The Economic Community of West African States (ECOWAS) is making strides toward launching a unified regional currency by 2027.
Finance Ministers and Central Bank Governors from across West Africa gather in Abuja for the 11th ECOWAS Convergence Council meeting, focusing on strategies to accelerate the implementation of the Eco currency.
The high-level meeting highlights the need for greater economic integration and financial stability in the region, according to an official statement by Mohammed Manga, Director of Information and Public Relations at Nigeria’s Federal Ministry of Finance.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who presided over the session, stressed the importance of fiscal and monetary discipline in achieving the Eco currency.
He identified inflation, security concerns, and global economic instability as major obstacles to full monetary convergence among ECOWAS member states.
Edun outlined Nigeria’s recent economic measures aimed at stabilizing its economy and setting an example for the region.
According to Edun, these reforms contributed to a 3.4 percent GDP growth in 2024, reinforcing Nigeria’s economic resilience and paving the way for a stronger regional economy.
The Minister highlights the necessity of deeper regional collaboration, stating that ECOWAS must align its economic policies with global financial trends. He also emphasizes ongoing discussions with South Africa’s G20 presidency, which offer an opportunity to integrate West Africa’s economic priorities with broader African and international financial policies.
“This is a defining moment for our region. Through unity and collaboration, we can build a stronger, more stable, and prosperous West Africa,” Edun states.
The proposed Eco currency aims to drive economic growth and financial integration by:
- Facilitating seamless cross-border trade and transactions,
- Enhancing price stability and reducing inflationary pressures,
- Attracting foreign direct investment (FDI) by presenting a more stable economic environment, and
- Strengthening financial cooperation among ECOWAS nations.
Despite its potential benefits, the successful rollout of the Eco currency depends on overcoming key challenges, such as:
- Diverging fiscal policies among member states,
- Persistently high inflation and currency fluctuations, structural weaknesses in certain economies, and the need for strong regulatory institutions to manage monetary policy effectively.
ECOWAS leaders reaffirmed their commitment to addressing these obstacles through policy harmonization, economic reforms, and enhanced regional coordination.
The West African Monetary Institute (WAMI), established to guide the Eco currency’s implementation, continues to play a central role in ensuring a smooth transition.
With 2027 approaching, ECOWAS remains focused on fostering a more unified, resilient, and globally competitive regional economy, positioning West Africa as a key player in international trade and finance.
