It is a crossroads for the traditional camel caravans of the Toureg and for traders plying North and South across the Sahara.

It is "the end of the road" and marks the end of the paved section of the Nigerien Route Nationale 1, although the sections past Diffa are notorious for their poor condition.

The town lies at the mouth of the Dilia Bosso, an ancient river valley and seasonal wash that runs from the Termit Massif over 200 km to the northwest to what was the shore of Lake Chad as recently as the mid 20th century.

By the 2000s, even during the rainy season, the nearest access to water was at the village of Doro (a Beri-beri name for "Fishing port") 45 km southwest of N'guigmi.

N'guigmi is home to a large settlement of Kanuri people, as well as settled members of the traditionally pastoral Wodaabe-Fulani and Daza/Toubou ethnic groups.