Nigeria Calls for Fiscal Discipline to Revive ECOWAS Monetary Convergence
By Patience Ikpeme
Nigeria has urged fellow West African nations to embrace stringent monetary and fiscal discipline, emphasizing that prevailing security challenges, persistent inflation, and global economic disruptions have significantly impeded progress towards monetary convergence within the sub-region.
The call was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during his chairmanship of the 11th ECOWAS Convergence Council meeting held in Abuja on Monday.
The crucial gathering convened Ministers of Finance and Central Bank Governors from across the Economic Community of West African States (ECOWAS), aiming to reinvigorate discussions surrounding the launch of the Eco currency by 2027. This initiative is pivotal for fostering regional economic integration and stability.
Mr Edun highlighted Nigeria’s commitment to economic reform, showcasing the government’s recent strides in foreign exchange market liberalization, tax policy enhancements, and the removal of fuel subsidies. He asserted that these measures have contributed to a notable 3.4% GDP growth in 2024, while simultaneously bolstering fiscal sustainability.
“This is our opportunity to shape the future of our region. We must work together to drive economic stability, growth, and prosperity,” Edun stated, underscoring the necessity for collective action.
Beyond domestic policy adjustments, the Minister emphasized the imperative of enhanced regional coordination and the pivotal role of ECOWAS in shaping global financial decision-making. He pointed to ongoing engagements with South Africa’s G20 presidency as a strategic opportunity to align West Africa’s economic priorities with broader African development goals.
The ECOWAS, a regional economic union comprising 16 West African countries, is dedicated to promoting economic integration, cooperation, and sustainable development throughout the region. The envisioned launch of the Eco currency is poised to be a landmark achievement, fostering deeper economic ties among member states and signaling the region’s commitment to global economic stability.
The successful implementation of the Eco currency is anticipated to solidify West Africa’s position as a significant player in the global economy, driving growth, innovation, and creating opportunities for future generations. However, the path to achieving this ambitious goal necessitates unwavering commitment to fiscal discipline and regional collaboration.
The meeting in Abuja served as a critical platform for addressing the challenges hindering monetary convergence and strategizing on actionable steps to ensure the timely launch of the Eco currency. Participants deliberated on harmonizing fiscal policies, strengthening institutional frameworks, and enhancing regional surveillance mechanisms.
