Niger is currently under massive economic pressure following the coup in late July 2023. The international community has enforced a set of economic and financial sanctions that are weakening the Nigerien economy. Indeed, Niger's budget has taken a huge 40% hit following its coup and international sanctions. This has had a devastating impact on the country's economy and its people.
According to Business Insider Africa, uncertainties surround budget reductions as details of where cuts will occur remain undisclosed. Moreover, a growing debt burden also adds to Niger’s economic challenges. The announcement stated that the budget for this year, which was originally estimated to be $3.29 trillion CFA Francs ($5.3 billion), had been reduced to 1.98 trillion CFA Francs, but did not specify where the reductions would occur.
The regional ECOWAS group, the European Union, and the United States all denounced the seizure and responded by imposing penalties, freezing assets, or stopping aid. Food prices have increased significantly and there is a lack of essential items, such as life-saving medications, as a result of a trade blockade.
The budget cuts have meant that the government has had to slash spending possibly on essential services such as healthcare, education, and infrastructure. This has had a direct impact on the lives of millions of Nigeriens, who are now struggling to access basic necessities.
The economic situation in Niger is already dire, with the country ranked as one of the poorest in the world. The coup and sanctions have made the situation even worse, and there is now a serious risk of a humanitarian crisis. However, this situation does not seem to bother the junta as its popularity continues to remain very strong.
The military is increasing the debt burden in a number of ways. First, it increases government spending. The coup government has increased spending on the military and security forces in order to maintain its power. This has led to a decrease in government revenue and an increase in government debt.
Second, reduced economic activities have been contributing to the increase in the debt burden. The coup has led to a decrease in economic activity in Niger. This is due to a number of factors, including the uncertainty surrounding the coup, the imposition of sanctions by the international community, and the fear of violence and instability. The decrease in economic activity has led to a decrease in government revenue and an increase in government debt.
Third, the loss of confidence from investors also led to an increase in the debt burden. The coup has led to a loss of confidence from investors in Niger. This is due to the uncertainty surrounding the coup and the fear of instability. The loss of confidence has made it difficult for the government to attract foreign investment and loans. This has led to an increase in government debt.
The seventh-largest producer of uranium, the radioactive element needed to make nuclear energy and treat cancer, is Niger. Its reserve became a subject of contention following the coup, with some experts predicting that the political instability in the West African country would affect the global Uranium trade, while the West assured that their Uranium supply would at the most be slightly affected.