Niger: 2024 Article IV Consultation, Sixth Review Under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of Performance Criterion, Modification of Performance Criteria, Second Review Under the Resilience and Sustainabil

This paper presents Niger’s 2024 Article IV consultation, the Sixth Review under the Extended Credit Facility Arrangement, Requests for a Waiver of Nonobservance of Performance Criterion, Modification of Performance Criteria, Second Review under the Resilience and Sustainability Facility Arrangement, and Financing Assurances Review. A robust recovery is expected, with gross domestic product growth estimated at 8.8 percent in 2024, on the back of oil production. For 2025, economic growth should remain strong at 7.9 percent driven by oil exports at full capacity and the expected normalization of supply chains and cross-border trade activities with Benin. Risks of external and overall debt distress in Niger are rated high, although debt remains sustainable over the medium term. Risks to the outlook are skewed to the downside. The implementation of policies to use efficiently the country’s natural resources, expand fiscal space through domestic revenue mobilization and increased spending efficiency, manage fiscal risks and reduce vulnerabilities to shocks, is essential to sustainably address development needs. Moreover, it is critical to strengthen the private sector’s contribution to growth, including by stepping up efforts to enhance the stability and soundness of the financial sector and address debt service arrears.