FATF Status

Niger is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Niger was undertaken in 2021. According to that Evaluation, Niger was deemed Compliant for 10 and Largely Compliant for 16 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness  & Technical Compliance ratings.

US State Department INCSR

Niger was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Niger is one of the poorest and least developed countries in the world. Niger is not a regional financial center; its banking sector is rudimentary. It is a member of the Central Bank of West African States (BCEAO), and so shares its central bank and currency, the CFA Franc, with other countries in the region. High transaction costs deter businesses from placing large amounts of cash in the banking system. Most economic activity takes place in the informal, cash-based financial sector; and informal remitters and other money and value transfer services are widespread.

With porous borders and a large, under-governed territory, Niger provides an ideal transit point for various criminal organizations and terrorist groups.  are commonplace in Niger. Illegal proceeds derive from trafficking of drugs, small arms, people, and everyday commodities across the Algerian and Libyan borders in the sparsely-populated north of the country. The regional smuggling of huge quantities of cigarettes across the Sahel is also very lucrative for traffickers in Niger. Cigarettes from counterfeit plants, mainly from Nigeria, are distributed in the region, the Maghreb, the Middle East, and Europe. Kidnapping for ransom is a significant fundraising method for terrorist groups. Other factors affecting security are the continuing rise in regional instability, including continued threats to security posed by al- Qaida and its affiliates, the Islamic State of Iraq and the Levant (ISIL), Malian jihadist groups, and the Nigeria-based terror group Boko Haram, which has attacked communities in Niger’s Diffa region on many occasions since the beginning of the year.

In October 2014, the National Assembly President Hama Amadou, a leading opposition figure, fled Niger to avoid being arrested on criminal charges. He returned to the country in November 2015 and was immediately arrested. As of November 2015, the political climate in Niger is contentious.  Opposition groups have demonstrated to protest the continued detention of Amadou, a perceived failure of the state to provide basic services, and perceived restrictions on freedom of speech and expression. Meanwhile, national and local elections are scheduled to take place in February and May 2016, respectively.

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           32

World Governance Indicator – Control of Corruption             31

Corruption represents a high risk for businesses in Niger, mostly due to low salaries and weak administrative controls. Corruption is especially rampant in the police and the judiciary, negatively impacting the administration of public services and land. The government of Mahamadou Issoufou has committed to actively address corruption and has made some progress in this regard. Despite high levels of corruption, surveys indicate trust in the government and its institutions. Nigerien anti-corruption legislation is weak, underdeveloped, and poorly enforced. Niger has accessed the United Nations Convention against Corruption and is on its way to aligning its legislation. For further information - GAN Integrity Business Anti-Corruption Portal

Niger’s Foreign Direct Investment (FDI) has increased over the past decade. The Government of Niger (GON) is eager to attract FDI and has taken slow, deliberate steps to improve its business climate and appeal to foreign investors through reforms seeking to liberalize the economy, encourage privatization, and create new export processing zones. In late 2023, Niger expects its new China National Petroleum Corporation (CNPC) pipeline will come online and expects the pipeline to generate significant revenue. The World Bank reports real GDP growth will reach 6.9 percent in 2023, with an increase to 12.5 percent in 2024, due in large part to expected revenues from the pipeline.

In his second year in power, President Mohamed Bazoum has prioritized economic growth and development and has actively encouraged foreign investment, including from the United States. Over the past year, President Bazoum has reiterated the need for FDI in official visits abroad, including the U.S.-Africa Leaders Forum in December 2022, and has hosted several business forums to encourage investment from international partners such as the European Union and Turkey, for example. Sectors such as agriculture, petroleum, infrastructure, and mining have historically attracted significant investment.

In 2017, the GON created the High Council for Investment, an organization tasked with supporting and promoting FDI in Niger. In 2018, the GON established an electronic platform, the Guichet Unique du Commerce Exterieur, to simplify and streamline the procedures for importing and exporting goods from Niger.

Over the past year, U.S. firms have expressed greater interest in investing in Niger in sectors including energy and cybersecurity. However, challenges including insecurity and the presence of violent extremist organizations, as well as limited internet, road, and energy services and infrastructure, have been deterrents to U.S. firms seeking to invest in Niger.

Prospective investors are discouraged by Niger’s small markets, limited infrastructure, bureaucratic delays, shortages of local capital, and high transportation costs. Investors have also cited Niger’s limited pool of skilled labor, lack of regulatory clarity, and unreliable supply chains as challenges. Child labor also remains a challenge. While the Department of Labor found that Niger made moderate advancement in efforts to eliminate the worst forms of child labor in 2021, children in Niger are subjected to the worst forms of child labor, including in the mining sector, sometimes as a result of human trafficking.

The Millennium Challenge Corporation (MCC) and the Governments of Benin and Niger signed the first regional compacts totaling $504 million, with additional contributions of $15 million from Benin and Niger, to support regional economic integration, trade, and cross-border collaboration. Support for the port of Cotonou-Niamey transit corridor is expected to boost infrastructure for trade and investments. President Bazoum has expressed his strong support for this to increase the investment attractiveness of Niger.

Due in part to Russia’s war of aggression against Ukraine, Niger’s domestic food and agricultural input markets faced increased pressures. In 2022, Niger faced an unprecedented food crisis. The March 2022 Cadre Harmonisé found that 4.4 million people were acutely food insecure during the lean season (June – August), exacerbated by the global food price crisis, supply chain disruptions and increased food and transportation costs. The World Bank reported Niger’s average annual inflation rate reached a 10-year high of 4.2 percent in 2022, an increase from 3.8 percent in 2021; however, Niger had the lowest inflation rate in the West African Economic and Monetary Union (WAEMU) region due to a better-than-average rainy season.

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Country Links

Central Bank of West African States (BCEAO)