Nigeria pushes for ECOWAS single currency, despite challenges

Nigeria’s Finance Minister, Wale Edun, has reiterated his country’s commitment to implementing the Economic Community of West African States (ECOWAS) single currency, ECO.

This is despite recent setbacks, with the convergence rate among member states falling to 29.2% in 2023, well below the adoption target.

Edun’s remarks, delivered during a virtual high-level committee meeting on Friday, signaled a renewed push for the ECO, with the meeting focusing on practical arrangements for introducing the currency, indicating a shift to concrete action.

According to a statement on Friday by Mohammed Manga, the ministry’s director of press and public relations, Edun spoke on Thursday as he hosted a virtual high-level committee meeting at the finance headquarters in Abuja.

Manga said the meeting was held to discuss practical arrangements for introducing the ECOWAS single currency, known as ECO.

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He said ECO aims to promote economic integration, facilitate trade and enhance monetary stability among the fifteen ECOWAS member states.

“The meeting brought together key stakeholders, including the Central Bank of Nigeria, the Honourable Minister of Finance of Cape Verde, Mr. Olavo Correia, the Honourable Minister of Finance and Economic Affairs of Côte d’Ivoire, Mr. Adama Coulibaly, and the Honourable Minister of Finance of Ghana, Mr. Mohammed Amin Adam, as well as a number of other distinguished representatives,” Manga said.

“HM Edun stressed the importance of ECO in driving economic growth and development in the region and reiterated Nigeria’s commitment to the successful implementation of the single currency.”

However, challenges remain. The low convergence rate highlights the economic disparities within ECOWAS. Member states need to achieve certain economic benchmarks before the ECO can be launched. This may require tighter fiscal discipline and regional economic reforms.

While Edun’s statement is optimistic, monitoring progress on the convergence criteria is important. The success of the ECO depends on strong regional economic integration and addressing existing economic imbalances.

Nigeria pushes for ECOWAS single currency, despite challenges first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.