What Can Make Nigeria Abandon Naira for ECOWAS Currency 

Image

By Adedapo Adesanya

Nigeria could swap the Naira for the single currency being proposed by the Economic Community of West African States (ECOWAS) if good monetary and fiscal policies are put in place, Business Post analysis shows.

Originally intended to be launched in 2000, the ECO, which is the currency being considered, has been postponed multiple times; and the newest target date set is 2020.

With this, it means six member countries, including Nigeria, Liberia, Sierra-Leone, and Ghana; could swap their currencies for the ECO. ECOWAS countries like Benin Republic, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo currently jointly use the CFA franc.

The 15-member group had announced at the end of an ECOWAS summit in Abuja in July 2019 that part of its plans was to redress the region’s economic problems. It was stated at the gathering that the adoption of ECO could set things in motion.

Mahamadou Issoufou, the president of Niger Republic, who also doubles as the ECOWAS chairman, explained that there was a real firm political will to increase efforts ahead of the January 2020 deadline.

“We are of the view that countries that are ready will launch the single currency and countries; that are not ready will join the programme as they comply with all six convergence criteria,” Issoufou said at the past ECOWAS meeting.

However, the African Development Bank Group (AfDB) in a report said; “The 2020 deadline for the single currency will most like be postponed again unless West African countries can align with their monetary and fiscal policies.”

But ECOWAS has since pushed ahead as it stated that it will be working with the West African Monetary Agency (WAMA), the West Africa Monetary Institute (WAMI), and central banks of West African nations to speed up the implementation of a new road map for the proposed single trade currency.

On Nigeria’s part, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, recently noted that the proposed date for the commencement of a single-currency regime for West Africa may not be realised as many countries within the region have yet to meet the criteria for the monetary union.

She said only Togo had met criteria to adopt the ECO, and with only the country achieving this, it would be difficult to operate the single currency regime by next year, which is just few days away.

To be able to adopt the single currency, key demands for entry are for countries to have a deficit of less than 3 percent of gross domestic product (GDP), inflation of 10 percent or under and debts worth less than 70 percent of GDP, but Nigeria’s GDP stands at less than 2.3 percent (Q3 ’19) while its inflation as at November 2019 was 11.85 percent.

However, despite the increase in the Nigeria’s debt profile, the country’s debt-to-Gross Domestic Product (GDP) ratio is still well below the average for sub-Saharan Africa and Africa as a whole as the International Monetary Fund (IMF) noted last month.

Share
Related Stories
Image
29-February-2024

Crude Oil Mixed on Undecided US Interest Rates Move, High Inventories

By Adedapo Adesanya Crude oil futures settled mixed on Wednesday after the US Federal Reserve held firm on its decision to hold off cutting interest rates soon while growing crude stockpiles in the world’s largest producer added further pressure. Brent crude futures settled 3 cents higher, or up 0.04 per cent at $83.68 a barrel while the US West Texas Intermediate futures (WTI) settled 33 cents lower, or down 0.42 per cent at $78.54. The market was unsteady over signs that interest rates in the world’s largest economy would remain elevated. US Federal Reserve Bank of New York President John

Image
28-February-2024

Naira Loses N33 to Trade at N1,615/$1 at Official Market

By Dipo Olowookere It was a bad day for the Naira in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), on Tuesday as its value weakened by N33.00 or 2.09 per cent against the United States Dollar to sell at N1,615.94/$1 compared with the previous day’s N1,582.94/$1. This came on a day the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, reemphasised that the Nigerian currency was grossly undervalued. While briefing newsmen yesterday on the outcome of the Monetary Policy Committee (MPC) meeting, Mr Cardoso stressed that the current rate was not the true value

Image
29-February-2024

MasterCard, MTN Partner to Boost Digital Commerce, Payments

By Aduragbemi Omiyale A partnership aimed at driving acceleration of the mobile money ecosystem in Africa across 13 markets has been entered into between Mastercard and MTN Group Fintech. This is coming shortly after the payments giant completed the purchase of a minority stake in the telecommunications company. The deal will see Mastercard giving a prepaid virtual card tailored for MTN’s MoMo customers, granting them access to over 100 million acceptance points worldwide. Additionally, it will empower MoMo merchants to seamlessly accept card payments, enhancing the platform’s instant cross-border money remittance services and capabilities. Further, Mastercard will use its cutting-edge

