Nigeria to Lead West African Monetary Zone Towards Single Currency
By Patience Ikpeme
Nigeria’s Finance Minister, Wale Edun, was recently elected Chair of the West African Monetary Zone (WAMZ) Convergence Council.
This comes as West African nations push towards a single currency, similar to the Euro.
However, member countries, including Nigeria, are facing slow economic growth due to global factors and are not currently meeting the convergence criteria for a single currency.
While Nigeria’s economy is projected to grow, the Finance Minister warned this growth may not significantly improve living standards for most Nigerians. He highlighted structural challenges and inequalities within the economy that prevent economic growth from translating into better lives for the average Nigerian. The government’s goal is for economic growth to lead to real improvements like better jobs and reduced poverty.
Despite Nigeria’s leadership role, a recent review by the Committee of Governors of the Central Bank of West Africa found that no member country is currently meeting the convergence criteria for a single currency. These criteria include controlling inflation rates, fiscal deficits, public debt levels, and exchange rate stability among member countries.
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Other challenges include: slow economic growth; unstable food production and reliance on imports; rising inflation; currency exchange rate issues.
The WAMZ Convergence Council remains committed to achieving its goals. Nigeria proposes member states address these challenges through smart planning, collaboration, and decisive action. Sharing successful economic strategies from different countries is seen as a key approach.
The report by the Central Bank Governors urged policymakers to find lasting solutions instead of quick fixes. By working together and addressing common challenges, the countries of West Africa can achieve greater economic stability and prosperity for all their citizens.
