Niger has, once again, failed to meet its debt obligations, with the West African nation defaulting on a payment of 13.4 billion CFA francs ($22 million) last week, as announced by the West African debt management agency, UMOA-Titres.
This missed payment adds to Niger’s growing financial troubles, escalating the total defaulted amount to approximately $519 million since the country experienced a military coup in July, which led to its suspension from regional financial markets.
According to UMOA-Titres, the missed payment on Friday, February 16th is part of a series of defaults by Niger, following previous failures to meet its financial obligations in August, November, January, and February.
These defaults come amid sanctions from the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA), which have been closely monitoring the situation in collaboration with relevant institutions.
“This situation is carefully monitored by UMOA-Titres in collaboration with the institutions concerned,” stated the debt management agency.
The sanctions were a response to the July 30th coup, led by members of the Nigerien presidential guard, which resulted in the ousting of President Mohamed Bazoum.
This political upheaval prompted international aid suspensions from countries like the United States, which had been supporting Niger in areas such as health, security, and infrastructure.
Before the coup, nearly half of Niger’s annual budget relied on this aid.
After the coup, neighboring countries of Niger also sealed their borders. The nation experienced a cessation of over 70% of its electricity supply, primarily sourced from Nigeria, and a halt was placed on financial transactions with West African nations.
Niger’s assets were also seized in foreign banks, and hundreds of millions of dollars in aid were withheld.
Last year, a planned bond issuance by Niger intended to raise 30 billion CFA francs ($51 million) was canceled by the Central Bank of West African States (BCEAO), further straining the country’s finances.
Despite the harsh sanctions intended to deter further coups in the Sahel region, the measures have seemingly failed to impact the new government’s resolve, which has only tightened its grip on power. Meanwhile, the citizens of Niger are facing increasing hardships.
Last month, Niger, alongside Mali and Burkina Faso, declared their exit from ECOWAS.
The trio, now part of the newly formed Association of Sahel States (ASS), announced in September, and are contemplating abandoning the CFA franc, the common currency of the UEMOA.
