- Niger Wins US$33 Million IMF Disbursement as Fiscal Consolidation Advances
The International Monetary Fund has approved an immediate US$33.00 million disbursement to Niger after completing the ninth review of the country’s Extended Credit Facility programme, citing resilient economic growth, continued fiscal consolidation and progress on structural reforms.
The payment, equivalent to SDR24.08 million, raises total disbursements under the arrangement to about SDR252.15 million, or US$342.00 million.
Niger’s 60-month ECF programme was approved in December 2021 and subsequently extended to December 2026 to give the authorities additional time to implement outstanding reforms.
The IMF said programme performance had remained broadly strong. All periodic quantitative performance criteria were met at the end of December 2025, while all continuous performance criteria had been observed since the previous review.
Most indicative targets were also achieved, and the authorities made notable progress on reforms intended to strengthen public finances, governance and financial-sector stability.
Economic growth was estimated at 6.90% in 2025 and is projected to accelerate slightly to 7.00% in 2026, supported by agriculture and extractive industries.
The outlook reflects the growing contribution of oil production and exports, alongside continued activity in farming and mining.
However, the Fund warned that the balance of risks remained tilted to the downside.
Security threats, commodity-price volatility, limited access to regional and international financing, declining donor support and the continued closure of the border with Benin could weaken growth and disrupt government revenue.
Higher oil income is expected to provide some protection against those pressures.
The IMF said the additional revenue should be used to reduce the fiscal deficit, rebuild buffers and finance urgent social and food-security needs rather than support an uncontrolled expansion in recurrent expenditure.
Niger’s overall fiscal deficit, including grants, is projected at 3.40% of gross domestic product in 2026, improving from 2.90% in 2025 but remaining above the medium-term target of 3.00%.
Total revenue is forecast to rise to 11.20% of GDP in 2026 from 10.60% a year earlier, while expenditure and net lending are projected at 16.10%.
Capital expenditure is expected to increase to 6.90% of GDP, reflecting the government’s need to support infrastructure and development spending despite limited fiscal space.
The IMF said sustained domestic revenue mobilisation would be essential to creating room for investment and social programmes.
While oil receipts will support the budget, the Fund cautioned against excessive dependence on extractive revenues because commodity prices and production can be volatile.
Debt management remains another major priority.
Niger’s total public and publicly guaranteed debt is projected at 45.90% of GDP in 2026, broadly unchanged from 45.50% in 2025.
The ratio is expected to decline gradually to 43.20% by 2031, supported by fiscal consolidation and stronger growth.
The authorities have committed to clearing all external payment arrears by the end of 2026 and strengthening treasury and debt-management systems to reduce the risk of new arrears.
The Fund said prudent borrowing policies would be necessary to protect debt sustainability, particularly as regional and international financing conditions remain tight.
Financial-sector weaknesses also require urgent attention.
The IMF called for a comprehensive diagnostic assessment of Niger’s banking system, followed by a clear reform roadmap.
Strengthening bank balance sheets, easing liquidity pressures and accelerating the restructuring of the microfinance sector could help expand credit to businesses and households.
Private-sector credit contracted by 2.00% in 2025 but is projected to grow by 6.90% in 2026 and 8.80% in 2027.
The recovery in lending will depend on whether banks can address impaired assets, improve liquidity and rebuild confidence.
Governance and anti-corruption reforms remain central to the programme.
The IMF urged the government to complete reforms to the asset-declaration framework, publish the Governance Diagnostic Assessment once finalised and adopt a time-bound plan for implementing its recommendations.
The Fund said stronger governance would improve public trust, promote transparent use of state resources and help preserve international financial support.
Niger’s external position is also expected to improve gradually.
The current-account deficit, including grants, is projected at 3.00% of GDP in 2026, compared with 3.70% in 2025, before remaining close to 3.00% over the medium term.
The ninth review therefore gives Niger additional financing and an important policy endorsement at a difficult time.
Its growth outlook remains strong, but sustaining the recovery will require careful use of oil revenues, continued fiscal discipline, stronger governance and measures to contain security and financial-sector risks.
