Nigeria Renews Push for West African Single Currency as ECOWAS Hold Talks

By Adedapo Adesanya

Nigeria is stepping up engagement toward the creation of a regional single currency, following fresh consultations among West African monetary authorities, following constant delay of achieving the goal.

In an update by the Central Bank of Nigeria (CBN) via its X handle, the Governor of the apex bank, Mr Yemi Cardoso, led the country’s delegation to the Committee of Governors meeting held in Monrovia, Liberia, where policymakers reviewed progress and renewed discussions on establishing the long-proposed single currency known as the Eco.

Last year, the West African bloc announced that the single regional currency would be launched by 2027 to foster greater economic integration among member states by facilitating trade through a unified payment system, enhancing price stability and reducing inflationary pressures.

In the latest development, the CBN statement noted that the Nigerian delegation also included Deputy Governor (Economic Policy), Mr Muhammad Sani Abdullahi.

“The meeting formed part of statutory engagements jointly organised by the Economic Community of West African States alongside the West African Monetary Agency, the West African Monetary Institute, and the West African Institute for Financial and Economic Management. The consultations brought together financial regulators and economic policymakers across the sub-region to assess convergence benchmarks required for launching the unified currency”, the apex bank said.

The Eco project is designed to deepen economic integration among ECOWAS member states by providing a common legal tender that would facilitate cross-border trade, enhance price transparency and reduce transaction costs tied to multiple currency exchanges. The initiative has been under discussion for over two decades but has experienced repeated postponements as member countries struggle to meet strict macroeconomic convergence criteria.

The apex bank noted that the meeting focused on evaluating member states’ performance against key economic indicators. These include inflation rate ceilings, fiscal deficit thresholds relative to gross domestic product, and foreign reserve adequacy, all considered critical safeguards for ensuring stability within a potential monetary union.

Despite many delays, ECOWAS latest move shows it may be aligning with Nigeria’s Minister of Foreign Affairs, Mr Yusuf Tuggar, saying last year that member states have started attaining benchmarks to see the goal actualised.