Niger: Four months after the coup, banks and the population are on the brink of a financial crisis

The coup in Niger in July was sanctioned by ECOWAS. At the end of December, these sanctions destabilized the country's economy. Withdrawing money is becoming increasingly complicated in Niger.

Published on December 17, 2023 4:28 p.m

Reading time: 2 minutes

CFA franc notes, the currency particularly in Niger. (ISSOUF SANOGO / AFP)

In front of one of Niger's first banks, in Niamey, the capital, the queue flows onto the street and the crowd becomes more and more impatient. Due to the lack of cash, ATMs are empty and counters are overcrowded. More than four months after the July 26 military coup, the banks are on the verge of collapse. Concern is growing in this country, which is one of the poorest in the world. In a report released on Thursday, December 14, the World Bank and the United Nations warn of the risks of an economic crisis if ECOWAS sanctions are not lifted by the end of January.

In Niamey, Ousseni Adamou, a civil servant, has been shuttling between the counter and his office since 7 a.m. in the hope of snagging a few tickets. “I registered my name, I had the number 75,” he says. I went to the office and they passed on my number, so I registered again and found the list with the number level 300. I got back there around 11:30 in the morning, and they are still at 260. Now the list goes to about 500. And there I was just informed that the machine is out of money and they are waiting for it to be delivered.”

He therefore has to come back in the afternoon. Withdrawing your salary has become a problem, especially given the banknote shortage. Withdrawals are limited to 50,000 CFA francs per day per person or 70 euros.

“This is the third time I have to collect my salary for the month of November. And I still don’t have it all figured out.”

Ousseni Adamou, a civil servant living in Niamey

at franceinfo

A man with the number 260 is standing next to him. He is suffering from a toothache and urgently needs fluids so that he can go to the doctor: “Unfortunately that is not possible at this rate. I have to postpone it. It's the same everywhere. There isn’t really a stable bank.”

The “counterproductive effects” of sanctions

In Niger, ECOWAS sanctions are hitting residents hard, more than 40% of whom live below the poverty line. Economist Ali Rabiou from the University of Niamey is concerned about the devastating consequences for the population. “The longer it takes, the more the weakest bear the consequences,” he analyzes. “When there is a lack of liquidity, when there is not even flour to bake bread, when there is only one plate.” If rice remains in Niger, it is eaten at the top of the state. It will be served to the new authorities, not to the population. The ECOWAS measures have had counterproductive effects.”

Meanwhile, the ruling junta continues its standoff with ECOWAS. The latter continues to demand the release of the ex-president, who has been seized by the military since the end of July, and a short-term transition.