By Richard ABANGWU InvestAdvocate

Lagos (INVESTADVOCATE)-Western African Country Niger Republic will receive US$16.9 million Extended Credit Facility (ECF) from the International Monetary Fund (IMF).

This is coming on the heels of the Executive Board of the IMF conclusion of its first review of Niger’s economic performance under the program supported by a three-year, SDR 78.96 million (about US$118.3 million)ECF arrangement approved by the IMF’s Executive Board on March 16, 2012.

The Fund says the decision enables an immediate disbursement of an amount equivalent to SDR 11.28 million (about US$16.9 million), bringing total disbursements under the arrangement to an amount equivalent to SDR 22.56 million (US$33.8 million).

Also, in completing the review, the Executive Board of the IMF approved the request for a waiver for nonobservance of the performance criterion on new non-concessional external debt with maturities of one year or more.

“The Executive Board’s decision on the first review was taken on a lapse of time basis” the IMF said.

According to the IMF, economic activity of Niger was buoyant in 2012, with economic growth estimated at over 11 percent (11%), “thanks to the coming on-stream of a new oil project and a rebound in agricultural production” the IMF said.

The IMF affirmed that average inflation of the country is estimated to have remained slightly below 1%, as upward pressures on food prices caused by food shortages in the first part of the year were largely offset by lower energy prices.

“Credit to the private sector expanded significantly, driven by high credit demand from public enterprises and trading firms. The current account deficit is projected to decline, reflecting the coming on-stream of petroleum production resulting in net exports of petroleum products” the IMF affirmed.

Niger’s Fiscal Revenues in 2012 increased relative to 2011, but are likely to fall short of program targets for 2012 due to weaknesses in customs and oil revenue.

“All end-June quantitative performance criteria were met, but at the expense of expenditure constraint. Several end-September fiscal targets were missed as spending increased in order to bring poverty-reducing spending back in line with program targets and due to an increase in military spending following the deterioration in the regional security situation” the IMF said.

IMF further affirmed that Medium-term prospects remain positive, thanks to ongoing investment in the natural resource sector, with growth projected at 6¼% in 2013 and inflation projected to remain moderate.