GDP per Capita in Niger: An Overview of Economic Statistics

Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism.

The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. Let's delve into the specifics of Niger's GDP per capita, exploring its economic structure, key sectors, and the factors influencing its growth and challenges.

Nominal (current) Gross Domestic Product (GDP) of Niger is $16,819,170,421 (USD) as of 2023. Real GDP (constant, inflation adjusted) of Niger reached $14,705,444,104 in 2023. GDP Growth Rate in 2023 was 2.5%, representing a change of 358,669,368 US$ over 2022, when Real GDP was $14,346,774,736. GDP per Capita in Niger (with a population of 26,159,867 people) was $562 in 2023, a decrease of $5 from $567 in 2022; this represents a change of −0.8% in GDP per capita.

Niger shares a common currency, the CFA franc, and a common central bank, the Central Bank of West African States (BCEAO), with seven other members of the West African Monetary Union.

Key Economic Sectors

Niger's economy is based largely on subsistence crops, livestock, and some of the world's largest uranium deposits. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets.

Agriculture and Livestock

The agricultural economy is based largely upon internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs and cattle to neighbors. Niger's agricultural and livestock sectors are the mainstay of all but 18% of the population. 14% of Niger's GDP is generated by livestock production (camels, goats, sheep, and cattle), said to support 29% of the population. Foreign exchange earnings from livestock, although difficult to quantify, are considered the second source of export revenue behind mining and oil exports. Actual exports far exceed official statistics, which often fail to detect large herds of animals informally crossing into Nigeria.

In these areas, Pearl millet, sorghum, and cassava are the principal rain-fed subsistence crops. Irrigated rice for internal consumption is grown in parts of the Niger River valley in the west. While expensive, it has, since the devaluation of the CFA franc, sold for below the price of imported rice, encouraging additional production. Cowpeas and onions are grown for commercial export, as are small quantities of garlic, peppers, potatoes, and wheat.

But for the most part, rural residents engaged in crop tending are clustered in the south centre and south west of the nation, in those areas (the Sahel) which can expect to receive between 300 and 600 mm (12 and 24 in) of rainfall annually. A small area in the southern tip of the nation, surrounding Gaya can expect to receive 700 to 900 mm (28 to 35 in) or rainfall. Northern areas which support crops, such as the southern portions of the Aïr Massif and the Kaouar oasis, rely upon oases and a slight increase in rainfall due to mountain effects. Large portions of the northwest and far east of the nation, while within the Sahara desert, see just enough seasonal rainfall to support semi-nomadic animal husbandry.

Mining and Resources

The Niger mining industry is the main source of national exports, of which uranium is the largest export. Niger has been a uranium exporter since the 1960s and has had substantial export earnings and rapid economic growth during the 1960s and 1970s. The persistent uranium price slump has brought lower revenues for Niger's uranium sector, although it still provides 72% of national export proceeds.

When the uranium-led boom ended in the early 1980s the economy stagnated, and new investment since then has been limited. As of 2007, many licenses have been sold to other companies from countries such as India, China, Canada and Australia in order to exploit new deposits.

In 2013, the government of Niger sought to increase its uranium revenue by subjecting the two mining companies to a 2006 Mining Law. The government argued that the application of the new law will balance an otherwise unfavorable partnership between the government and Areva. The company resisted the application of the new law that it feared would jeopardize the financial health of the companies, citing declining market uranium prices and unfavorable market conditions.

In addition to uranium, exploitable deposits of gold are known to exist in Niger in the region between the Niger River and the border with Burkina Faso. In 2004, the first Nigerien gold ingot was produced from the Samira Hill Gold Mine, in Tera Department. The Samira Hill Gold Mine thus became the first commercial gold production in the country.

SONICHAR (Société Nigerienne de Charbon) in Tchirozerine (north of Agadez) extracts coal from an open pit and fuels an electricity generating plant that supplies energy to the uranium mines. Based on 2012 reports by the government of Niger, 246016 tons of coal were extracted by SONICHAR in 2011. There are additional coal deposits to the south and west that are of a higher quality and may be exploitable.

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The history of oil prospecting and discovery goes back to the independence era with the first discovery of the Tintouma oil field in Madama in 1975. Niger announced that in exchange for the US$5 billion investment, the Chinese company would build wells, 11 of which would open by 2012, a 20,000-barrel-per-day (3,200 m3/d) SORAZ refinery near Zinder, and a pipeline out of the nation. The government estimates the area has reserves of 324 million barrels (51,500,000 m3), and is seeking further oil in the Tenere Desert and near Bilma.

Impact of Uranium on GDP

Much of this GDP is explained through the exploitation of uranium at Arlit in the far north of the country. Ore is partially processed on site by foreign mining corporations and transported by truck to Benin. Fluctuation of GDP can be mapped to changes in international uranium prices, as well as price negotiations with the main mining company, France's Orano Cycle. Price rises in the mid-1970s were followed by a collapse in the market price through much of the 1980s and 1990s. Thus the country's GDP per capita has little direct impact on the average Nigerien, although uranium funds much government operation.

Influences and Challenges

Drought cycles, desertification, a 3.4% population growth rate, and the drop in world demand for uranium have undercut an already marginal economy. Traditional subsistence farming, herding, small trading, and informal markets dominate an economy that generates few formal sector jobs. The GDP per capita of Niger grew 10% in the 1960s. However, this proved unsustainable and it consequently shrank by 27% in the 1980s and a further 48% in the 1990s.

The economic competitiveness created by the January 1994 devaluation of the Communauté Financière Africaine (CFA) franc contributed to an annual average economic growth of 3.5% throughout the mid-1990s. But the economy stagnated due to the sharp reduction in foreign aid in 1999 (which gradually resumed in 2000) and poor rains in 2000.

As one of the Sahelian nations in West Africa, Niger has faced several droughts which led to food shortages and, in some cases, famines since its independence in 1963. This includes a series of droughts in the 1970s and 1980s and more recently in 2005-2006 and again in 2010. Rainfall varies and when it is insufficient, Niger has difficulty feeding its population and must rely on grain purchases and food aid to meet food requirements.

Role of Foreign Aid and Investment

The government relies on bilateral and multilateral aid - which was suspended briefly following coups in 1996 and 1999 - for operating expenses and public investment. Short-term prospects depend on continued World Bank and IMF debt relief and extended aid. The post-1999 government has broadly adhered to privatization and market deregulation plans instituted by these funders. In recent years, the Government of Niger promulgated revisions to the investment code (1997 and 2000), petroleum code (1992), and mining code (1993), all with attractive terms for investors.

The present government actively seeks foreign private investment and considers it key to restoring economic growth and development. In January 2000, Niger's newly elected government inherited serious financial and economic problems including a virtually empty treasury, past-due salaries (11 months of arrears) and scholarship payments, increased debt, reduced revenue performance, and lower public investment.

In addition to changes in the budgetary process and public finances, the new government has pursued economic restructuring towards the IMF promoted privatization model. This has included the privatization of water distribution and telecommunications and the removal of price protections for petroleum products, allowing prices to be set by world market prices. Further privatizations of public enterprises are in the works.

The most important donors in Niger are France, the European Union, the World Bank, the IMF and other United Nations agencies (UNDP, UNICEF, FAO, WFP, NGOs, and UNFPA). Other principal donors include the United States, Belgium, Germany, Switzerland, Canada, and Saudi Arabia. The US is also a major partner in policy coordination in such areas as food security and HIV/AIDS.

Economic Indicators

The following table shows the main economic indicators in 1980-2020 (with IMF staff estimates in 2021-2026):

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