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Business News

ECOWAS’ new currency will be called “Eco” and could replace the Naira

The introduction of a unified currency into the West African region is aimed at harnessing economic trade and integration among member-nations of the regional [email protected]_cedeao @cenbank

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How Nigeria can benefit from ECOWAS' intended single currency, ecowas new currency

The Authority of the Economic Community of West African States (ECOWAS), alongside Heads of States and Governments, has adopted a flexible single currency ‘Eco’ as its trade currency to be issued by January 2020. This comes after the bloc’s 55th Ordinary Session which took place over the weekend in Abuja. The new currency could replace the Naira.

The regional body disclosed earlier that considerable progress had been made, leading to the adoption of the name “Eco” and a flexible exchange rate regime which will be issued starting from early next year.

Why was the Eco adopted? The introduction of a unified currency into the West African region is aimed at harnessing economic trade and integration among member-nations of the regional body.

ECOWAS new currency will be called Eco and could replace the Naira

Head of states and Governments of ECOWAS during the 55th Ordinary Session

[READ FURTHER: Nigeria is not ready for ECOWAS common currency]

In a communique read by Nigeria’s Permanent Secretary at the Ministry of Foreign Affairs, Mr. Mustapha Suleiman, the regional body was instructed to collaborate with West African Monetary Agency, West African Monetary Institute, and West African Central Banks for speedy implementation of the revised road-map, which will be presented at the next meeting.

Reports from sources disclosed that the Central Bank governors and West African Finance Ministers had earlier agreed on technical issues bordering the creation of the single currency for the bloc next year.

“At a ministerial level, we’ve established a road-map for the establishment of a new currency”, Ivory Coast’s Finance Minister, Adama Kone, stated in Abidjan.

Challenges ahead for Nigeria: Nigeria, which is the continent’s largest economy and the largest contributor to the region’s gross domestic product (GDP) by 75%, may soon have to contend with a challenge following this development.

Analysts are of the opinion that the adoption of the new single currency for trade within the region might have a catastrophic effect on Nigeria’s economy and the Naira. They have termed the move a “premature ideology” considering the region’s trade agreement which Nigeria has yet to sign.

As Nairametrics earlier reported, a report by SB Morgen opined that the adoption of a unified currency system may several shortcomings. The report also highlighted some major economic issues that call for concern.

[Read More: Fitch claims until 2028 before Nigeria exit damages caused by Buharinomics]

The Eco could replace the Naira: The Nigerian Naira is a national symbol which portrays the nation’s identity in trade. The adoption of the Eco could send the Nigerian Naira into extinction. This will be reminiscent of what happened when the European Union adopted the Euro as a single currency.

ECOWAS new currency will be Eco and could replace the Naira

Nigerian Naira

Interest and Exchange rate adjustments: The adoption of the Eco could result in the monetary authority Nigeria (i.e., the CBN) losing its power to adjust the interest and exchange rates. The CBN adjusts the interest and exchange rates with the aim of encouraging investments whilst spurring economic growth.

Jaiz bank

Charles Abuede is a graduate of Economics and Statistics from the University of Benin. He has worked as a business correspondent at Voidant Wireless Service (Pryde TV) and Entrepreneurs.ng. He is currently a Research Analyst at Nairametrics. You can reach him on [email protected] or @CharlesAbuede on LinkedIn and @AbuedeCharles on twitter.

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    Real Estate

    FG to unveil dedicated portal for sale of houses to Nigerians

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

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    Nigeria needs N1.5 trillion within the next 3 years to fix roads - Fashola

    The Federal Government has announced plans to launch a dedicated web portal for the sale of buildings to Nigerians in the next few weeks.

    The platform is expected to help contributors to the National Housing Fund (NHF) access mortgage loans on a first-come, first-serve basis.

    This disclosure was made by the Minister of Works and Housing, Babatunde Raji Fashola while speaking at the ninth meeting of the National Council on Lands, Housing and Urban Development in Jos, Plateau State.

    Fashola, who was represented by the Minister of State for Works and Housing, Abubakar Aliyu, pointed out that the ministry is currently at the completion stages of the first phase of the national housing programme in 34 states of the federation, which provided land for it.

    He said, “We urge the state governments to alert their residents to this opportunity for interested persons to apply.”

    Fashola commended the Federal Mortgage Bank of Nigeria (FMBN) for being at the forefront of the cooperative housing initiative at the federal level, adding that it has the advantage of allowing cooperative members to choose what they design and build to fit their budgets.

    They can leverage their members to get group discount for the purchase of building materials as well as the engagement of contractors.

    Fashola disclosed that FMBN as the driver of the housing initiative has engaged 86 co-operatives in projects; approved N35, 784 billion cumulatively; disbursed N10.95 billion; and processed as at January, 57 co-operative housing development loans.

    Hotflex

    Fashola emphasized that what the Federal Government can do directly in housing is limited compared to what states can do, just as state governments are also limited, compared to what the private sector and individuals can do.

    He said, “The majority of houses available for sale or rent belong to individuals and private companies compared to what states or Federal Government has available. Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property are dealing with private citizens or companies and less so with government agencies.’

    My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the Federal Government has given back to citizens some of what it controls.’’

    He explained, “for example in cases where the rent of businesses or individuals are due for renewal, the private landlords can give back, by accepting monthly, quarterly or half-yearly rent instead of one year, two or three years rent in advance.”

    Bottom line

    Nigeria has been bedevilled by a housing crisis that has left Africa’s most populous nation ill-equipped to properly provide accommodation for its citizens and inhabitants.

    Some of the housing problems in the country include unresolved rent tenure arrangements, high cost of building materials, access to infrastructure, deficiency of housing finance arrangements, stringent loan conditions from mortgage banks, time to process legal documents and inadequate government housing policies.

    Jaiz bank

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    Coronavirus

    Covid-19: Nigeria committed to procuring 29 million J&J vaccines

    The Nigerian Government is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative. 

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    AstraZeneca suspends COVID-19 vaccine final stage trial over safety concerns, COVID-19: J&J starts vaccine trials on humans after success on monkeys

    The Nigerian Government says it is still committed to acquiring 29.59 million doses of Johnson & Johnson covid-19 vaccines through the Afrixem Bank AVAT initiative.

    This was disclosed Mrs Zainab Ahmed, Minister of Finance at the recent ‘Collaborative Africa Budget Reform Initiative (CABRI) General Assembly webinar.

    What the Minister said

    “Therefore, the supplementary budget for COVID-19 vaccines will cover the cost of additional vaccines over and above those provided by COVAX, as well as the full cost of operations and logistics for delivering the vaccines around the country.

    Already, the sum of N29.1 billion has been released from the Routine Immunization budgetary provision (Service Wide Vote) to the National Primary Healthcare Development Agency (NPHCDA) as an advance for the operational cost of deployment of the COVID-19 vaccines. The N29.1 billion represents about 52 percent of the amount required over 2021-22,” she said.

    She added that FG plans to vaccinate 70 percent of eligible (18 years and above) Nigerians over the 2021 and 2022 fiscal years, with the COVAX agreement willing to cover 43.1 million of the eligible population.

    In case you missed it

    The World Health Organization (WHO)  announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.

    Continue Reading

      





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