The Economic Community of West African States (ECOWAS) has taken steps towards achieving a single regional currency by 2027, as financial leaders gathered in Abuja for the 11th ECOWAS Convergence Council meeting.
The meeting, which brought together Ministers of Finance and Central Bank Governors, focused on strategies to fast-track the much-anticipated launch of the Eco currency to boost economic integration and financial stability in West Africa.
This was disclosed in a statement signed by Mohammed Manga, FCAI, Director of Information and Public Relations at the Federal Ministry of Finance, on Monday.
Chairing the session, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stressed the importance of monetary and fiscal discipline in achieving the Eco currency. He highlighted the impact of security challenges, inflation, and global economic disruptions as key obstacles slowing down progress toward full monetary convergence.
However, Edun pointed to Nigeria’s recent economic reforms, including:
- Foreign exchange market reforms to stabilize the naira,
- Tax policy enhancements to improve revenue generation, and
- Fuel subsidy removal to enhance fiscal sustainability.
According to him, these measures have contributed to a GDP growth of 3.4% in 2024, setting a positive trajectory for regional economic stability.
Stronger Regional Coordination and Global Financial Engagement
Beyond national policy adjustments, the Minister stressed the importance of stronger regional economic coordination and ECOWAS’s role in shaping global financial policies.
He also emphasized the ongoing engagements with South Africa’s G20 presidency, which present a strategic opportunity to align West Africa’s economic agenda with broader African economic objectives.
“This is our opportunity to shape the future of our region. We must work together to drive economic stability, growth, and prosperity,” Edun concluded.
What the Eco Currency Means for West Africa
The proposed Eco currency aims to foster greater economic integration among ECOWAS member states by:
- Facilitating trade through a unified payment system,
- Enhancing price stability and reducing inflationary pressures,
- Attracting foreign direct investment (FDI) by presenting a more stable economic bloc, and
- Improving cross-border transactions, making it easier for businesses to operate seamlessly across West Africa.
Challenges and Roadmap to 2027 Implementation
While the Eco currency offers significant economic benefits, challenges remain, including:
- Divergent fiscal policies among member states,
- High inflation rates in some economies,
- Foreign exchange volatility, and
- The need for strong institutional frameworks to manage monetary policy effectively.
ECOWAS leaders have committed to addressing these challenges through policy harmonization, financial reforms, and enhanced regional cooperation.
For the purpose of adoption of Eco Single Currency, West African Money Institute, WAMI, was set up.