By Adedapo Adesanya

Nigeria could swap the Naira for the single currency being proposed by the Economic Community of West African States (ECOWAS) if good monetary and fiscal policies are put in place, Business Post analysis shows.

Originally intended to be launched in 2000, the ECO, which is the currency being considered, has been postponed multiple times; and the newest target date set is 2020.

With this, it means six member countries, including Nigeria, Liberia, Sierra-Leone, and Ghana; could swap their currencies for the ECO. ECOWAS countries like Benin Republic, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo currently jointly use the CFA franc.

The 15-member group had announced at the end of an ECOWAS summit in Abuja in July 2019 that part of its plans was to redress the region’s economic problems. It was stated at the gathering that the adoption of ECO could set things in motion.
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Mahamadou Issoufou, the president of Niger Republic, who also doubles as the ECOWAS chairman, explained that there was a real firm political will to increase efforts ahead of the January 2020 deadline.

“We are of the view that countries that are ready will launch the single currency and countries; that are not ready will join the programme as they comply with all six convergence criteria,” Issoufou said at the past ECOWAS meeting.

However, the African Development Bank Group (AfDB) in a report said; “The 2020 deadline for the single currency will most like be postponed again unless West African countries can align with their monetary and fiscal policies.”
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But ECOWAS has since pushed ahead as it stated that it will be working with the West African Monetary Agency (WAMA), the West Africa Monetary Institute (WAMI), and central banks of West African nations to speed up the implementation of a new road map for the proposed single trade currency.

On Nigeria’s part, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, recently noted that the proposed date for the commencement of a single-currency regime for West Africa may not be realised as many countries within the region have yet to meet the criteria for the monetary union.

She said only Togo had met criteria to adopt the ECO, and with only the country achieving this, it would be difficult to operate the single currency regime by next year, which is just few days away.
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To be able to adopt the single currency, key demands for entry are for countries to have a deficit of less than 3 percent of gross domestic product (GDP), inflation of 10 percent or under and debts worth less than 70 percent of GDP, but Nigeria’s GDP stands at less than 2.3 percent (Q3 ’19) while its inflation as at November 2019 was 11.85 percent.

However, despite the increase in the Nigeria’s debt profile, the country’s debt-to-Gross Domestic Product (GDP) ratio is still well below the average for sub-Saharan Africa and Africa as a whole as the International Monetary Fund (IMF) noted last month.

https://businesspost.ng/economy/what-can-make-nigeria-abandon-naira-for-ecowas-currency/

for abandoning your religion for another mam own, you have not learn your lesson. next you want to abandon your currency.
with the high debt, we will soon sell Nigeria

It's not just about abandoning the Naira but about having the best economy that others can tap into

They would need to cancel border closure

Not possible....for two reasons....1) there are some economic criteria which has to be fulfilled before such a swap is considered and currently of all the African countries connected to the eco only Ghana has fulfilled the criteria. 2) you have to consider the debts that will be shelved unto the currency and living Nigeria out of it when you consider the debts of countries like the mali I'm sure even you would not want to be tangled up in the eco currency. Best we can do is keep the naira and have a favourable exchange rate to the eco anything short of that would be a disaster.

mumumugu:
for abandoning your religion for another mam own, you have not learn your lesson. next you want to abandon your currency.
with the high debt, we will soon sell Nigeria

Lol....you think they care what currency you use....considering the fact they already own and control the cbn..if you dont believe me Google it the cbn is a private company and not controlled by the government.....even america doesn't control their central bank.

It will be very nice and beneficial to all the ECOWAS countries to adopt that single currency.

leokid866:
Not possible....for two reasons....1) there are some economic criteria which has to be fulfilled before such a swap is considered and currently of all the African countries connected to the eco only Ghana has fulfilled the criteria. 2) you have to consider the debts that will be shelved unto the currency and living Nigeria out of it when you consider the debts of countries like the Dr Congo I'm sure even you would not want to be tangled up in the eco currency. Best we can do is keep the naira and have a favourable exchange rate to the eco anything short of that would be a disaster.

