Niger misses $22 million principal payment on one-year bond.

Niger misses $22 million principal payment on one-year bond.
Arial of Niamey in Niger by Homocosmicos - Adobe Stock Images

The Nigerien government missed a 13.4 billion CFA franc ($22 million) principal payment on a one-year bond due in February 2024.

Why is this important: The West African country was subject to a coup last year, resulting in The Economic Community of West African States( ECOWAS) suspending all commercial and financial transactions between its member states and Niger. This has added strain on the nation's finances and the inability of the country to meet its financial obligations to outside creditors.

The bottom line: The West African nation is tipped as one of Africa's promising nations by the AfDB. However, its total missed payments have accumulated to $604 million in arrears, which poses a risk to local companies and financial institutions' credit viability. Niger, Mali and Burkina Faso, who are also under military rule, have formed an Alliance of Sahel States as a response to the ECOWAS suspension.

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