Niger Economy

Niger Economy


  • Basic data
  • Public finances and the state budget
  • Banking system
  • Tax System

Basic data

According to, Niger has long been among the poorest and least developed countries in the world. Most of the population is threatened by cyclical crop-destroying droughts and famine. Drought, deforestation, very rapid population growth and currently the security situation in the south of the country represent a permanent threat to the country’s development. The economy is oriented towards commodities without higher added value and is thus very vulnerable and dependent on external influences. The economy also suffers from considerable remoteness from the rest of the world and underdeveloped infrastructure. Niger’s economy is small and very little diversified. Niger has large reserves of mineral resources (uranium, oil, coal, gold, etc.), yet it is one of the poorest countries, the economy of which is largely dependent on agriculture and pastoralism (they provide a living for 90% of the population), uranium mining, in the last time and oil and foreign aid. Despite positive economic growth, living conditions improve only slowly due to the huge birth rate. The number of inhabitants has doubled in the last 15 years to the current approx. 24 million.

Due to the rapidly growing population, the climatic conditions of the country and the lack of other natural resources, the provision of sustenance or food the country’s key problem. Industry contributes 18.6% to the creation of GDP. Industrial production focused on the processing of agricultural raw materials, the production of soap, food and beverages, textiles and cement. Agriculture remains the backbone of the Nigerian economy. The agriculture sector accounts for about 40% of the total GDP, but it employs up to 90% of the population. The service sector already accounts for 43.7% of GDP. The largest part of this sector remains transport services (most goods are imported into the country from the port of Cotonou, less from Lomé, Tema, Takoradi; now also Abijan or Dakar) and logistics for regional trade (simple wholesale and retail services). The most important export items are uranium ore, oil, slaughter animals, onion. All consumer goods, machines and machinery, foodstuffs of all kinds and petroleum products are imported.

Pointer 2019 2020 2021 2022 2023
GDP growth (%) 5.9 -2.8 4.8 5.1 5.9
GDP/population (USD/PPP) 1,966.90 1,980.30 2,060.00 2,180.00 2,280.0
Inflation (%) -2.5 1.2 3.8 4.5 4.2
Unemployment (%) 0.5 0.7 ON ON ON
Export of goods (billion USD) 1.1 0.9 1.2 1.2 1.3
Import of goods (billion USD) 2.7 2.6 3.4 3.5 3.5
Trade Balance (Billion USD) -1.2 -1.4 -1.5 -1.5 -1.5
Industrial production (% change) ON ON ON ON ON
Population (millions) 23.3 24.2 25.1 26.1 27.1
Competitiveness ON ON ON ON ON
OECD export risk 07.VII 07.VII 07.VII ON ON

Source: EIU, OECD, IMD

Public finance and state budget

Public finance 2021
State budget balance (% of GDP) -2.6
Public debt (% of GDP) 49.7
Current account balance (billion USD) -1.8
Taxes 2022
F.O 1-35%
VAT 19%

In 2021, the global economic recovery has fueled renewed growth in Niger’s commodity- and export-oriented economy. Fiscal revenues will therefore recover along with the recovery in exports. Public finances will be supported by higher export earnings in 2022, ensuring a second year of revenue growth as the economy accelerates more strongly this year. Spending in 2021 fell slightly in connection with dealing with the negative effects of the corona on the economy and the persistently high costs of security and vaccines. Overall, the fiscal deficit is reduced to 3.6% of GDP in 2021 (a return to economic growth improves the ability of taxpayers to meet their obligations and emergency budget support is reduced). In 2022, as spending continues to fall while revenues rise, the deficit will further decrease to 2.4% of GDP.

In the years 2022-23, construction projects interrupted by the pandemic will continue and investments focused on the development of infrastructure and the construction of the Benin-Niger oil pipeline, which should bring additional revenue to the country’s budget in the future and thus support the development of the economy.

Banking system

The central bank responsible for monetary policy is the West African Central Bank (Banque Centrale des États de l’Afrique de l’Ouest – BCEAO), which is headquartered in Dakar, Senegal and provides services to all seven members of the UEMOA (Union Monétaire Ouest Africaine). It supervises the activities of commercial banks in the countries of the Commonwealth and issues currency. In its monetary policy, it basically copies the decisions of the European Central Bank. The CFA franc is firmly tied to the Euro, the exchange rate is 655.96 FCFA/1Euro. Although the banking sector is developing, it is still underdeveloped compared to some neighboring countries.

There are 11 commercial banks and 1 financial company operating in the country: • Bank of Africa – Niger • Banque agricole du Niger • Banque Atlantique – Niger • Banque Commerciale du Niger (Libyan capital) • Banque internationale pour l’Afrique au Niger (BIA) • Banque Islamique du Niger • Banque sahélo-saharienne pour l’investissement et le commerce (BSIC) • CBAO Groupe Attijawafa bank (Niger) • Orabank Cote d’Ivoire (Niger) • Ecobank Niger • Société nigérienne de banque (SONIBANK) • Société Sahélienne de Financing (SAHFI)

Banks offer the usual range of banking products for both private individuals and businesses (account management, letters of credit, commercial loans, various promissory notes, etc.). However, loans for medium and long-term investments by private entities are very difficult to obtain. Most of the banks mentioned above also issue international payment cards, their use is limited even in the capital. Financial operations outside the UEMOA zone in foreign currency can be carried out on the basis of complete documentation and are subject to the control of the Ministry of Finance. The interest rate is 4%.

Tax system

Companies registered in Niger as well as branches of non-resident companies are subject to tax obligations. Corporate income tax is paid on profits generated in Niger. Individuals (natives and resident foreigners) should pay tax in Niger based on worldwide income. Others pay tax only on income in Niger. A foreigner whose main residence or economic activities are in Niger is considered a resident.

The Nigerian tax system consists of the following basic direct and indirect taxes and employee social insurance:

  • Personal income tax (non-commercial income, employment income): progressive in the range of 1% (annual income 0-25000 FCFA) – 35% (above 1 million FCFA),
  • Corporate profit tax: 35%, or 2% of annual turnover
  • Value added tax: 19%, this tax does not apply to goods intended for export, some imported goods (e.g. pharmaceutical products, books and educational materials, basic foodstuffs), as well as to medical, banking services and cultural performances • Social insurance ( Social Insurance): 15.9% of the salary is paid by the company, 5.25% by the employee

Businesses and natural persons are obliged to make other payments and taxes such as payroll tax (payroll tax – 2% for nationals, 4% for foreigners), real estate tax (1% for legal entities, 5-10% for natural persons), withholding tax ( withholding tax: 10% dividends and royalties, 16% service, 20% interest) etc.

Capital gains are included in the company’s profit.

Niger Economy