The International Monetary Fund and Niger have reached a staff-level agreement on the ninth review of the country's economic program under the Extended Credit Facility, unlocking access to approximately US$33 million in financing.
The agreement, reached following a mission to Niamey from June 2 to 12, is subject to approval by the IMF Executive Board, with a board meeting expected in late July 2026. If approved, the disbursement would help meet Niger's external financing needs and support continued reform implementation, the IMF said.
Niger's economy grew at an estimated 6.9 percent in 2025, driven mainly by agriculture and the extractive sector, according to the IMF. Growth is projected to remain strong at 7 percent in 2026. Medium-term growth is forecast to average around 6.1 percent, though the outlook faces downside risks including heightened security concerns, regional conflicts, and climate shocks.
Inflation, which averaged -4.7 percent in 2025 — reflecting a period of deflation — has recently begun to rise. The IMF projects inflation will average -1.9 percent in 2026. The war in the Middle East is affecting Niger primarily through higher oil prices, which carry a net positive effect for the oil-producing country, though higher transportation and import costs are weighing on vulnerable households.
Niger's fiscal deficit stood at 2.9 percent of GDP in 2025, below the West African Economic and Monetary Union's convergence criterion of 3 percent. The IMF attributed the performance to domestic revenue mobilization efforts and higher proceeds from crude oil exports. For 2026, the deficit is projected to widen to 3.4 percent of GDP to accommodate reconstruction spending following natural disasters and to support households affected by commodity price shocks.
The authorities plan to use part of the expected oil windfall to build fiscal buffers while maintaining prudent borrowing policies and prioritizing concessional financing and grants, according to the IMF. Program performance against end-December 2025 and end-March 2026 targets was satisfactory, with progress made in strengthening cash flow management, clearing arrears, and increasing transparency around oil contracts signed between the state and oil companies.
Niger's ECF-supported program aims to strengthen macroeconomic stability and create conditions for resilient, private sector-led growth. The authorities remain committed to structural reforms supporting revenue mobilization, governance, and transparency, as well as efforts to strengthen the banking sector and improve its capacity to support small and medium-sized enterprises, with support from the World Bank.
Niger is one of several Sahel countries navigating economic challenges amid security instability and climate pressures. The IMF has maintained active programs across the region, with recent reviews also completed for Guinea-Bissau and discussions underway with Mozambique, reflecting the Fund's continued engagement with West and Southern African economies facing external shocks from the Middle East conflict and global commodity price volatility.
Sources: imf.org
