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By Chinwendu Obienyi
Nigeria is stepping up engagement toward the creation of a regional single currency, the Eco, following fresh consultations among West African monetary authorities, a recent update by the Central Bank of Nigeria (CBN) revealed on Monday night.
The apex bank via its X handle, confirmed this, stating that it’s Governor Olayemi Cardoso led the country’s delegation to the Committee of Governors meeting held in Monrovia, Liberia, where policymakers reviewed progress and renewed discussions on establishing the long-proposed Eco currency.
According to its statement, the Nigerian delegation also included Deputy Governor (Economic Policy) Muhammad Sani Abdullahi.
“The meeting formed part of statutory engagements jointly organized by the Economic Community of West African States alongside the West African Monetary Agency, the West African Monetary Institute, and the West African Institute for Financial and Economic Management. The consultations brought together financial regulators and economic policymakers across the sub-region to assess convergence benchmarks required for launching the unified currency”, the apex bank said.
The Eco project is designed to deepen economic integration among ECOWAS member states by providing a common legal tender that would facilitate cross-border trade, enhance price transparency and reduce transaction costs tied to multiple currency exchanges. The initiative has been under discussion for over two decades but has experienced repeated postponements as member countries struggle to meet strict macroeconomic convergence criteria.
According to details shared by the apex bank via X, deliberations at the meeting focused on evaluating member states’ performance against key economic indicators. These include inflation rate ceilings, fiscal deficit thresholds relative to gross domestic product, and foreign reserve adequacy, all considered critical safeguards for ensuring stability within a potential monetary union.
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Nigeria, which accounts for a significant share of West Africa’s economic output, remains central to the success of the proposed currency framework.
Policymakers view the country’s participation as crucial to strengthening the credibility and operational viability of the Eco. The latest engagement underscores the FG’s continued commitment to regional financial integration, even as authorities focus on domestic reforms aimed at stabilizing inflation, boosting foreign exchange liquidity and strengthening fiscal discipline.
Commenting on the development, economists note that while progress toward the single currency has gained renewed political backing, structural disparities among member states remain a major challenge.
Several West African economies continue to grapple with currency volatility, rising debt burdens and persistent inflationary pressures, factors that could complicate harmonization of monetary policies across the region.
Daily Sun understands that beyond currency unification, the Committee of Governors meeting also explored policy coordination mechanisms, institutional readiness and strategies to align regulatory frameworks across participating nations. The consultations are expected to guide subsequent technical work and policy adjustments required to accelerate convergence efforts.
Although no definitive timeline has been announced for the Eco’s launch, the renewed discussions signal sustained diplomatic and economic momentum behind the initiative. If successfully implemented, the single currency could reshape regional trade flows, enhance financial market development and strengthen West Africa’s economic positioning within the global marketplace, while potentially reducing reliance on external currencies for intra-regional commerce.
