• Bank loans in Niger fell 18.2% in 2024, the steepest decline in WAEMU.

• Long-term loans dropped 18.6%, while short-term loans rose 28.1%.

• Niger posted the highest rate of bad loans in the union at 26.8%.

In 2024, Niger posted the largest contraction in bank lending within the West African Economic and Monetary Union (WAEMU). According to the union’s 2024 annual report published in August, loans granted by the 14 active banks in the country fell by 18.2%. The decline affected both businesses and households.

Mali and Burkina Faso followed with decreases of 1.3% and 0.9% respectively, while the other five countries saw loan growth. Guinea-Bissau led with a 21.4% rise, ahead of Benin (+10.9%), Côte d’Ivoire (+10.7%), Togo (+7.4%), and Senegal (+3%).

In Niger, term loans dropped 6.4% in 2024. Within this category, long-term loans fell by 18.6% to CFA52.7 billion ($93.9 million) at the end of 2024, compared with CFA64.8 billion in 2023. Short-term loans, however, grew by 28.1%, rising from CFA371.9 billion in 2023 to CFA476.3 billion in 2024. This shift shows banks’ preference for shorter commitments, likely due to the country’s economic and financial risks.

Loan quality and banking conditions

The contraction is also tied to the quality of Niger’s loan portfolio. The country recorded the highest level of bad loans in the union, with a rate of 26.8% in 2024. This means a large share of loans is facing repayment difficulties.

By comparison, Guinea-Bissau posted 18.7% and Mali 12.4%. In Niger, total non-performing loans reached CFA391.9 billion at the end of 2024, up 7.5% from 2023. Within this, doubtful and disputed loans rose by 20.9% to CFA337.8 billion, while restructured loans declined by 6.6% to CFA54 billion. This fragile situation has pushed banks to act with greater caution and limit their exposures.

The leading banks in Niger by total assets are Sonibank, BOA Niger, Ecobank Niger, BIA Niger, and BSIC Niger.