Image
29-February-2024

Naira Gains as Binance, Others Halt USDT, USDC Exchanges Amid Crackdown

By Adedapo Adesanya The Naira appreciated against the US Dollar in the foreign exchange (FX) market on Wednesday, February 28 as crypto exchanges like Binance, will no longer allow users to buy the US Dollar Tether (USDT) and US Dollar Coin (USDC) stablecoins with Naira after renewed scrutiny from the Nigerian government. The regulatory crackdown continued in the Nigerian FX market as the country moved to aggressively suppress the activities of spectators and traders across digital platforms. On Wednesday, the Nigerian government tricked two executives of Binance – an American and a British Pakistani into the country for a meeting

More Stories
Image
04-June-2020

Crude Oil Market Drops as Producers Fail to Meet Thursday

By Adedapo Adesanya Oil prices fell after hitting $40 per barrel at one stage on Wednesday, June 3 for the first time since March because oil producers won’t meet this week to discuss next step to crude production cuts as expected. The news that producers could meet this week instead of next week served as good news to investors, but oil fell when reports revealed that a meeting planned for Thursday was unlikely. Algeria, which holds the rotating OPEC presidency, had proposed that OPEC+ hold a meeting on June 4 rather than next week. However, with a failure to meet

Image
15-December-2022

Lagos Speaker Mourns Demola Seriki

By Modupe Gbadeyanka The Speaker of the Lagos State House of Assembly, Mr Mudashiru Obasa, has expressed sadness over the death of Nigeria’s Ambassador to Spain, Mr Demola Seriki. The Lagos socialite and politician died on Thursday morning in Madrid, the Spanish capital. It was said that he breathed his last peacefully, surrounded by his family. Mr Obasa, in a statement issued by his Chief Press Secretary (CPS), Mr Eromosele Ebhomele, described the demise of Mr Seriki as painful, saying Nigeria has lost a patriot. The lawmaker said the sudden death of the former Minister of Defence was shocking beyond

Image
25-November-2021

CSCS Weakens Unlisted Securities’ Market Cap by N3.95bn

By Adedapo Adesanya The decline in the price of Central Securities Clearing Systems (CSCS) Plc further dampened the mood at the NASD Over-the-Counter (OTC) Securities Exchange on Wednesday, weakening the exchange by 0.64 per cent. At the close of business yesterday, the market capitalisation of the OTC bourse went down by N3.95 billion to N611.74 billion from N615.69 billion, while the NASD Unlisted Security Index (NSI) decreased by 4.78 points to wrap the session at 740.45 points compared with 745.23 points recorded at the previous session. The stock price of CSCS Plc again depreciated by 79 kobo or 4.8 per

Image
28-July-2017

Dangote Cement CFO Brain Egan Becomes Executive Director

By Modupe Gbadeyanka The Group Chief Financial Officer (CFO) of Dangote Cement Plc, Mr Brian Egan, has been appointed as the Executive Director, Finance. This news was revealed in a statement issued by the cement firm on Friday. Mr Egan, who joined the Africa’s largest cement producer in April 2014, was promoted following the “significant contribution he has made to the group.” Chairman of Dangote Cement Plc, Mr Aliko Dangote, who commented on the development, enthused that, “I am delighted to welcome Brian to our board. His appointment as Executive Director, Finance, reflects the significant contribution he has made to

Image
24-March-2019

Cadbury Nigeria Improves PBT by 249%, to Pay 25 Kobo Dividend

By Dipo Olowookere The 2018 financial year was good for Cadbury Nigeria Plc after going through turbulent times few years ago as a result of recession in the country. The financial results released by the board last week showed that there was an 8.75 percent improvement in the revenue generated in the period under review. The company said its earnings in 2018 FY grew to N36 billion from N33.1 billion, while the gross profit rose to N8 billion from N7.4 billion. However, the cost of sales increased by 9.25 percent to N28 billion from N25.7 billion, while the finance cost

