Niger failed to meet a debt payment of 13.4 billion CFA francs ($22 million) last week, according to a West African debt management agency. This marks a significant escalation in the country’s total default, now amounting to approximately $519 million since the July 2023 coup and subsequent suspension from regional financial markets.
UMOA-Titres, reported on Monday, February 19 that Niger did not fulfill a repayment of principal due on February 16, 2024.
This non-payment occurs within the broader context of Niger facing sanctions imposed by both the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA).
These sanctions were instituted following the coup on July 26, 2023, orchestrated by members of the Nigerien presidential guard, resulting in the overthrow of President Mohamed Bazoum.
The fallout extended beyond regional sanctions, with countries such as the United States suspending aid for health, security, and infrastructure projects—formerly constituting nearly half of Niger’s annual budget.
In addition to the aid suspension, Niger faced further challenges as its neighboring countries closed their borders, and it lost over 70 percent of its electricity supply, which came from Nigeria.
Financial transactions with other West African nations were also halted. Furthermore, Niger’s assets in external banks were frozen, and significant amounts of aid were withheld as a consequence of the political instability stemming from the coup.
In July of last year, Niger’s planned issuance of a 30 billion CFA franc ($51 million) bond was abruptly canceled by the Central Bank of West African States (BCEAO).
These sanctions represented the most severe measures yet imposed by the regional bloc in efforts to quell the surge of coups in the Sahel region.
However, despite these sanctions, the government’s determination remains steadfast, solidifying its grip on power even as millions of Nigeriens grapple with increasing hardships.
Just last month, Niger, alongside neighboring Mali and Burkina Faso, made the unexpected announcement of its immediate withdrawal from the Economic Community of West African States (ECOWAS).
These three nations had previously formed the Association of Sahel States (ASS) in September 2023 and are reportedly contemplating abandoning the use of the CFA, the currency of the West African Economic and Monetary Union (UEMOA).
Negotiations between the Alliance of Sahel States (ASS) and mediators from the regional organization appeared to have reached an impasse.
By the end of January 2024, tensions escalated between the military juntas, led by Malian Assimi Goïta, Burkinabè Ibrahim Traoré, and Nigerien Abdourahamane Tiani, and the civilian regimes of West African countries when the military-led nations initially announced their departure from ECOWAS.
Following the declaration of withdrawal from ECOWAS by certain member countries, the presidents of the organization have directed their foreign ministers to thoroughly examine the issue during an emergency session held on February 8, 2024, in Abuja.
ECOWAS To Lift Sanctions On Niger
According to insider reports, ECOWAS heads of state have taken an initial step, purportedly preparing to lift sanctions imposed on Niger, the only remaining nation under such measures.
The formal announcement of this decision is anticipated to occur before the commencement of Ramadan on March 10, 2024.
A minister familiar with the situation stated, “There are still two or three recalcitrant countries that need to be reassured, but there should be no blockages.”
The minister expressed hope that the gesture would be perceived as a gesture of goodwill and might prevent their exit from ECOWAS.
“The sanctions were not imposed with the aim of lasting. They were supposed to make it possible to quickly stem the wave of coups d’état and in Niger, to restore President Mohamed Bazoum to his functions. However, it did not work, and as political leaders, it is therefore our duty to question this decision,” said another West African minister.
On Thursday, February 15, 2024, Ivorian President Alassane Ouattara hosted a meeting in Abidjan with Togolese President Faure Gnassingbé, who was on a working visit to Côte d’Ivoire.
During the meeting, the two leaders extensively discussed the socio-political and security landscape within the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union.
After thorough deliberations, both leaders agreed on the necessity to reassess strategies for managing and resolving these crises, emphasizing the paramount importance of dialogue and consultation.
Gnassingbé, acting as the ECOWAS mediator for Niger, commended the quality of discussions with Ouattara and advocated for continued bilateral engagement and reflection, independent of formal summits or conferences. The objective remains to identify solutions that facilitate a return to peace, security, and stability throughout the region.
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