| Summary: | This paper presents Niger’s First Review under the Extended Credit Facility Arrangement and Request for Modification of Performance Criteria. The unfolding acute food crisis and the deteriorating security situation in the Sahel region have increased fiscal pressures. The war in Ukraine is exacerbating these challenges. The near- and medium-term economic outlook for Niger is broadly favorable with growth projected to bounce back this year and accelerate thereafter with the start of oil exports through the new pipeline. A temporary deviation from fiscal targets over 2022–23 is therefore appropriate. Stepped-up efforts to improve domestic revenue mobilization and enhance spending quality will be key. A temporary deviation from fiscal targets over 2022–23 is warranted to accommodate urgent spending needs related to the food crisis and lower budget-support grants from donors. Rising financial sector vulnerabilities, including those related to deteriorating asset quality, particularly in the microfinance sector, will need to be carefully monitored. Further efforts to foster financial inclusion are also needed. Program performance has been broadly satisfactory with all quantitative performance criteria and indicative targets at end-December 2021 met. The implementation of the structural reform agenda is advancing well
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