Niger is set to unlock $91 million in fresh financing from the International Monetary Fund (IMF) after clearing key reform and fiscal targets, providing much-needed support as the government confronts widening spending needs.
The funding package follows a staff-level agreement between IMF officials and Nigerien authorities on the eighth review of the country’s Extended Credit Facility (ECF) programme and the fourth review under the Resilience and Sustainability Facility (RSF), according to a statement issued Wednesday. Final approval by the IMF’s executive board is expected in March 2026.
Once approved, the decision will release $61 million under the ECF to help plug Niger’s external financing gap, alongside $30 million from the RSF, which supports investments aimed at strengthening climate resilience and protecting critical infrastructure.
The IMF programme forms part of broader efforts to stabilise Niger’s public finances, improve budget transparency and lay the groundwork for more durable, private sector-led growth.
Reforms under the arrangement include strengthening revenue mobilisation, improving public financial management, and easing domestic debt obligations — measures designed to restore fiscal discipline and improve investor confidence.
“Program performance has been broadly satisfactory against end-June and end-September 2025 targets, and the authorities have continued efforts to clear domestic arrears,” said Izabela Karpowicz, who led the IMF review mission.
Climate shocks strain finances
Despite reform progress, Niger’s fiscal position remains under pressure as climate-related disruptions and development needs drive higher government spending.
The IMF expects the fiscal deficit to widen temporarily to 3.7% of GDP in 2026, reflecting increased outlays to address climate vulnerabilities and support economic resilience, although planned tax reforms and improved revenue collection should help contain medium-term imbalances.
Authorities have also committed to prioritising concessional borrowing and extending domestic debt maturities to reduce refinancing risks and create room for essential spending on infrastructure and social programmes.
Beyond fiscal consolidation, the RSF component of the programme is intended to help the West African nation better manage climate risks, including strengthening investment planning, and improving resilience to droughts and other environmental shocks that frequently disrupt agricultural output and economic activity.
Strong growth outlook supports reform momentum
The IMF said Niger’s economic outlook remains broadly favourable despite ongoing security challenges and external uncertainties.
“Economic growth is projected to remain robust at 6.9 percent in 2025 and 6.7 percent in 2026, despite significant exogenous shocks,” Karpowicz said.
Stronger agricultural output, supported by favourable harvests, helped ease inflationary pressures last year, while reforms aimed at improving fiscal governance and strengthening the financial system are expected to reinforce macroeconomic stability.
The IMF programme is expected to play a central role in helping Niger maintain economic stability while addressing structural weaknesses in public finances, positioning the country to better withstand external shocks and sustain growth over the medium term.
