## IMF and Niger Reach Staff-Level Agreement on a New Economic Program

_IMF News, November 2, 2021_

## Source details

**Canonical URL:** [IMF and Niger Reach Staff-Level Agreement on a New Economic Program](https://www.imf.org/en/news/articles/2021/11/02/pr21319-niger-imf-and-niger-reach-staff-level-agreement-on-a-new-economic-program)

## Other formats

- [Markdown version](/en/news/articles/2021/11/02/pr21319-niger-imf-and-niger-reach-staff-level-agreement-on-a-new-economic-program/index.md)
- [Structured JSON version](/en/news/articles/2021/11/02/pr21319-niger-imf-and-niger-reach-staff-level-agreement-on-a-new-economic-program/index.json)
- [Bundle manifest](/en/news/articles/2021/11/02/pr21319-niger-imf-and-niger-reach-staff-level-agreement-on-a-new-economic-program/bundle-manifest.json)

## Bibliographic details
- Published: November 2, 2021

---

### Mission and staff-level agreement
- IMF staff team led by Mr. Ari Aisen held virtual meetings from October 25 to November 1, 2021.
- Nigerien authorities and the IMF reached a staff-level agreement on a new arrangement under the Extended Credit Facility (ECF) for 2021-2024.
- The staff-level agreement envisages a new three-year arrangement under the Extended Credit Facility (ECF) with access to SDR 197.4 million (equivalent to about US$ 278.5 million or 150 percent of quota).
- The staff-level agreement is subject to IMF Management and Executive Board approval. The Board meeting is expected in December.
- Press Release No. 21/319; publication date: November 2, 2021. Press officer: Andrew Kanyegirire.

### Economic outlook and projections
- Real GDP growth is expected to rebound to 5.6 in 2021 as the economy recovers from the COVID-19 pandemic.
- Growth is projected to accelerate in 2022 and reach double-digit levels in 2023, boosted by the operationalization of the new oil pipeline to Benin.
- Oil exports are expected to start in 2023.
- The external current account is expected to deteriorate in the short term due to large-scale projects with high content of imported capital and intermediate goods, before improving significantly with oil exports starting in 2023.
- Inflationary pressures are expected to persist in 2021—mainly driven by food price hikes due to COVID-19 related supply chain disruptions—before easing in the outer years.
- The fiscal position is projected to further deteriorate in 2021 in the face of significant security and development-related needs, with consolidation efforts and the advent of oil revenues expected to bring the deficit to the regional target of 3 percent of GDP over the medium term.

### Program objectives and key reform areas
- Aim: buttress macroeconomic stability, enhance governance and transparency, and lay foundations for stronger and more inclusive growth.
- Revenue-side measures:
  - Broaden the non-oil revenue base.
  - Reduce informality by improving tax policy and the business environment.
  - Advance tax administration reforms.
  - Improve management of tax arrears to facilitate cash planning.
  - Rationalize and manage exemptions to make the best use of limited fiscal resources.
  - Support transparent and efficient management of oil revenues to ensure prospective increase in oil exports results in a commensurate increase in tax revenues.
- Spending-side measures:
  - Enhance public financial management to improve efficiency and transparency of spending.
  - Support more rigorous medium-term budgeting.
  - Implement enhanced transparency-related reforms.
  - Improve planning and selection of investment projects.
  - Strengthen liquidity and debt management with the establishment of a Single Treasury Account.
- Governance and social measures:
  - Step up efforts to enhance human capital and governance.
  - Fight corruption and promote transparency and accountability to improve public finance management, provision of public goods, and the business environment.

### Risks, conditions for success, and contextual factors
- Success of the program hinges on steadfast implementation of reforms helping catalyze additional donor financial support.
- Key challenges highlighted:
  - Economic consequences of COVID-19 in terms of foregone growth.
  - Effects of climate change affecting agriculture, the country’s main production sector.
  - Deterioration of the security situation in the Sahel region.
- The health impact of the pandemic has so far been relatively contained, attributed in part to rapid measures taken to control the spread.

### Stakeholder engagement and consultations
- The mission held working sessions with:
  - Minister of Finance, Mr. Ahmat Jidoud.
  - Minister of Planning, Mr. Rabiou Abdou.
  - National Director of the BCEAO, Mr. Maman Laouane Karim.
  - Other senior government officials.
- The staff also met with representatives from the private sector, civil society, Banks’ Association, and development partners.
- The IMF team thanked the authorities for their cooperation and for the constructive and productive discussions.

*IMF Press Release No. 21/319 — November 2, 2021.*

---


## References

- [IMF COVID-19 Hub](https://www.imf.org/en/Topics/imf-and-covid19)
- [Policy Tracker](https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19)
- [Financial Assistance](https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker)
- [Questions & Answers](https://www.imf.org/en/About/FAQ/imf-response-to-covid-19)
- [Niger and the IMF](http://www.imf.org/external/country/NER/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2021/11/02/pr21319-niger-imf-and-niger-reach-staff-level-agreement-on-a-new-economic-program_