Senegal President Bassirou Diomaye Faye has dismissed Prime Minister Ousmane Sonko and dissolved the government, deepening uncertainty in the West African state as it attempts to restart suspended negotiations with the International Monetary Fund (IMF) and stabilise deteriorating public finances.

A statement broadcast on state media on May 22 said all ministers had been dismissed, with the outgoing administration remaining in place in a caretaker role until a new government is formed.

The political rupture between Faye and Sonko comes at a particularly sensitive moment for Senegal’s economy after the IMF froze a $1.8bn lending programme following the discovery of previously misreported public debt figures. According to comments cited by Reuters, revised calculations pushed Senegal’s end-2024 debt burden to around 132% of GDP.

Senegal’s debt crisis emerged after an audit launched by the new administration found that liabilities accumulated under former president Macky Sall had been significantly underreported.

The revised figures sharply increased concerns over debt sustainability, fiscal transparency and the country’s ability to finance rising subsidy and infrastructure costs. The deterioration also triggered renewed scrutiny from international lenders and ratings agencies, complicating Dakar’s access to external financing at a time of elevated global borrowing costs.

The political split threatens to complicate efforts to secure a new agreement with the IMF, which investors view as critical for restoring confidence, improving fiscal transparency and supporting external financing access.

Earlier on May 22, Finance Minister Cheikh Diba told parliament that Senegal expected to resume discussions with the IMF during the week of June 8 and hoped to reach agreement on key points before the end of June.

Diba also warned lawmakers that Senegal’s fuel subsidy bill could exceed the 2026 budget allocation by as much as CFA1.15trillion ($2bn) if oil prices rise to $115 per barrel. He added that Sonko had rejected proposals to increase domestic fuel prices.

The two leaders had increasingly diverged over economic policy and relations with international lenders. Sonko publicly opposed measures associated with IMF-backed fiscal adjustment discussions and repeatedly argued that Senegal should avoid policies that could worsen living costs.

Political tensions had been building for months despite the pair’s joint rise to power in 2024 under the ruling Pastef party. Sonko, a charismatic opposition figure with a strong youth following, had backed Faye’s presidential candidacy after being barred from running because of a defamation conviction.

Faye went on to win the election with 54% of the vote before appointing Sonko prime minister.

In a social media post following the announcement, Sonko appeared unfazed by the dismissal, saying he would “sleep with a light heart” at his residence in Dakar’s Keur Gorgui district.

Pastef retains a dominant majority in the National Assembly, potentially complicating governance and the passage of reforms needed to unlock renewed IMF support.

The former prime minister built his political reputation through anti-establishment and pan-Africanist campaigns targeting corruption, economic inequality and foreign influence over Senegal’s natural resources sector.

One of Sonko’s signature initiatives in government was a review of mining and hydrocarbon agreements linked to Senegal’s emerging oil and gas industry.

In March, he criticised contractual terms governing the Greater Tortue Ahmeyim LNG project operated by BP (LON:BP) and partner Kosmos Energy (NYSE:KOS), arguing that existing agreements did not sufficiently benefit Senegal.

His administration also revoked 71 mining licences as part of a broader resource-sector audit aimed at increasing state revenues and tightening oversight.

Senegal only recently joined the ranks of hydrocarbon producers following the launch of the offshore Sangomar oil field and the start-up of the Greater Tortue Ahmeyim LNG project shared with neighbouring Mauritania. Authorities had hoped energy revenues would help strengthen fiscal balances and reduce financing pressures, but the debt crisis and suspension of IMF support have complicated those ambitions.

The dismissal of Sonko now introduces fresh political uncertainty at a time when Dakar is attempting to reassure creditors, restart IMF negotiations and manage rising fiscal pressures linked to subsidies, debt servicing and ambitious state spending plans.