The International Monetary Fund (IMF) Executive Board approved an immediate disbursement of $70 million to Niger as part of ongoing aid programs for the Sahelian nation, nearly a year after the coup that ousted President Mohamed Bazoum.
This IMF decision eases financial pressures on Niger, which has been under military rule since the coup on July 26, 2023. The $70 million package aims to bolster Niger’s macroeconomic stability and fund its ecological transition.
These objectives are integral to several IMF aid programs initiated in 2021. However, the 2023 coup altered the economic landscape: debts accumulated, and international sanctions against the military weakened the economy. In 2023, Niger’s growth barely exceeded 2%.
In recent months, the situation in Niger has shown signs of improvement. In February, the Economic Community of West African States (ECOWAS) lifted many of its sanctions, and the World Bank resumed funding for certain projects. Additionally, the robust health of the petroleum sector indicates a strong economic rebound for Niger this year.
The IMF forecasts contained inflation and double-digit growth, potentially surpassing 10% in 2024.
“The Nigerien economy has been significantly impacted by political instability and the sanctions following the military takeover in July 2023. Nonetheless, short- and medium-term prospects have improved, with the lifting of sanctions, oil exports, and improved agricultural production,” emphasized IMF Deputy Managing Director Antoinette Sayeh, as quoted in the official statement.
This financial assistance from the IMF represents a crucial step in supporting Niger’s economic recovery and stabilization efforts in the aftermath of political upheaval.