niger’s rating, which was repeatedly downgraded by rating agencies such as Moody’s. These payment defaults risk compromising the solvency of the Nigerien banking sector, especially if sanctions persist. However, the regional impact of these incidents remains limited, given the relatively balanced distribution of debts.
At the same time, the Nigerien economy is suffering from sanctions through the suspension of international aid and accounts managed by the BCEAO, as well as indirect consequences on cross-border trade. The private sector is under pressure, risking some businesses closing, and entrepreneurship is seriously affected, particularly in the construction sector.
In this difficult context, Niger is implementing strategies to circumvent sanctions, such as measures to collect taxes in cash to maintain its revenues. Despite these challenges, the Nigerien economy has shown some resilience thanks to the continuation of mining and agricultural activities. The diversification of sources of income, particularly future oil revenues, offers hope for overcoming these financial difficulties.
In conclusion, the economic challenges that Niger faces following these non-payments underline the urgency for the country to find lasting solutions to ensure its financial stability and long-term economic growth.