Niger Misses $22 Million Payments on its Domestic Debt

Niger is facing payment difficulties on its domestic debt due to sanctions imposed following last year’s coup.

The Nigerien authorities missed a 13.4 billion CFA franc ($22 million) principal payment on a one-year bond that matured on February 16.

Interest payments on two seven-year notes due in 2027 and 2030 were also not made.

These missed payments have accumulated to a total of $604 million in arrears since soldiers ousted President Mohamed Bazoum in July.

The situation is because of the sanctions which have been imposed on the West African nations following the coup.

The growing number of missed payments poses a threat to the financial stability of West African banks.

Also Read: Mali, Niger and Burkina Faso quit ECOWAS 

Moody’s Investors Service estimates that Niger-based lenders held approximately $543 million of Nigerien sovereign debt, constituting about 14% of their assets, as of November.

The ratings company evaluates banks operating in Niger, including Ecobank Transnational Inc., Oragroup SA, Attijariwafa Bank, Groupe Banque Centrale Populaire, and Bank of Africa.

The Economic Community of West African States (ECOWAS), a regional economic bloc, suspended all commercial and financial transactions between member states and Niger shortly after the coup, effectively restricting transfers to creditors outside the country.

Niger, along with neighboring Mali and Burkina Faso, both also under military rule, announced their exit from ECOWAS last month.

The three nations’ governments recently agreed to form a union of states known as the Alliance of Sahel States.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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