ECOWAS reaffirms plan to rollout ECO single currency in 2027

[Charles-Tim]

This was last month
https://punchng.com/ecowas-reaffirms-plan-to-rollout-eco-single-currency-in-2027/

I am not really presently reading Nigeria news, unlike before. But some Nigerians are saying Nigeria will immediately no longer be spending naira in 2027 after ECOWAS countries start spending eco.

Nigeria will continue to spend naira until it is no more in circulation if eco is rolled out is what that will happen.


But what do you think about this? There has been several times since decades ago that ECOWAS want a single currency called eco, but its launch has been shifted many times and now it is 2027.

[Hypnotizer]

I am not really presently reading Nigeria news, unlike before. But some Nigerians are saying Nigeria will immediately no longer be spending naira in 2027 after ECOWAS countries start spending eco.

I think what those people are saying is probably wrong, the Naira wouldn’t just disappear immediately they roll out the new sub-regional currency, the Naira is not that stable and ECOWAS have a criteria for the member states that can adopt the currency,  So Nigeria will have to meet that criteria by fixing the economy and paying back some of their debts before they can adopt the currency.

Nigeria will continue to spend naira until it is no more in circulation if eco is rolled out is what that will happen.

Based on the ECOWAS criteria for the countries, Nigeria can’t even adopt the currency at the initial rollout to start with, so there’s still a long way before all the countries in West Africa adopt it.

Primary Convergence Criteria

To qualify for the initial rollout phase of the Eco, member countries must satisfy four core macroeconomic targets:

1.Budget Deficit: Must be no more than 3% of Gross Domestic Product (GDP).
2.Inflation Rate: Annual average inflation must be kept at 5% or less (with a transitional ceiling framework up to 10%).
3.Central Bank Financing: Central bank funding of budget deficits must not exceed 10% of the previous year's tax revenues.
4.Foreign Reserves: Each country must maintain gross external reserves capable of covering at least 3 months of imports.

But what do you think about this? There has been several times since decades ago that ECOWAS want a single currency called eco, but its launch has been shifted many times and now it is 2027.

Nigeria is the biggest economy in the region, and if they can’t meet the requirements and criteria for adopting that currency, then I think they’ll still postpone it because I don’t think most of the West African economies are that mature to converge into a single regional currency.

[DubemIfedigbo001]

But some Nigerians are saying Nigeria will immediately no longer be spending naira in 2027 after ECOWAS countries start spending eco.

This is bullshit! The last monetary redesign in Nigeria of 2023, some of the old money is still in circulation and widely used until today, despite the phasing out being in process for 3 years now. Even if the new currency is implemented, it would take time for it to be fully integrated into Nigerian financial systems. Don't forget banks would still reconfigure their systems to match the eco standard, Then we go to printing and supply to the countries concerned. It is a lot of transitionary process and it is not as easy as it looks.

But what do you think about this? There has been several times since decades ago that ECOWAS want a single currency called eco, but its launch has been shifted many times and now it is 2027.

I still take it with a pinch of salt until they actualize it. Maybe it will save the country from the already worthless Naira.

[Karl_3000]

If Nigerians begin to spend the money, naira will not become invalidated immediately, that is what I also think and it will be what will happen.

Nigeria is the biggest economy in the region, and if they can’t meet the requirements and criteria for adopting that currency, then I think they’ll still postpone it because I don’t think most of the West African economies are that mature to converge into a single regional currency.

What are the criteria and requirements need from Nigeria? I see Nigeria to ne qualified than many West African countries right now.

[Hypnotizer]

Nigeria is the biggest economy in the region, and if they can’t meet the requirements and criteria for adopting that currency, then I think they’ll still postpone it because I don’t think most of the West African economies are that mature to converge into a single regional currency.

What are the criteria and requirements need from Nigeria? I see Nigeria to ne qualified than many West African countries right now.

I included the primary requirement for countries in my initial post, as you can see from there.. the inflation rate of that criteria is cap at the maximum of 10% and Nigeria’s Inflation rate is almost 15% right now, that’s  just one of the criteria.

Nigeria is at the center of this thing, maybe if Nigeria can’t meet up the criteria by next year then they might probably postpone the plan again because many nations haven’t met that requirement. Other West African countries that use CFA won’t join in the initial rollout and Guinea have exempted themselves from this plan.

[Mayor of ogba]

If ECOWAS succeed in rolling out Eco the new regional single currency to serve as a medium of exchange for West African countries in 2027 which will replace West African countries individuals currency, then Naira will no longer serve as a medium of exchange in Nigeria but it will take a while before Nigerians will stop spending Naira because the government will set a timeframe for Nigerians to exchange their Naira to Eco.

If the idea of making West African countries to use one currency (Eco) is achievable in 2027, I love the idea, because Eco will have value and it will make trading between West African countries easier as they don't need to change their individuals currency before carrying out a trade.