Image
14-October-2018

Court Orders Seplat Chairman to Pay Diamond Bank, Skye Bank $114m

By Dipo Olowookere Founder and chairman of Seplat Petroleum Development Company (Seplat) Plc, Mr Ambrosie Bryant Chukwueloka Orjiako, has been directed to pay the sum of $144.2 million to three banks being the outstanding and accrued interest of a facility granted to him and one of his companies in 2011. Seplat is a company trading its shares on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE). The trained medical doctor and his firm, Shebah Exploration and Production Company Limited had dragged Skye Bank (now defunct and known as Polaris Bank), Diamond Bank and the Africa Import

Image
27-January-2020

N23bn Stocks Exchange Hands in 21,156 Deals in One Week

By Modupe Gbadeyanka Last week, 1.2 billion shares worth N22.8 billion were transacted on the floor of the Nigerian Stock Exchange (NSE) in 21,156 deals compared with the 2.1 billion stocks valued at N26.5 billion that exchanged hands the previous week in 24,262 deals. A breakdown showed that equities in the financial services industry dominated trading with 837.5 million units worth N10.5 billion executed in 12,041 deals, contributing 67.69 percent and 46.17 percent to the total equity turnover volume and value respectively. It was also observed that shares in the industrial goods sector followed with 154.5 million units worth N3.0

Image
09-July-2021

Crude Oil Rises as US Stockpiles Decline Amid OPEC Feud

By Adedapo Adesanya Crude oil prices rose on Thursday after the United States Energy Information Administration (EIA) report showed rapidly declining inventories and record-high fuel demand in the midst of the peak summer driving season. The EIA reported an inventory draw of 6.9 million barrels for the week to July 2 compared with a draw of 6.7 million barrels for the previous week. Analysts had expected the EIA to report a 3.925 million barrels draw in crude oil inventories for the week. This is coming after the American Petroleum Institute (API) reported a seventh straight weekly inventory draw on Wednesday.

Ad
Ad
Recent Stories
Image
01-March-2024

Unlisted Securities Remain in Negative Territory by 1.36%

By Adedapo Adesanya Correction at the NASD Over-the-Counter (OTC) Securities Exchange continued as it recorded a 1.36 per cent loss on Thursday, February 29. The bourse lost N21.34 million of its value during the trading session to close at N1.542 trillion compared with the preceding day’s N1.564 trillion and the NASD Unlisted Security Index (NSI) went down by 15.74 points to end the day at 1,138.05 points versus Wednesday’s 1,153.79 points. Yesterday’s decline was influenced by Aradel Holdings Plc, which further suffered further profit-taking, causing its price to drop N98.25 to close at N2,401.75 per share versus the preceding session’s

Image
01-March-2024

Naira Firms to N1,595/$1 at NAFEX, Weakens to N1,500/$1 at Black Market

By Adedapo Adesanya The Naira ended a tumultuous February as it recorded a price appreciation f 0.09 per cent or N14.40 against the US Dollar on Thursday, February 29, in the Nigerian Autonomous Foreign Exchange Market (NAFEM). Data obtained from the FMDQ Securities Exchange showed that the value of the local currency closed at N1,595.11/$1 during the session compared with the preceding day’s N1,609.51/$1. Also, the Nigerian currency improved its value against the Pound Sterling in the official market yesterday by N20.34 to close at N2,046.19/£1 compared with the preceding session’s N2,066.53/£1 and strengthened against the Euro by N16.5 to

Image
01-March-2024

Oil Down as US Inflation Signals Weak Crude Demand

By Adedapo Adesanya  Oil was down on Thursday as inflation data in the United States implied a softening of the world’s biggest economy that could weaken crude demand. Brent futures went down by 6 cents to $83.62 a barrel and the US West Texas Intermediate (WTI) futures depreciated by 28 cents to $78.26 a barrel. The US Federal Reserve’s preferred inflation gauge, the US Personal Consumption Expenditures (PCE) index, showed January inflation in line with economists’ expectations. The index rose 0.3 per cent last month, the Commerce Department’s Bureau of Economic Analysis said. Data for December was revised lower to

