Olowofeso: ECOWAS Single Currency Initiative Imperiled by Economic Downturn

James Emejo in Abuja

Director General, West African Monetary Zone (WAMZ), Dr. Olorunsola Olowofeso, has declared that the prospects for the ECOWAS Single Currency by 2027 were no longer realisable within the timeframe following the inability of all the WAMZ member states to meet all convergence criteria.

He said it was unlikely that any of the member states would satisfy all four primary convergence criteria on a sustainable basis for the remaining three consecutive years (2024-2026).

He noted that the quest for a single currency by the West African Monetary Zones (WAMZ) would take much longer time to achieve as the convergence indicators have declined significantly.

Speaking at the 48th meeting of the Committee of Governors of the Central Banks of the Member States of the West African Monetary Zone, in Abuja over the weekend, he said, “The assessment of Member States’ performance reveals that, as of the end of June 2023, all WAMZ Member States failed to meet all the four primary convergence criteria. The zone’s performance score declined to 29.2 percent, compared to 41.7 percent during the same period in 2022.”

He said, “The medium-term projections on macroeconomic convergence, as indicated by the multi-year national macroeconomic convergence and stability programmes of the Member States, suggest that none of the WAMZ Member States will meet all the four primary convergence criteria on a sustainable basis for the remaining three consecutive years (2024-2026) of the convergence phase of the ECOWAS Single Currency Roadmap (2021-2027).”

Nonetheless, Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun said Nigeria remained committed to achieving the objectives of WAMZ.

He said, “What we all seek to achieve in terms of the regional economic integration may be difficult but not impossible. I am sure we have the wherewithal and resilience to realize the ambition.

“We just need to be very smart in our planning and prioritization, as well as decisiveness in our actions. We must, as a bloc, work together to strengthen and improve the economies of the zone.”

Edun said, “I have been briefed about the proceedings and programmes of the WAMZ and noted with admiration the remarkable roles and achievements of the West African Monetary Institute (WAMI) in the regional integration process.”