Dr Congo is not in west Africa now. Please correct me if am wrong. I thought is in central Africa.

DonJayrome:
It will be very nice and beneficial to all the ECOWAS countries to adopt that single currency.

Have all the west African countries fulfilled the criteria?

I second the above writer's point of view of keeping the naira and having a favourable exchange rate with the Eco currency.
(@leokidd866)
There is no need joining the single currency knowing our capability as the biggest country in Africa with enormous potential towards businesses.

It would be useless to join, after few years, we start clamouring for exit as being done by United Kingdom presently.

BabaOwen:
Dr Congo is not in west Africa now. Please correct me if am wrong. I thought is in central Africa.

Sorry.....the thought of poor African countries dragged them into my mind....but considered been tied up in Malis debt.

Ecowas currency wont be good for Nigeria in particular..

Border closures already indicated that.. They should suspend the proposal for now as we are not rrady

leokid866:
Not possible....for two reasons....1) there are some economic criteria which has to be fulfilled before such a swap is considered and currently of all the African countries connected to the eco only Ghana has fulfilled the criteria. 2) you have to consider the debts that will be shelved unto the currency and living Nigeria out of it when you consider the debts of countries like the mali I'm sure even you would not want to be tangled up in the eco currency. Best we can do is keep the naira and have a favourable exchange rate to the eco anything short of that would be a disaster.

You're saying Ghana only has met the criteria while the minister of finance is saying Togo.. please read again

leokid866:

Lol....you think they care what currency you use....considering the fact they already own and control the cbn..if you dont believe me Google it the cbn is a private company and not controlled by the government.....even america doesn't control their central bank.

Many central banks are private institutions. The Americans call theirs the Fed. Our CB may have private input (I haven't read about it) but the government controls most of it.

GreyLaw:


Many central banks are private institutions. The Americans call theirs the Fed. Our CB may have private input (I haven't read about it) but the government controls most of it.

No they dont.....their allowed to select the governor and employ some other key positions but don't be deceived.....that place is as private as could be.

murphyibiam15:

You're saying Ghana only has met the criteria while the minister of finance is saying Togo.. please read again

I don't know if Togo has made the criteria now but the last time I checked it was only Ghana out of all the eco countries

leokid866:
No they dont.....their allowed to select the governor and employ some other key positions but don't be deceived.....that place is as private as could be.

Thanks for the information. I will read up in it.

Unity of Nations.
Remember, Nigeria plays a leading role.

Eco has been kidnapped by france and her francophone colonies, spareheaded by cote divore

It is no longer possible.

France has hijacked it.

We can join but it would be like joining the francophone countries under the French colonial yoke.

CSTR2:
It is no longer possible.

France has hijacked it.

We can join but it would be like joining the francophone countries under the French colonial yoke.

danieldinho:
Eco has been kidnapped by france and her francophone colonies, spareheaded by cote divore

Lol this shows Nigeria's a big failure by your own logic. Only Francophone togo met the critea over a decade after initial talks. Then boogie man france stopped everyone else in their tracks allegedly. This what happens when leaders just meet to shoot the breeze.

PS: if Nigeria or some regional power isnt ready to lead why complain about France?

On April 20, 2000, in Accra, Ghana, the leaders of six West African countries declared their intention to proceed to monetary union among the non-CFA2 franc countries of the region by January 2003, as a first step toward a wider monetary union including all the ECOWAS countries in 2004.
Source

The meeting was attended by three heads of state, Presidents Olusegun Obasanjo of Nigeria, Jerry Rawlings of Ghana, and Lansana Conté of Guinea, as well as representatives from Liberia, Sierra Leone, and The Gambia. Cape Verde, the remaining non-CFA ECOWAS member, has a currency peg to the euro with the support of Portugal, and was not a signatory of the "Accra Declaration on a Second Monetary Zone."

Source

Hmm

mumumugu:
for abandoning your religion for another mam own, you have not learn your lesson. next you want to abandon your currency.
with the high debt, we will soon sell Nigeria

you are not making sense at all.