Di Economic Community of West African States, Ecowas, don tok say dem dey on track and determined to achieved a common currency for di region by 2027.
Dis na one of di key deliberations for di 11th Ecowas Convergence Council wey happen for Abuja on Monday, March 2, 2025.
For dat event wey Nigeria Finance Minister, Wale Edun, bin chair, e say some issues such as security challenges, inflation, and global economic disruptions, follow for wetin dey slow down di progress wey dem dey make toward achieving dis objective of a common currency for di West African sub-region.
However, oga Edun give assurance say Nigeria still dey very committed to regional economic cooperation, and e add say dia is need for monetary and fiscal discipline.
But wetin be dis new common currency wey Ecowas dey propose, how e go work and wetin be di need for am?
Di ‘Eco’ currency
Plans to introduce a single currency for di Ecowas member states dey dated back to 2003, but di launch don dey postponed several times; in 2005, 2010 and 2014.
But members of di Ecowas eventually agree to introduce di common currency – wey im name go be ‘Eco’ – during di 55th ordinary session of body wey happen for Abuja in July 2019.
For dat meeting, dem agree to adopt a flexible currency regime and di launch go be in 2020. Dem also agree to collaborate wit di West African Monetary Agency, di West African Monetary Institute, and West African Central Banks, to help dem to implement di idea.
However, di Covid pandemic of 2020 and di economic crisis wey follow am, mean say di launch of di new currency get to dey postponed to a later dat.
In 2021, for di 59th ordinary session of Ecowas in Accra, Ghana, dem agree on a new roadmap wey go see di launch of di ‘Eco’ by 2027.
“Due to di shock of di pandemic, di heads of state don decide to suspend di implementation of di convergence pact in 2020-2021. We don get a new road map and a new convergence pact wey go cover di period between 2022-2026, and 2027 go be di launch of di Eco,” Jean-Claude Kassi Brou, wey be di president of di ECOWAS Commission dat time bin announce.
Who go use di ‘Eco’ currency?
If, or wen, di Eco currency start to dey exist, e dey expected say e go be legal tender for all di kontris wey be members of Ecowas.
Mali, Burkina Faso and Niger republic, wey don pull out of Ecowas to form dia own coalition, bin don announce say dem dey consider to get dia own common currency and passport.
E dey important to highlight here say in 2019, afta Ecowas agree to introduce di Eco, eight of di member kontris (mostly French-speaking) bin announce say dem dey ready to adopt di Eco as dia currnecy.
Dis na sake of say dis kontris bin already dey use a common currency – di Franc Cefa wey dey pegged against di Euro – so dem simply want to rename dia currency from Francs cefa to Eco.
Di eight kontris na Benin Republic, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. But di English-speaking members of Ecowas, led by Nigeria, bin reject di idea.
Single currency dey important?
Some economic sabi pipo believe say a single currency get im own benefits for di West African region.
Pipo wey support di idea say e go help to facilitate trade, bring down transaction costs and make payments easier amongst di almost 400 million pipo wey dey live for di region.
Economists Ferdinand Backoup and Daniel Ndoye, for inside one breifing note wey dem write for di Africa Development Bank in 2019, tok say “a single currency go prove a valuable instrument in di international monetary system”.
“West African kontris – like oda developing countries – no dey immune to monetary shocks caused by policies implemented in di rest of di world. A single currency fit give dem chance to put up a collective and effective front against dis disruptions,” dem write.
However, critics dey wey no think say di idea of a unified currency fit materialise.
Dis set of pipo believe say di problem of boosting trade for West African no be lack of a common currency.
Sanyade Okoli of di Alpha African Advisory tell di BBC in 2019 say for goods to move freely, Africa need to first address poor infrastructure and plenty bureaucracy.
“How we dey even talk about a single currency?” she ask. “We dey struggle for inside Nigeria alone to transport produce from di north to Lagos, and to oda southern parts.”
“West African countries must transform dia economies, with diversification and added value industries,” e tok.
“Dat na di real solution to face external shocks and volatility.”
For Martial Belinga, author of Liberate Africa From Monetary Slavery, e say di major issue na for West African kontris to transform dia economies wit diversification and added value industries.
“Dat na di real solution to face external shocks and volatility,” e tok.