The Association of Small Business Owners of Nigeria has called on the Economic Community of West African States to sustain its commitment toward the actualisation of a single currency for the sub-region.
According to ASBON, the initiative holds significant promise for trade and economic integration.
The new ECOWAS currency, dubbed Eco, is scheduled for launch in 2027, according to the President of the ECOWAS Commission, Dr. Omar Touray.
Touray had during a panel session at the maiden Sahel Governance Forum in Banjul in July, confirmed that the pathway to the launch of the single currency had already been achieved.
Speaking with Saturday PUNCH, ASBON President, Femi Egbesola, said the proposal, if well implemented, would eliminate exchange rate barriers, boost intra-African trade and ease cross-border investment.
Egbesola, however, warned that the initiative required more than political declarations, noting that wide variations in inflation levels, fiscal discipline and institutional strength across African economies posed a major challenge.
“For Nigerian SMEs, it could lower transaction costs, improve price stability, and enhance our ability to compete regionally.
“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 commended the political will recently expressed by the ECOWAS President at the Sahel Government Forum in Gambia but stressed that the sub-region must first align fiscal policies, strengthen regional financial institutions and ensure the project rests on solid economic fundamentals.
Similarly, former Director-General of the Nigerian Institute of International Affairs, Prof Bola Akinterinwa, emphasised the need for a continental currency to promote intra-African trade and reduce dependence on dollar and other foreign currencies.
He explained that such a currency would remove tariff barriers within ECOWAS and facilitate seamless trade among member states, adding that Nigeria already enjoyed strong trading presence across West Africa.
“Along the West African coast, Nigerian products are everywhere. You don’t even need much foreign exchange because Naira circulates widely in those countries. Nigeria accounts for about one-third of ECOWAS’ monetary contributions,” Akinterinwa said in an interview with Saturday PUNCH.
He, however, noted that the exit of Mali, Burkina Faso and Niger from ECOWAS to form the Alliance of Sahel States had created fresh challenges for the bloc.
While some stakeholders believe the countries may return in the future, he stressed that Nigeria must weigh the opportunities and risks carefully.
According to him, the adoption of a single currency would facilitate regional trade but could also heighten informal activities such as smuggling, which already thrives in West Africa.
