Niger has defaulted on a debt payment of 13.4 billion CFA francs ($22 million), as reported by the West African debt management agency, UMOA-Titres, this Monday. This missed payment, due on February 16, adds to a growing total of approximately $519 million in defaults since the country experienced a coup in July, leading to its suspension from regional financial markets.
The failure to repay this principal amount marks a continuation of Niger’s financial struggles, following missed payments in August, November, January, and February. UMOA-Titres highlighted that these defaults have occurred amidst sanctions from both the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA), which were imposed in response to the July 30 coup carried out by members of the Nigerien presidential guard that led to the ousting of President Mohamed Bazoum.
Sanctions have had a significant impact on Niger, a country where foreign aid previously constituted nearly half of its annual budget. Following the coup, international support from various countries, including the United States, for health, security, and infrastructure was suspended. Additionally, Niger faced the closure of borders by neighboring countries, a significant reduction in electricity supply from Nigeria, suspension of financial transactions with West African nations, freezing of its assets in external banks, and withholding of hundreds of millions of dollars in aid.
The consequences of the coup extended to the financial sector, with the Central Bank of West African States (BCEAO) canceling a planned bond issuance by Niger worth 30 billion CFA francs ($51 million) in July. The sanctions imposed by ECOWAS are among the most severe attempts by the regional bloc to deter further coups in the Sahel region, although they have seemingly had little impact on the new government’s consolidation of power, leaving millions in Niger to face increasing hardship.
In a significant move last month, Niger announced its departure from ECOWAS, alongside Mali and Burkina Faso, with immediate effect. The three states have since formed the Association of Sahel States (ASS) in September and are contemplating the abandonment of the CFA franc, the currency used by UEMOA member countries, signaling a profound shift in the region’s political and economic landscape.
