The Economic Community of West African States has reaffirmed its commitment to introducing a single regional currency, the Eco, by 2027.
This resolve was highlighted during the 11th ECOWAS Convergence Council meeting in Abuja, where financial leaders gathered to strategize on accelerating the currency’s launch to strengthen economic integration and financial stability across the region.
The meeting convened Ministers of Finance and Central Bank Governors from ECOWAS member states, focusing on concrete steps to fast-track monetary unification. Mohammed Manga, Director of Information and Public Relations at Nigeria’s Federal Ministry of Finance, disclosed the details in an official statement.
Presiding over the session, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the importance of monetary and fiscal discipline in realizing the Eco currency. He acknowledged that security concerns, inflationary pressures, and global economic uncertainties have posed significant obstacles to achieving full monetary convergence.
Despite these setbacks, Edun highlighted Nigeria’s recent economic reforms as pivotal strides towards regional stability. These reforms include adjustments in the foreign exchange market to stabilize the naira, enhancements in tax policies to boost revenue, and the removal of fuel subsidies to ensure fiscal sustainability. According to Edun, these measures have contributed to a GDP growth rate of 3.4% in 2024, reinforcing Nigeria’s position and that of the broader ECOWAS region on the path to economic recovery.
Edun also stressed the need for greater regional economic coordination and active participation in shaping global financial policies. He referenced ongoing engagements with South Africa’s G20 presidency as a strategic move to align West Africa’s economic agenda with wider African interests.
“The future of our region lies in unity. We must collaborate to drive economic stability, growth, and prosperity,” Edun stated.
The proposed Eco currency aims to deepen economic integration among ECOWAS member states by:
– Facilitating trade through a unified payment system;
– Enhancing price stability and controlling inflation;
– Attracting foreign direct investment (FDI) by presenting a more stable economic bloc; and
– Simplifying cross-border transactions to ease business operations across West Africa.
While the benefits of the Eco currency are clear, several challenges remain on the path to its implementation. These include:
– Divergent fiscal policies among member states;
– Persistent inflation rates in some economies;
– Foreign exchange volatility; and
– The need for strong institutional frameworks to manage monetary policy effectively.
To tackle these challenges, ECOWAS leaders have pledged to harmonize policies, advance financial reforms, and bolster regional cooperation. The West African Monetary Institute will play a key role in steering the adoption of the Eco and ensuring the necessary groundwork is laid.
