Nigeria is intensifying efforts toward the creation of a single West African currency, the Eco, following new consultations among regional monetary authorities.
The Central Bank of Nigeria (CBN) confirmed late Monday that Governor Olayemi Cardoso led the country’s delegation to a Committee of Governors meeting in Monrovia, Liberia.
The session brought together policymakers from across the Economic Community of West African States (ECOWAS) to review progress and renew discussions on the long-delayed Eco project.
Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, joined Cardoso at the meeting.
According to the CBN, the consultations were jointly organized by ECOWAS, the West African Monetary Agency, the West African Monetary Institute, and the West African Institute for Financial and Economic Management.
The Eco initiative, first proposed more than two decades ago, aims to deepen regional integration by introducing a common legal tender.
A single currency is expected to simplify cross-border trade, reduce transaction costs, and enhance price transparency.
But repeated delays have plagued the project, largely because member states have struggled to meet strict macroeconomic benchmarks.
Discussions in Monrovia focused on inflation ceilings, fiscal deficit thresholds relative to GDP, and foreign reserve adequacy — all considered vital safeguards for a stable monetary union.
Nigeria’s Central Role
Nigeria, which accounts for the largest share of West Africa’s economic output, is seen as pivotal to the Eco’s credibility.
Policymakers argue that without Nigeria’s participation, the single currency would lack the scale and stability needed to succeed.
The CBN emphasized that Nigeria’s involvement reflects its commitment to regional financial integration, even as the government pursues domestic reforms to stabilize inflation, strengthen fiscal discipline, and boost foreign exchange liquidity.
However, structural disparities among ECOWAS members remain a major obstacle.
Several countries continue to face currency volatility, rising debt burdens, and persistent inflation. These conditions could complicate efforts to harmonise monetary policies across the region.
Beyond currency unification, the Committee of Governors also examined institutional readiness, policy coordination, and regulatory alignment.
The consultations should guide technical work and policy adjustments needed to accelerate convergence.
Despite renewed momentum, no timeline has been set for the Eco’s introduction. Analysts note that while political backing has strengthened, economic realities may still delay implementation.
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