By Peter Omopo
The Association of Small Business Owners of Nigeria (ASBON) has urged the Economic Community of West African States (ECOWAS) to sustain its push for the creation of a single regional currency, saying the initiative could transform trade and economic integration in West Africa.
The proposed currency, named Eco, is scheduled for launch in 2027, according to ECOWAS Commission President, Dr. Omar Touray, who confirmed during the Sahel Governance Forum in Banjul last month that significant progress had been made toward its adoption.
Speaking with Saturday PUNCH, ASBON President, Femi Egbesola, said the Eco would eliminate exchange rate barriers, lower transaction costs, boost intra-African trade, and ease cross-border investment.
“For Nigerian SMEs, it could lower transaction costs, improve price stability, and enhance our ability to compete regionally,” Egbesola stated.
However, he warned that the project required more than political declarations. Differences in inflation, weak fiscal discipline, and fragile financial institutions across African economies, he said, could undermine the success of the single currency.
“Without proper economic convergence and robust financial infrastructure, a single currency could create more challenges than it solves. Nigeria, as Africa’s largest economy, must also ensure that adopting such a currency does not undermine our monetary sovereignty or expose us to shocks from weaker economies,” he added.
Egbesola commended the renewed political will expressed by ECOWAS leadership but stressed that regional governments must first align fiscal policies, strengthen financial institutions, and build solid economic fundamentals before implementing the project.
Similarly, former Director-General of the Nigerian Institute of International Affairs, Prof. Bola Akinterinwa, highlighted the importance of a regional currency for reducing dependence on the dollar and other foreign currencies. He said such a move would facilitate seamless trade by removing tariff barriers within ECOWAS.
“Along the West African coast, Nigerian products are everywhere. You don’t even need much foreign exchange because the naira circulates widely in those countries. Nigeria accounts for about one-third of ECOWAS’ monetary contributions,” he noted.
Akinterinwa, however, pointed out that the withdrawal of Mali, Burkina Faso, and Niger from ECOWAS to form the Alliance of Sahel States posed fresh challenges to the project. While some believe the countries could return in the future, he warned that Nigeria must carefully weigh the risks and opportunities of adopting the single currency.
He also cautioned that while the Eco could stimulate regional trade, it might simultaneously fuel informal cross-border activities such as smuggling, which already thrives in West Africa.
