The Economic Community of West African States (ECOWAS) has been working toward introducing a single currency, the Eco, to improve trade and economic stability in the region.

However, the plan has faced multiple delays due to economic challenges. Nigeria’s Finance Minister, Wale Edun, recently explained that inflation and global economic disruptions are key obstacles preventing progress.

Speaking at the 11th ECOWAS Convergence Council meeting in Abuja, Edun emphasized that security issues, rising inflation, and the unstable global economy have slowed down efforts to launch the Eco. Initially, ECOWAS planned to introduce the currency in January 2020, but due to economic uncertainties, the launch was postponed to 2027.

For the Eco currency to work, member states must meet specific economic criteria, including low inflation, stable exchange rates, and strong public finances. However, ongoing financial instability across the region has made it difficult for countries to achieve these target.

Despite these setbacks, Nigeria has been implementing significant economic reforms to promote stability and growth. Edun highlighted several key measures:

• Foreign exchange market reforms to stabilize the Naira.
• Improved tax policies to boost government revenue.
• Removal of petrol subsidies to reduce unnecessary spending.

These policies have helped Nigeria achieve a 3.4% GDP growth rate in 2024 and improve overall financial sustainability.

Edun stressed that ECOWAS must work together to overcome economic challenges. He also mentioned West Africa’s involvement in global financial discussions, particularly its engagement with South Africa’s G20 leadership, to align the region’s economic strategies with Africa’s broader development goals.

The Nigerian Ministry of Finance believes that the introduction of the Eco currency will be a historic achievement for West Africa. It will:

• Strengthen economic integration among ECOWAS nations.
• Enhance trade and investment within the region.
• Position West Africa as a stronger player in the global economy.

However, inflation, security concerns, and economic disruptions remain significant hurdles. While the 2027 launch date is still the target, achieving monetary convergence will require stronger policies, better coordination, and economic discipline across the region.

The dream of a single currency for West Africa is still alive. But for it to become a reality, ECOWAS must address key challenges and ensure sustainable economic growth in the coming years.