Niger, a landlocked country in West Africa, is facing complex economic challenges due to its heavy reliance on the livestock sector and agricultural activities.
In recent times, the country has encountered economic difficulties, including those brought about by the coup in 2023, leading to the imposition of sanctions and a slowdown in economic growth.
This report provides a comprehensive overview of Niger’s economy, analyzing key sectors, natural resources, challenges, and future expectations.
Gross Domestic Product of Niger
Niger is one of the poorest countries globally, facing challenges such as minimal government services, inadequate funds allocated for development, and recurrent climate shocks.
According to World Bank data, Niger’s Gross Domestic Product (GDP) was around $15.34 billion in 2022. Niger ranks 133rd in the global GDP ranking out of 196 countries.
Per capita GDP in the country was $608 in 2022, which is $17 higher than in 2021. Niger ranks 186th globally in terms of per capita GDP, reflecting the population’s position among the poorest in the world.
The government is striving to diversify the economy by increasing oil production and mining projects. However, challenges remain, such as a population growth rate of 3.6%, decreased global demand for uranium produced in the country, the impact of climate shocks on pastoralists, a vulnerable population group.
Major Resources in Niger
Livestock Wealth
Livestock is the cornerstone of Niger’s economy, generating approximately 14% of the GDP annually and supporting 29% of the population.
Despite its significance, this sector faces challenges such as drought, pests, and diseases, leading to significant losses during environmental stresses. Over 87% of the population is engaged in livestock rearing activities.
According to the Ministry of Agriculture and Livestock in the country, the total number of livestock species (excluding poultry) was estimated at around 50.5 million heads in 2019, valued at over 4 trillion West African Francs (FCFA), equivalent to approximately $7 billion.
Agricultural Wealth
Agriculture, representing the lifeline for about 80% of Niger’s 17.8 million people, produces 4.5 million tons of crops annually.
Millet, sorghum, rice, onions, beans, peanuts, sweet potatoes, and cotton are among the main crops.
Millet, a staple food, covers 80% of the agricultural area, while onions are a profitable cash crop in the country.
Natural Resources in Niger
Uranium
Niger is the world’s fourth-largest uranium producer, contributing over 70% of its exports. French companies dominate its extraction, with the Imouraren mine holding significant reserves.
Niger’s uranium production was approximately 4,821 tons in 2012 and 2,020 tons in 2022, equivalent to 5% of global production.
Uranium contributes to less than 10% of the GDP, according to international economic reports, ranking second in Niger’s exports after gold.
Uranium was discovered in Niger in the late 1950s in the Azelik area. Subsequently, more uranium was discovered in Madaouela, Imouraren, and Tassa.
Official sources in Niger indicate that the Imouraren mine, the largest mine, contains over 100 million tons of the mineral.
French companies have maintained a monopoly on uranium mining in Niger, with Areva holding the license, alongside companies such as Somair and Cominak, according to a Reuters report. In addition to French companies, there are Canadian, African, and Chinese companies operating in the sector.
Some of the most famous mining sites include:
- Arlit, located in the northwest of the country, with numerous open-pit mining sites near the city.
- Akouta Mine, located southwest of Arlit, near Akokan, produced 75,000 metric tons of uranium from 1978 until March 2021, when it closed after depleting its reserves of ore.
- Imouraren Mine: Located approximately 50 miles south of Arlit on one of the world’s largest reserves, according to Areva. The mine’s operating permit was granted in 2009, but mining operations were suspended in 2014 until uranium prices improve.
Gold
Gold deposits exist in the southwestern region of Niger and recently in the northern region of Agadez. Commercial gold mining in the country began in 2004 at the Samira Hill Gold Mine operated by the Liptako Mining company, a joint venture between the government and two Canadian companies.
The discovery of commercially viable gold deposits in Agadez in 2014 enhanced Niger’s potential as one of the major gold producers in Africa.
The Samira Hill Mine is one of the most important gold mines in Niger, opened in 2004 and located in the Tera region within the Tillaberi area.
In 2014, new gold deposits were discovered in commercial quantities in the Jadou area, 700 kilometers from Agadez, and in the Jebel Ebe area, 360 kilometers from Agadez, with operational work not yet commenced in these sites.
There are potential areas such as the Koma Bangou region with gold deposits that the government deems commercially unfeasible and the Irmassif area where GeoAfrica holds a gold mining license, according to “Rire Gold” site.
According to data from the World Gold Council, Niger produced 34.5 tons of gold in 2022.
Iron and Phosphates
Nigeria has significant reserves of:
- Iron ore (9.2 billion tons)
- Phosphates (1.225 billion tons)
Oil and Natural Gas
Niger possesses vast oil reserves. Petroleum was first discovered in the Tintouma and Agadem fields, and data from Savannah Energy indicates that the field could hold at least a billion barrels of oil.
Most of the extracted oil in Niger is processed at the Soraz refinery, with the current oil production capacity in Niger at 20,000 barrels per day, primarily sold locally with some exports to northern Nigeria.
Most identified reserves in Niger are in the Agadem region, currently supplying about 15,000 barrels of oil per day to the Soraz refinery.
Some energy companies estimate that there are 3.754 billion barrels of oil reserves and 957 million barrels of extractable oil reserves.
Current gas reserves are estimated at approximately 34 billion cubic meters, with extractable reserves of 24 billion cubic meters according to the Niger Ministry of Mines statistics.
Who Benefits from Niger’s Wealth?
France has historically monopolized uranium extraction in Niger. Initially, reports indicate that Niger’s share did not exceed 5%.
After citizen protests and some political forces, Niger’s share increased to 15%.
Reports confirm that France extracted an estimated 110 tons between 1971 and 2012, providing 35% of France’s electricity needs.
Despite the country’s vast resources, United Nations Human Development Reports classify Niger as the world’s poorest country, with a per capita income of $608 in 2023.
According to World Bank data, 44.5% of Niger’s population lives in extreme poverty, public debt stands at 45%, and approximately 173 humanitarian organizations provide emergency multi-sector assistance nationwide, including hard-to-reach areas, according to the United Nations.
Economic Trends in Niger After the Coup
After the July 26, 2023 coup, Niger’s economy faced significant challenges due to its pre-existing weakness and the coup’s repercussions, influenced by several factors:
Economic Community of West African States (ECOWAS) Sanctions: The Economic Community of West African States (ECOWAS) imposed stringent economic sanctions on Niger following the coup. These sanctions significantly impacted the country’s ability to access international financial markets and conduct banking transactions.
Cutting International Aid: Major partners like the European Union immediately cut their support after the coup. The European Union had allocated $554 million for development projects in Niger between 2021 and 2024. Additionally, Washington also suspended most support programs, estimated at around $500 million, leading to a reduction in budget support affecting the country’s ability to implement development projects.
Overall, Niger’s GDP growth was expected to be 11% in 2023, according to the African Development Bank. However, the coup and subsequent sanctions led experts to project a growth rate not exceeding 2.3%. The sanctions are expected to push approximately a million people into extreme poverty.
Future Economic Outlook for Niger
The transitional authorities in Niger halted the export of gold and uranium to France as punishment after the July 26, 2023 coup. French companies had been extracting Nigerien uranium since 1970, with one of the noticeable changes being the significant difference in the uranium price, where a kilogram previously equaled $0.8, increasing to $200 after the sales halt to France.
According to various economic forecasts, Niger’s economy is expected to become the fourth-fastest-growing global economy in 2024, ranking first in Africa in terms of growth percentage.
