The International Monetary Fund (IMF) and Niger have reached a staff-level agreement on the eighth review of the country’s Extended Credit Facility (ECF) arrangement and the fourth review under the Resilience and Sustainability Facility (RSF), paving the way for disbursements totaling approximately US$91 million. Completion of the reviews is subject to approval by the IMF Executive Board, with a decision expected in March 2026.
The agreement comes as Niger’s economy demonstrates strong resilience despite ongoing security challenges and recurring climate shocks. Economic growth is projected at 6.9 percent in 2025 and is expected to remain robust at 6.7 percent in 2026, supported by favorable harvests, mining activity, and targeted public investment. Consumer prices fell by 4.6 percent in 2025 and are expected to rise moderately in 2026, reflecting a controlled inflation environment amid external pressures.
The fiscal deficit for 2025 is expected to stay broadly in line with program targets. For 2026, the deficit may temporarily widen to 3.7 percent of GDP due to additional spending needs arising from climate shocks. Authorities have planned revenue and expenditure measures to maintain fiscal balance, prioritizing concessional financing and extending domestic debt maturities to ease debt service pressures.
The ECF-supported program focuses on strengthening macroeconomic stability and promoting resilient, inclusive, and private sector–led growth. Program implementation has been broadly satisfactory, with Niger meeting most end-June and end-September 2025 targets and making progress in clearing domestic arrears. Key structural reforms include reinstating arbitration and regulatory committees for public procurement, rolling out a Treasury Single Account, and advancing public financial management and anti-corruption measures to boost revenue, improve spending efficiency, and enhance governance.
The RSF arrangement provides targeted support to address climate-related risks and vulnerabilities. Under the review, Niger completed climate vulnerability assessments for major public investment projects and strengthened budget climate tagging to ensure public funds are directed toward resilient infrastructure and development initiatives.
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IMF staff, led by Ms. Izabela Karpowicz, engaged with high-level Nigerien officials, including Prime Minister Ali Mahamane Lamine Zeine and Minister of Economy and Finance Maman Laouali Abdou Rafa, as well as central bank representatives, private sector stakeholders, and development partners. The discussions emphasized continued commitment to structural reforms, fiscal discipline, and resilience-building measures.
“Economic growth is projected to remain strong despite significant exogenous shocks. Authorities are implementing reforms that strengthen governance, improve revenue mobilization, and safeguard public investment,” the IMF staff statement said.
The disbursement under the ECF review would provide SDR 43.8228 million (about US$61 million) to support Niger’s external financing needs, while the RSF review would release SDR 21.714 million (approximately US$30 million) to bolster climate resilience and sustainable development initiatives.
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The agreement underscores Niger’s commitment to maintaining macroeconomic stability, advancing governance reforms, and implementing strategies to strengthen fiscal space while mitigating the impact of climate and security challenges on development outcomes.
Niger, a landlocked country in West Africa, faces significant economic challenges, including recurring climate shocks, food insecurity, and a complex security environment due to armed groups in the Sahel region. Agriculture remains the backbone of the economy, employing the majority of the population, while mining—particularly uranium—drives exports and government revenues.
The International Monetary Fund (IMF) supports Niger through concessional financing arrangements designed for low-income countries. The Extended Credit Facility (ECF) provides medium-term financial support with low-interest loans, long maturities, and grace periods to help stabilize the economy and implement structural reforms. The Resilience and Sustainability Facility (RSF) complements this support by addressing vulnerabilities related to climate change, promoting sustainable investments, and strengthening public financial management.
Under these programs, Niger is expected to implement fiscal consolidation, improve revenue mobilization, advance public sector governance, and pursue reforms aimed at private sector development. Key measures include the adoption of a Treasury Single Account to centralize government funds, improved public procurement oversight, and anti-corruption initiatives to enhance efficiency and accountability.
Economic targets under the IMF-supported programs include maintaining strong growth, controlling inflation, improving the fiscal balance, and safeguarding social spending. The IMF monitors program performance through quantitative performance criteria, structural benchmarks, and prior actions to ensure reforms are effectively implemented.
The partnership with the IMF also emphasizes resilience-building against climate and external shocks, supporting investments in climate-resilient infrastructure, sustainable agriculture, and public services. Niger’s engagement with the IMF is part of broader efforts to strengthen macroeconomic stability, enhance governance, and create conditions for sustainable, inclusive growth.
