Get this clear. A single currency to service multiple exchange rates, economies and society is doomed to fail.

Creating financial instruments without solidifying the politics is the same mistake EU is grappling with. Last time I checked, Nigeria doesn’t give a damn about ECOWAS, it shunned the ECOWAS fulling on releasing Dasuki, the infamous President Bubari mission of vengeance is nothing to ECOWAS.

Without been sentimental, what good will the single currency do without strong judicial and political might like the EU. Keep in mind that the EU isn’t strong enough and the experiment been in place for more than 10 years with Britain, the top financial and political leader rushing to leave the union, a divorce from EU so to speak.

There’s already freedom of movement somewhat between ECOWAS nations but you don’t see Nigerians heading anywhere after the Ghanian bothers, no offence to other ECOWAS nations but the economics don’t just match. The new currency will only increase movement from other ECOWAS nations to Nigeria and maybe Ghana.

The futuristic rise in population growth of Nigeria will definitely cause racial problems with outsiders. Nigeria is facing acute unemployment at the moment, with the potential new comers who will like to take advantage of the new currency to find a better life in Nigeria will heat up the economic soup and might implode into something the country is trying to avoid, public disobedience in mass.

In trade, ECOWAS nations have to come to an understanding, is our financial instrument going to be adjusted to serve all? Will a bag of rice that cost 1000ecos in Nigeria worth 1000ecos in Senegal? Will the absence of a unified border control not cause more stress on the countries? Will Nigeria allow the importation of banned goods from ECOWAS nations since we are boarder and currency streamlined?

Increase in population doesn’t favor Nigeria and that’s the sad truth. In my opinion, before the issuance of a common currency, the politics must be right and solidified. ECOWAS can’t guarantee the security of Nigeria, Nigeria guarantees the security of ECOWAS, how then can this work because make no mistake, Nigeria has the moral right to demand concessions from other ECOWAS nations due to the sacrifices it makes towards all members. The role played in The Gambia is still recent and fresh.

As a Nigeria, one thing is certain, what 1000ECO can purchase in Nigeria, it won’t purchase in Ghana. A cup of tea 1.5ECO in Nigeria will be 1.3ECO in Ghana, 1.1 in The Gambia. Regardless of the cheaper lifestyle for others, things will get more expensive on Nigeria again due to the population of immigrants. Economic liability immigrants if I may add.

As UK is hurrying to vacate the EU, Nigeria should be very careful of geopolitical gimmicks like the common ECOWAS currency, the ECO. Nigeria is like UK and Germany, the financial and economic power house of ECOWAS. The deal won’t favour Nigerians because of the high rate of corruption and leadership vacuum. Nigerian leaders have demonstrated times without number its willingness to screw the country for a few bucks.

My opinion, strengthen ECOWAS politically and judicially first before implementing any common currency. And I doubt any country will want to relax on their sovereignty, but unfortunately, for the currency to work, that’s what needs to be done.

The plan late Colonel Gaddafi of Libya had for Africa is a better, safer and secure currency backed by Gold, Gold Dinars, that is a great plan which I’ll discuss with you someday. It’s 1000% better than the proposed ECOWAS ECO currency that’s obviously going to be backed by sentiments.

Till the next blog post, cheers!

https://decoffeehublounge./2019/06/30/new-ecowas-eco-currency-doomed-to-fail/