Senegalese Prime Minister Ousmane Sonko announced sweeping economic reforms on Thursday, describing a BP gas contract as “unfair,” revoking 71 mining licenses, and freezing the accounts of a major Indorama subsidiary until it pays the state approximately €380 million ($438 million).
“The contracts that have been signed are unfair contracts, which we intend to discuss in detail,” Sonko said in a televised address. The government audit found that a gas agreement for the Greater Tortue Ahmeyim project, operated by BP, was one-sided and detrimental to Senegal’s interests. Sonko also noted that other contracts related to fishing and infrastructure were under review, promising a full publication of the findings.
BP did not respond to requests for comment. Sonko said renegotiating these agreements would strengthen Senegal’s finances and deliver cheaper gas to both industries and citizens.
The West African nation is grappling with a debt burden of 132% of GDP as of the end of 2024, according to the International Monetary Fund (IMF), which suspended its lending program after an audit revealed misreported debt. Despite the financial challenges, Sonko has said Senegal will avoid a formal restructuring plan.
In addition to resource-sector reforms, the government plans to close 19 agencies to save funds. Social tensions have grown, with university students protesting unpaid financial aid and teachers’ unions conducting nationwide strikes over salary issues and taxes.
The recent measures mark the most concrete steps yet from Sonko’s administration, which came to power in 2024 promising audits of resource contracts and reforms to rebuild Senegal’s economic stability.