Image
01-March-2024

Local Stock Market Rebounds, Closes Last Day of February 0.68% Higher

By Dipo Olowookere The last trading session of February 2024 at the Nigerian Exchange (NGX) Limited ended on a positive note as it rebounded by 0.68 per cent after the interest rate hike scare. The growth posted on Thursday was triggered by bargain-hunting in financial stocks, especially those selling at cheaper prices after the sell-offs in the past few sessions. However, profit-taking persisted in the other sectors of the bourse, with the energy, and consumer goods indices closing lower by 0.33 per cent, and 0.18 per cent, respectively. Business Post reports that the banking space rose by 6.14 per cent,

Image
29-February-2024

EnjoyCorp Buys Heineken’s Stake in Champion Breweries

By Adedapo Adesanya EnjoyCorp Limited, a holding company established for food, beverage and hospitality brands, has reached an agreement with Heineken B.V., to acquire its entire shareholding in The Raysun Nigeria Company Limited. The firm holds an 86.5 per cent stake in Champion Breweries Plc, a leading regional brewer listed on the Nigerian Exchange (NGX) Limited. The proposed transaction is subject to obtaining requisite regulatory approvals and the parties expect to close the transaction in the second quarter of this year (Q2 2024). EnjoyCorp intends to keep Champion Breweries Plc listed on the NGX. Heineken will continue to support Champion

Image
29-February-2024

Nigerian Navy Impounds Stolen N8.6bn Crude, Others in Three Weeks

By Adedapo Adesanya The Nigerian Navy, through the Troops of Operation Delta Sanity, has deactivated 41 illegal refining sites and impounded stolen crude oil and other products worth N8.6 billion in three weeks. The Director of Naval Information, Mr Adedotun Ayo-Vaughan, a Rear Admiral, made the disclosure in a statement, saying that various Nigerian Navy platforms were deployed for the operation meant to combat oil theft and illegal oil bunkering plaguing Nigeria’s maritime environment. He said that between February 5 and February 22, a total of 51 wooden boats and three fibre ones were apprehended, while 104 illegal refining ovens,

Image
29-February-2024

The Future of Blockchain and Cryptocurrency in the Online Gambling Industry

The online gambling industry, characterized by its rapid evolution and global reach, has established itself as a dynamic and lucrative sector. With millions of enthusiasts partaking in diverse gambling activities, ranging from casino games and sports betting to poker and more, it has transcended geographical boundaries and time zones. The allure of convenience, accessibility, and the thrill of gaming from the comfort of one’s own space has fueled its relentless growth. As technology continues to redefine the boundaries of the digital world, the online gambling sector finds itself at the forefront of innovation, poised for further expansion and transformation. The

Image
29-February-2024

We Need Investment in Mass Transit After 50% Drop in Petrol Imports—Tinubu

By Aduragbemi Omiyale President Bola Tinubu has disclosed that Nigeria has reduced the importation of premium motor spirit (PMS), commonly known as petrol, by 50 per cent since his administration announced an end to fuel subsidy last year. On Monday 29, 2023, during his inaugural speech in Abuja, Mr Tinubu declared that “fuel subsidy is gone” and almost immediately, the price of the product went up across the country. Before his announcement, a litre of petrol was selling at N165 but at the moment, it sells between N568 per litre and N650 per litre, depending on the location and fuel

Image
29-February-2024

Navigating the Complex World of Investing: What Novices Need to Know

Have you finally decided to take the leap into the exciting arena of investing? Not only is this an excellent way to secure a lucrative nest egg for the future, but many have begun to use these opportunities as a springboard for their businesses. However, appreciating the intricacies of online trading is no easy task. A great deal of preparation will be required and mistakes can occur on occasion. This is why knowing where to begin is one of the best ways to establish strong foundations. Let us therefore cut through a fair amount of “fluff” and examine a handful

Image
29-February-2024

No Going Back on Reforms—Tinubu

By Adedapo Adesanya President Bola Tinubu has said there is no going back on the reforms embarked upon by his government that have led to the hike of essential goods and services in the country. He made this known as he inaugurated the Red Line Rail Project in Lagos on Thursday. The project, an intra-state rail service, is aimed at improving transportation within the city and spans 37 kilometres. Speaking while inaugurating the project, the President reiterated his administration’s commitment to improving the nation’s infrastructural development. He said, “But this revolution that has started, this reform that is ongoing, we