Nigeria pushes for ECOWAS single currency
Nigeria’s Minister of Finance, Wale Edun, has reaffirmed the country’s commitment to implementing the Economic Community of West African States (ECOWAS) single currency, the ECO.
This comes despite recent setbacks, with the convergence rate among member states falling to 29.2% in 2023, significantly lower than the target for adoption.
Edun’s statement, made during a virtual high-level committee meeting on Friday, indicates a renewed push for the ECO, with the meeting focusing on practical arrangements for introducing the currency, suggesting a shift towards concrete action.
According to a statement on Friday by Mohammed Manga, the ministry’s director of press and public relations, Edun spoke on Thursday when he hosted a virtual high-level committee meeting at the finance headquarters in Abuja.
Manga said the meeting was held to discuss the practical arrangements for introducing the ECOWAS single currency, known as the ECO. He said the ECO aims to promote economic integration, facilitate trade, and enhance monetary stability among the fifteen ECOWAS member states.
“The meeting brought together key stakeholders, including the Central Bank of Nigeria, the Honourable Minister of Finance of Cape Verde, Mr. Olavo Correia, the Honourable Minister of Finance and Economic Affairs of Cote d’Ivoire, Mr. Adama Coulibaly, and the Ghanaian Honourable Minister of Finance, Mr. Mohammed Amin Adam, as well as other distinguished representatives,” Manga said.
“HM Edun emphasised the importance of the ECO in fostering economic growth and development in the region and reiterated Nigeria’s commitment to the successful implementation of the single currency.”
However, challenges remain. The low convergence rate highlights economic disparities within ECOWAS.
Member states need to achieve specific economic benchmarks before the ECO can be launched. This may require stricter fiscal discipline and regional economic reforms.
While Edun’s statement expresses optimism, it’s crucial to monitor progress on convergence criteria. The success of the ECO hinges on strong regional economic integration and addressing existing economic imbalances.
