IMF and Niger Reach Staff-Level Agreement on the Fourth and Fifth Reviews of the Extended Credit Facility and The First Review under the Resilience and Sustainability Facility

IMF News, June 1, 2024

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Canonical URL: IMF and Niger Reach Staff-Level Agreement on the Fourth and Fifth Reviews of the Extended Credit Facility and The First Review under the Resilience and Sustainability Facility

IMF Staff and Nigerien Authorities reached a staff-level agreement on:
- the fourth and fifth reviews of Niger’s economic program under the Extended Credit Facility (ECF), and
- the first review under the Resilience and Sustainability Facility (RSF).
The staff-level agreement is subject to IMF Management and Executive Board approval.
- Board meeting is expected to take place in July 2024.
Potential disbursements contingent on review completions:
- Completion of the ECF reviews would allow the disbursement of SDR 19.7 million (about US$ 26.1 million, or 15 percent of Niger’s quota) to cover external financing needs.
- Completion of the first review of the RSF would allow for the disbursement of SDR 34.2 million (about US$ 45.3 million, or 26 percent of Niger’s quota).

IMF staff team led by Mr. Antonio David held meetings from May 20 to June 1, 2024.
Press contact: PRESS OFFICER: Tatiana Mossot; Phone: +1 202 623-7100; Email: MEDIA@IMF.org

Growth:
- Growth is estimated to have decelerated to 2.4 percent in 2023, mainly because of the effects of sanctions and a relatively unfavorable agriculture season.
- Real GDP growth is projected at 10.6 percent in 2024 due to the start of oil exports and ensuing spillover effects across the economy, the lifting of sanctions, as well as increased production in the agricultural sector.
Inflationary outlook:
- The start of oil exports, the lifting of sanctions, and increased agricultural production "should also help to contain inflationary pressures in 2024."
Risks:
- The positive outlook is subject to downside risks, in particular those linked to the security situation and vulnerabilities to climate shocks.

Fiscal deficit:
- The fiscal deficit outturn for 2023 was 5.4 percent of GDP, marginally higher than programmed in part due to revenue shortfalls.
- The deficit trajectory is calibrated to adhere to the authorities’ commitment to reach the WAEMU regional convergence criterion of 3 percent GDP by 2025.
Debt service arrears:
- As a result of the sanctions imposed after the military takeover, Niger incurred external and domestic debt service arrears.
- The Nigerien authorities are pursuing efforts to fully clear these overdue obligations.

ECF objectives:
- The arrangement under the Extended Credit Facility aims to reinforce macroeconomic stability and lay the foundations for resilient, inclusive, and private sector-led growth.
Program performance:
- Most quantitative objectives at end-June, end-December 2023, and end-March 2024 were met, despite the difficult context.
- Implementation of some structural benchmarks was delayed, notably the benchmark related to the adoption of the oil revenue management strategy.
Revenue mobilization and fiscal management:
- Measures to enhance domestic revenue mobilization are crucial to increase fiscal space for priority social and security spending.
- Ongoing authorities’ efforts highlighted by the mission:
- simplify the tax system;
- promote the digitalization of revenue administration;
- adopt an oil revenue management strategy aiming at insulating the budget from fluctuations in international oil prices.
- The mission noted ongoing efforts to boost the quality and efficiency of government spending and encouraged continuation to improve public service delivery.

Private sector:
- Authorities recognize private sector development as vital to expedite and sustain the economic recovery and are pursuing efforts to enhance the investment climate.
Anti-corruption and AML/CFT:
- Authorities restructured the anti-corruption institutional framework with the creation of the Commission against Economic, Financial and Fiscal Crimes (CoLDEFF).
- Efforts to improve the institutional framework are ongoing in the Anti Money Laundering and Combating the Financing of Terrorism area.

RSF role:
- RSF financing supports reforms and investments to address rising risks and challenges associated with climate change, thereby building resilience and safeguarding livelihoods.
Progress:
- Nigerien authorities made significant progress in implementing reforms to enhance the management of risks linked to natural disasters (including fiscal risks) and to promote renewable energy sources.

The mission met:
- Prime Minister and Minister of the Economy and Finance, Mr. Ali Mahamane Lamine Zeine;
- Minister of Foreign Affairs, Cooperation, and Nigeriens Abroad, Mr. Bakary Yaou Sangare;
- Dr Soumana Boubacar, Minister Chief of Staff of the President of the National Council for the Safeguard of the Homeland (CNSP).
The mission also held working sessions with:
- Deputy Minister of the Economy and Finance, Mr. Moumouni Boubacar Saidou;
- National Director of the BCEAO, Mr. Maman Laouali Abdou Rafa;
- other senior government officials, private sector representatives, and development partners.
The IMF team thanked the authorities for their cooperation and for the constructive and productive discussions.

Press Release No. 24/193 — IMF Communications Department