Nigeria has renewed its commitment to the long-anticipated West African single currency, the Eco, following fresh high-level consultations among regional monetary authorities.
In a statement released on Monday via its official X handle, the Central Bank of Nigeria (CBN) confirmed that its Governor, Olayemi Cardoso, led Nigeria’s delegation to the Committee of Governors meeting held in Monrovia, Liberia. The meeting focused on reviewing progress and reviving discussions around the establishment of the proposed Eco currency.
Also part of the Nigerian delegation was the Deputy Governor (Economic Policy), Muhammad Sani Abdullahi.
According to the apex bank, the meeting formed part of statutory engagements jointly organized by the Economic Community of West African States (ECOWAS), the West African Monetary Agency (WAMA), the West African Monetary Institute (WAMI), and the West African Institute for Financial and Economic Management (WAIFEM).
The consultations brought together financial regulators and economic policymakers from across the sub-region to assess progress toward meeting convergence benchmarks required for the launch of the unified currency.
Focus on Convergence Criteria
The Eco initiative is aimed at deepening economic integration among ECOWAS member states through the introduction of a common legal tender. The proposed currency is expected to ease cross-border trade, improve price transparency, and reduce transaction costs associated with multiple currency exchanges.
However, despite being under discussion for more than two decades, the project has faced repeated delays as member states struggle to meet strict macroeconomic convergence requirements.
Deliberations at the Monrovia meeting centered on evaluating countries’ performance against critical economic indicators. These include inflation rate ceilings, fiscal deficit limits relative to Gross Domestic Product (GDP), and adequacy of foreign reserves — all regarded as essential safeguards for maintaining stability within a potential monetary union.
Nigeria, which accounts for a significant share of West Africa’s total economic output, remains pivotal to the success of the Eco framework. Policymakers believe the country’s active participation is crucial for enhancing the credibility and operational viability of the proposed currency union.
Renewed Commitment Amid Domestic Reforms
The latest engagement underscores the Federal Government’s sustained commitment to regional financial integration, even as authorities continue implementing domestic reforms targeted at curbing inflation, improving foreign exchange liquidity, and strengthening fiscal discipline.
Economic analysts note that while the renewed political backing provides fresh momentum for the single currency agenda, structural disparities among member states remain a considerable hurdle.
Several West African economies continue to face currency volatility, mounting debt burdens, and persistent inflationary pressures — factors that could complicate the harmonization of monetary and fiscal policies across the region.
Broader Policy Coordination
Beyond discussions on currency unification, The Executive understands that the Committee of Governors meeting also examined policy coordination mechanisms, institutional preparedness, and strategies for aligning regulatory frameworks among participating nations.
The outcomes of the consultations are expected to shape subsequent technical work and policy adjustments aimed at accelerating convergence efforts.
Although no specific timeline has been announced for the launch of the Eco, the renewed discussions signal sustained diplomatic and economic momentum behind the initiative. If successfully implemented, the single currency could transform regional trade dynamics, deepen financial market development, and strengthen West Africa’s position in the global economic landscape — while potentially reducing dependence on external currencies for intra-regional transactions.
