The Economic Community of West African States (ECOWAS) is advancing plans to introduce a unified regional currency, the Eco, by 2027.
Finance Ministers and Central Bank Governors from across West Africa convene in Abuja for the 11th ECOWAS Convergence Council meeting, where they discuss strategies to accelerate the currency’s implementation.
The meeting underscores the importance of economic integration and financial stability in the region. Mohammed Manga, Director of Information and Public Relations at Nigeria’s Federal Ministry of Finance, confirms these discussions in an official statement.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who chairs the session, highlights the necessity of fiscal and monetary discipline for the Eco’s success.
He identifies inflation, security issues, and global economic uncertainty as major challenges to achieving full monetary convergence among ECOWAS nations.
Edun also outlines Nigeria’s recent economic initiatives aimed at stabilizing the country’s economy and serving as a model for the region. These measures have contributed to a 3.4% GDP growth in 2024, reinforcing Nigeria’s economic resilience and paving the way for stronger regional cooperation.
He stresses the need for deeper regional collaboration, stating that ECOWAS must align its economic policies with global financial trends. He also highlights discussions with South Africa’s G20 presidency as a chance to integrate West Africa’s economic priorities with broader African and global financial strategies.
“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 Eco currency is expected to boost economic growth and financial integration by:
Facilitating seamless cross-border trade and transactions,
Enhancing price stability and curbing inflation,
Attracting foreign direct investment (FDI) by creating a more stable economic environment, and
Strengthening financial cooperation among ECOWAS nations.
However, several challenges must be addressed for a successful rollout, including:
Differences in fiscal policies among member states,
Persistent inflation and currency fluctuations,
Structural weaknesses in some economies, and
The need for strong regulatory institutions to manage monetary policy effectively.
ECOWAS leaders reaffirm their commitment to overcoming these hurdles through policy alignment, economic reforms, and enhanced regional coordination. The West African Monetary Institute (WAMI), tasked with guiding the Eco’s implementation, continues to play a key role in ensuring a smooth transition.
With 2027 approaching, ECOWAS remains dedicated to fostering a more unified, resilient, and globally competitive regional economy, strengthening West Africa’s position in international trade and finance.
