ECOWAS Moves Forward with Single Regional Currency, Targets 2027 Launch

The Economic Community of West African States (ECOWAS) has reaffirmed its commitment to launching a single regional currency, the Eco, by 2027. This was disclosed in a statement signed by Mohammed Manga, the Director of Information and Public Relations at the Federal Ministry of Finance, during the 11th ECOWAS Convergence Council meeting in Abuja. The gathering brought together ministers of finance and central bank governors from member states to discuss strategies for fast-tracking the currency’s introduction and strengthening economic integration in the region.

Nigeria Emphasizes Monetary Discipline for Eco’s Success

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’s successful implementation. He highlighted major obstacles, including security challenges, inflation, and global economic disruptions, which have slowed down progress towards full monetary convergence. These challenges, he noted, must be effectively managed for ECOWAS to meet its 2027 target.

A Long Road to a Single Currency

ECOWAS initially agreed to launch the Eco in January 2020 at its 55th ordinary session in July 2019. However, the 15-member regional bloc later revised the timeline, postponing the launch to 2027 following a new roadmap adopted at its 59th ordinary session in Ghana in 2021. The delay was attributed to economic instability and the need for stronger policy alignment among member states.

Nigeria’s Economic Reforms and Regional Integration Efforts

At the Abuja meeting, Edun reaffirmed Nigeria’s commitment to regional economic cooperation and emphasized the country’s ongoing economic reforms. He highlighted key measures, including foreign exchange (FX) market reforms, tax policy improvements, and the removal of petrol subsidies, which have contributed to a gross domestic product (GDP) growth rate of 3.4% in 2024 and enhanced fiscal sustainability.

Beyond domestic policies, Edun underscored the need for stronger regional coordination and ECOWAS’ role in shaping global financial policies. He called for enhanced cooperation among member states to ensure the successful adoption of the Eco, emphasizing that a unified currency would boost trade, economic stability, and financial integration in West Africa.