NewsNiger defaults on debt payments again as post-coup woes pile

Members of a military council that staged a coup in Niger attend a rally at a stadium in Niamey

Niger defaulted on a debt payment of 13.4 billion CFA francs ($22m) last week, according to the West African debt management agency. This brings the total default to around $519m since a July coup led to the country's suspension from regional financial markets.

The West African monetary union debt management agency UMOA-Titres stated that Niger failed to repay principal due on February 16, adding to previous missed payments in August, November, January, and February.

The default occurred amidst sanctions imposed by the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (UEMOA) following the July 30 coup, which ousted President Mohamed Bazoum.

In response to the coup, aid from countries like the United States, which supported health, security, and infrastructure needs, was suspended. Before the coup, aid constituted nearly half of Niger’s annual budget. Additionally, neighboring countries closed their borders, cutting off over 70 percent of Niger’s electricity supplied by Nigeria. Financial transactions with West African nations were halted, and Niger's external bank assets were frozen, with hundreds of millions in aid withheld.

A planned 30 billion CFA franc ($51m) bond issuance by Niger in July was canceled by the Central Bank of West African States (BCEAO).

Despite the stringent sanctions imposed by the regional bloc to deter coups in the Sahel, the government has maintained its grip on power while the populace faces increasing hardships.

Last month, Niger, alongside Mali and Burkina Faso, announced their departure from ECOWAS, forming the Association of Sahel States (ASS) in September. Reports suggest they are contemplating discontinuing the use of the CFA, the currency of UEMOA.