The Lagos Chamber of Commerce and Industry (LCCI) has urged President Bola Tinubu to use his leadership of the Economic Community of West African States (ECOWAS) to drive the implementation of the proposed common currency for the sub-region, “eco”.
Describing Tinubu’s emergence as ECOWAS leader as a laudable and well-deserved feat, LCCI’s President, Dr Michael Olawale-Cole, in a statement released on Tuesday said the implementation of the eco currency would be a critical success factor for Tinubu. According to him, eco would ease the burden of payment and foreign exchange fluctuation and the attendant impact on trade in the West African region.
Olawale-Cole noted that as the largest economy in Africa, Nigeria was expected to play a significant role in the region and the continent as a whole. He, however, noted that in spite of the continent’s significant achievements, there were still a number of barriers inhibiting the free flow of goods and services within the region.
The Barriers to Trade
Highlighting some of the challenges inhibiting smooth trade in the sub-region, the LCCI president said they included onerous regulations, weak payment platforms, security risks, high transportation costs, and corruption.
- “Consequently, the region has experienced low trade which has hampered economic growth and development. However, despite these limitations, Nigeria is still held to a high standard, especially in terms of setting policy direction on issues affecting the region.
- “LCCI recommends that under your able leadership, the issues that affect trade will be appropriately dealt with. We are assured that your wealth of knowledge, commitment, and track record of governance and leadership will undoubtedly be a significant advantage as you tackle the challenges currently facing the region” he said.
He assured President Tinubu of the readiness of the Chamber “to assist in whatever ways possible in ensuring your success as the ECOWAS Chairman and to actualize the dreams of ECOWAS.”
In case you missed it
President Bola Tinubu emerged as the new chairman of the ECOWAS at the 63rd Ordinary Session of the Authority of Heads of State and Government on Sunday in Bissau, Guinea-Bissau.
Expressing his gratitude for being elected Chairman in his first participation at the summit as Nigeria’s leader, President Tinubu stated his humility and honour in being entrusted with the leadership of the regional body. He assured everyone of his unwavering commitment to serving the interests of the community.
Tinubu emphasized his dedication to regional integration and outlined his priorities as Chairman, which include political stability, peace and security, regional economic integration, and strengthening of ECOWAS institutions.
Take a look at the recent predicament that dogged both Nigeria’s Dangote and Ethiopia Airlines.
Problems with US Dollar availability led to inability of these large leading multinational businesses to repatriate earnings to their respective operating bases. The two companies collaborated and did a swap with their transnational earnings.
The problems being highlighted in the ECOWAS examples discussed in the above article persist throughout the whole of Africa.
An AFRICA-WIDE currency backed by the combined treasuries of all Africa’s nations (possibly including the Middle East Gulf oil states) could propel and transform this mighty continent into a real world player.
You cannot have an Africa-wide currency when the economic indices of different African nations are such divergence (eg, with inflation in the 30-40% range in some nations, and low single-digits in others). The best solution at the moment is PAPSS, the continent-wide payment system being promoted by the Afrieximbank and several major African banks that would allow settlement of trade among several African nation in local currencies.
This is so wonderful now it’s dependent to our leaders especially giant of Africa Nigeria particular should be the front of this era they should be the number one who’s supposed to take decision we should not lack behind we are the giant of Africa we have to show examples to other African countries that we are 100% under support of it