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Niger - increase in government revenue from the sector despite fall in production

Niger - increase in government revenue from the sector despite fall in production

Despite slumping mineral prices and a slowing economy, Niger’s government revenues from the extractive industries grew by 18% in 2013. The recently published EITI Report covering 2013 data provides insight into the extent to which the state can rely on the extractive industries as a source of income, despite lower output and prices.  

Decline in production… 

Niger’s economic growth slowed considerably from 11% in 2012 to 4% in 2013, primarily due to lower agricultural and mining output.  In addition to uranium (the world’s fourth-largest producer), Niger also produced coal, gold and crude oil. The 2013 EITI Report includes production figures, information about the transport of oil from the Agadem oilfield to the Zinder refinery, exports and employment data, and government revenues from Artisanal and Small Scale Mining (ASM). The report showed that all crude oil and coal were consumed domestically.  It highlighted that Niger’s economy remains reliant on exports of uranium and gold, which are all exported and account for 49% and 4% of total exports respectively. The 5% fall in uranium exports to 4,382 tonnes in 2013 was compounded by lower prices, which caused the value of sales to drop by over 10% to XOF 303 billion (USD 613 million). Likewise gold export volumes slumped 28% to 1,153kgs while their value contracted by 38% to XOF 27 billion (USD 54 million).  

Caption: The Report shows the relative income of each revenue stream

…Higher take 

While the extractive industries’ share of the economy remained stable between 2012 and 2013, government revenue from the sector increased by 18% to XOF 226 billion (USD 457 million) in 2013, driven particularly by a sevenfold increase in income from license fees and bonuses to XOF 14 billion (USD 28 million).  These related to the award of 38 new licences in mining and one in oil and gas. Royalties also played a role, increasing 35% to XOF 3.3 billion (USD 6 million).  

Read the full Niger 2013 EITI Report (PDF) 

To find out more about the EITI in Niger, visit the country page on eiti.org or Niger’s EITI website.

 

Countries
Niger