Finance ministers and central bank governors from the Economic Community of West African States (ECOWAS) convened in Abuja this week to reignite efforts toward launching the long-delayed ECO single currency, aiming to strengthen regional integration and stabilize economies battered by global headwinds.
At the 11th Session of the ECOWAS Convergence Council on March 3, 2025, Nigeria’s Coordinating Minister for the Economy, Adebayo Olawale Edun, underscored the urgency of adopting the ECO to bolster trade, mitigate inflation, and improve livelihoods across the bloc. “A unified currency is not just an economic tool—it’s a lifeline for regional solidarity,” Edun stated, citing mounting pressures from trade tensions, climate crises, and uneven post-pandemic recovery.
The meeting reviewed progress on the ECO roadmap, including a draft regulation on public debt management and a harmonized framework for public accounting. Delegates also analyzed findings from the Technical Committee on Macroeconomic Policies, which highlighted sluggish compliance with fiscal targets among some member states.
ECOWAS Commission President Dr. Omar Alieu Touray acknowledged the bloc’s structural hurdles, noting the complexity of aligning monetary policies across 15 nations, including eight Francophone countries using the West African CFA Franc. “Our diversity demands patience, but our people demand action,” Touray said, referencing the region’s mix of unitary states, federal systems, and pre-existing monetary unions. He called for “decisive reforms” to streamline governance and accelerate convergence criteria ahead of the bloc’s 50th anniversary in May 2025.
Edun urged leveraging South Africa’s 2025 G20 presidency to amplify West Africa’s priorities, such as debt relief and climate financing. “Unity is our bargaining power,” he emphasized, advocating for coordinated advocacy on global stages to tackle inequality and resource mismanagement.
Challenges:
- Global Inflation: Persistent price surges have strained public finances, with eight ECOWAS nations exceeding the bloc’s 3% deficit-to-GDP threshold in 2024.
- Structural Divergence: Varied economic policies and exchange rate regimes complicate alignment.
- Debt Pressures: Average public debt in the region climbed to 65% of GDP in 2024, raising default risks.
While no timeline for the ECO’s launch was announced, Touray reaffirmed technical support for members to meet macroeconomic benchmarks. The move aligns with broader African Union goals to reduce dollar dependency and enhance intracontinental trade under the African Continental Free Trade Area (AfCFTA).
First proposed in 2003, the ECO has faced repeated delays due to political instability, divergent fiscal policies, and logistical hurdles. Recent exits by Mali, Burkina Faso, and Niger from ECOWAS further complicate integration efforts.
As the meeting closed, delegates signaled cautious optimism. “The ECO isn’t just currency—it’s a pact for our future,” said one attendee. “Every delay deepens the cost, but every step forward renews hope.”
