IMF Executive Board Concludes the Third Review of Niger’s Extended Credit Facility Arrangement and Approves US$ 131.5 Million under the Resilience and Sustainability Facility Arrangement
IMF News, July 5, 2023
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- Published: July 5, 2023
Third Review under the Extended Credit Facility (ECF) — outcomes and disbursements
- The Executive Board completed the Third Review of Niger’s program supported by the Extended Credit Facility arrangement (ECF).
- Completion of the review enables the disbursement of SDR 19.74 million (about US$ 26.3 million).
- Total disbursements under the ECF are now SDR 138.18 million (about US$ 184.1 million).
- Niger’s three-year ECF was for SDR 197.4 million (about US$ 275.8 million at the time of the ECF approval or 150 percent of quota) and was approved on December 8, 2021.
- The ECF was extended by six months until June 7, 2025, to ensure sufficient time to implement key reforms and support the authorities’ fiscal consolidation efforts.
Resilience and Sustainability Facility (RSF) — approval and purpose
- The Executive Board approved an arrangement for Niger under the Resilience and Sustainability Facility (RSF) for SDR 98.7 million (about US$131.5 million or 75 percent of quota).
- The RSF will support the authorities’ agenda to build resilience to climate change and help leverage additional financing for climate-related investments.
- The RSF’s duration will coincide with the period remaining under the ECF, as extended.
- The RSF for Niger is identified as the fourth in Sub-Saharan Africa.
Assessment of Niger’s program, risks, and IMF recommendations
- The Nigerien authorities have made good progress in implementing their economic reform program despite a challenging security situation and climate shocks.
- The outlook is described as favorable, supported by the start of crude oil exports through the new pipeline to the Beninese coast; however, downside risks remain.
- Fiscal policy and public finances:
- The authorities’ fiscal consolidation plan aims to ensure a gradual return to the WAEMU convergence criteria by 2025.
- Steadfast implementation of measures to improve domestic revenue mobilization, supported by digitalization efforts, is essential to create fiscal space for priority social and development spending.
- Reforms to improve the efficiency and quality of public spending are important.
- Tighter financing conditions require a prudent debt policy and continued efforts to prioritize concessional loans.
- Important steps are being taken to adopt a well-designed oil revenue management strategy that guarantees transparent and prudent management of these resources.
- Private sector, financial stability, and governance:
- Authorities should accelerate efforts to lift the most binding constraints to private sector development and economic diversification.
- Promoting financial stability and inclusion is critical; recommended measures include strengthening supervision in the banking and microfinance sectors, enhancing the AML/CFT framework, and addressing elevated NPLs.
- Tangible progress on the governance agenda is key to address sources of fragility and improve the business environment.
- Climate and macro-fiscal integration under the RSF:
- The RSF program will support the incorporation of climate-related considerations into Niger's macroeconomic policy framework.
- Expected reforms under the RSF:
- Strengthen the planning and budgeting of climate-related spending.
- Integrate climate-related issues into public investment management.
- Enhance disaster-informed fiscal planning and management.
- Promote the use of renewable energy.
Key economic indicators and selected statistics (Table 1: Niger: Selected Economic Indicators, 2020-24)
- Annual percentage change — National income and prices
- GDP at constant prices: 2020: 3.5; 2021: 1.4; 2022: 11.9; 2023: 7.0; 2024: 13.0
- CPI, annual average: 2020: 2.9; 2021: 3.8; 2022: 4.2; 2023: 2.7; 2024: 2.5
- CPI, end-of-period: 2020: 3.1; 2021: 4.9
- Export volume: 2020: -0.7; 2021: -8.3; 2022: -12.0; 2023: 34.8; 2024: 110.2
- Import volume: 2020: 2.8; 2021: 1.2; 2022: -2.1; 2023: 11.2; 2024: 12.1
- Annual percentage change — Government finances and credit
- Total revenue: 2020: 0.5; 2021: 5.2; 2022: 8.4; 2023: 21.7; 2024: 39.1
- Total expenditure and net lending: 2020: 13.4; 2021: 3.4; 2022: 18.8
- Current expenditure: 2020: 12.4; 2021: 9.1; 2022: 8.5; 2023: 8.6; 2024: 17.9
- Capital expenditure: 2020: 5.3; 2021: 12.9; 2022: -3.7; 2023: 31.6; 2024: —
- Domestic credit: 2020: 25.0; 2021: 9.2; 2022: 17.1; 2023: 23.5; 2024: 14.3
- Credit to the government (net): 2020: 565.5; 2021: -24.6; 2022: 54.7; 2023: 122.0; 2024: 27.0
- Credit to the economy: 2020: 15.4; 2021: 12.6; 2022: 7.1; 2023: 9.9
- Broad money: 2020: 16.9; 2021: 9.7; 2022: 15.2; 2023: 16.4
- Percent of GDP (selected)
- Total revenue: 2020: 10.8; 2021: 10.1; 2022: 13.5; 2023: 22.4; 2024: 24.3
- Total expenditure and net lending: 2020: 21.6; 2021: 21.9; 2022: 22.6
- Current expenditure: 2020: 10.3; 2021: 10.7; 2022: 10.0; 2023: 13.1; 2024: 11.0
- Overall balance (incl. grants): 2020: -4.8; 2021: -5.9; 2022: -6.8; 2023: -5.3; 2024: -4.1
- Gross fixed capital formation: 2020: 31.1; 2021: 31.7; 2022: 31.5; 2023: 31.2
- Non-government investment: 2020: 20.5; 2021: 20.6; 2022: 22.1
- Government investment: 2020: 10.5; 2021: 11.1; 2022: 9.4
- External current account balance excluding official grants: 2020: -15.6; 2021: -16.4; 2022: -16.9; 2023: -14.2; 2024: -6.7
- External current account balance (incl. grants): 2020: -13.2; 2021: -14.1; 2022: -12.2; 2023: -5.2
- Total public and publicly-guaranteed debt: 2020: 45.0; 2021: 51.3; 2022: 50.3; 2023: 48.3
- Public and publicly-guaranteed external debt: 2020: 33.5; 2021: 32.7; 2022: 32.6; 2023: 30.9
- PV of external debt: 2020: 24.5; 2021: 22.7; 2022: 21.1; 2023: 19.4
- Public domestic debt: 2020: 17.8; 2021: 17.7; 2022: 18.7; 2023: 17.4
- Billions of CFA francs — GDP at current market prices
- 2020: 7,911; 2021: 8,271; 2022: 9,615; 2023: 10,535; 2024: 12,143
Press Release No. 23/256; July 5, 2023; IMF Communications Department.