[Qhunman]

If ECOWAS succeed in rolling out Eco the new regional single currency to serve as a medium of exchange for West African countries in 2027 which will replace West African countries individuals currency, then Naira will no longer serve as a medium of exchange in Nigeria but it will take a while before Nigerians will stop spending Naira because the government will set a timeframe for Nigerians to exchange their Naira to Eco.

If the idea of making West African countries to use one currency (Eco) is achievable in 2027, I love the idea, because Eco will have value and it will make trading between West African countries easier as they don't need to change their individuals currency before carrying out a trade.

It will take a lot of processes and national debate by our leaders before it can be accepted in the country. Westerns power might fight against it to stop it from becoming a reality that's because if W.Africa adopt a single currency, in years to come,the dollar will be weaken as west Africa countries will stop using the dollar for their trades.
Furthermore, the reason why the US dollar is very strong today is because it's a universal currency which means it is acceptable in all countries. If West africa countries stop to use it, that will create a huge setback on the dollar. Some africa countries that is not in the west africa region may indicate their interest to adopt the use of the Eco and that will worsening things for the dollar.

[Roseline492]

If ECOWAS succeed in rolling out Eco the new regional single currency to serve as a medium of exchange for West African countries in 2027 which will replace West African countries individuals currency, then Naira will no longer serve as a medium of exchange in Nigeria but it will take a while before Nigerians will stop spending Naira because the government will set a timeframe for Nigerians to exchange their Naira to Eco.

If the idea of making West African countries to use one currency (Eco) is achievable in 2027, I love the idea, because Eco will have value and it will make trading between West African countries easier as they don't need to change their individuals currency before carrying out a trade.

Perhaps is time for some African countries to starts using one currency, I expected this to happen because all the countries under the ECOWAS has the same thing in common even Waec we normally write are only within this countries so definitely it wouldn't be a bad thing to have the same currency so that it will strengthen the relationship of this countries but however even if Nigeria doesn't want to abolish the use of naira they could still be using it and at the same time with central ECO currency as our local currency that would only be use within the country for exchange or transaction while ECO remain general.

[Rockson1]

If ECOWAS succeed in rolling out Eco the new regional single currency to serve as a medium of exchange for West African countries in 2027 which will replace West African countries individuals currency, then Naira will no longer serve as a medium of exchange in Nigeria but it will take a while before Nigerians will stop spending Naira because the government will set a timeframe for Nigerians to exchange their Naira to Eco.

If the idea of making West African countries to use one currency (Eco) is achievable in 2027, I love the idea, because Eco will have value and it will make trading between West African countries easier as they don't need to change their individuals currency before carrying out a trade.

How will people think that naira will just vanish in the thin air just because of the new development, if everything work according to the way it's been planned, naira will continue to be in existence for sometime before it will be totally faced out, it will be a gradual thing.
I think the good part of this, if it is been achieved is what you pointed at, when traveling to ECO countries for whatever reason, one won't have to bother to run exchange, but let's see where it goes from here, although this is time overdue, but I hope we won't experience any funny thing sha.

[Princess Leah]

 From my observation about the news, there’s no official statement from our government concerning the Naira being replaced or when it would stop circulating, so am not sure of the year 2027 cause the time frame is very short. As usual, there would be a delebration in the senate before an official statement would be aired out by the government for when the Naira is expected to stop circulating but for the mean time it would remain useful.

 Although ECOWAS plan is that the currency would launch in 2027, but they might extend it cause some countries especially Nigeria is yet to meet the criteria that enables them to be fully qualified to use it so since the country plays a big role in ECOWAS, they might extend it till when the criteria is met, this could be a blessing in disguise cause it could force our government to strengthen the economy more and reduce inflation so they'll be qualified to use ECO.

[Jegileman]

I am not really presently reading Nigeria news, unlike before. But some Nigerians are saying Nigeria will immediately no longer be spending naira in 2027 after ECOWAS countries start spending eco.

Nigeria is the biggest economy in the region, and if they can’t meet the requirements and criteria for adopting that currency, then I think they’ll still postpone it because I don’t think most of the West African economies are that mature to converge into a single regional currency.

If this should be the case, then I don’t think this will be coming to live in 2027. With Nigeria having a stronghold in the ECOWAS, I don’t think they’ll make an implementation that Nigeria will not be part of knowing how strong the country’s economy is as compared to other west African countries even though it is not well managed by our leaders. 2027 is just less than six months from now and with the rules for adoption, i doubt if  Nigeria can meet uo unless we see a miraculous things happen from now till then. I like the idea of using a single currency in West Africa and i hope it will serve for what is intended purpose was for.

[Curious T]

But what do you think about this? There has been several times since decades ago that ECOWAS want a single currency called eco, but its launch has been shifted many times and now it is 2027.

These people can never get their shit together. They are just a bunch of people who can't be called visionary leaders. The initiative of a single West African currency is good, but they would need to handle the economy properly for the currency to have value. If all 12 member countries of ECOWAS put their heads together, they can solve the insurgency problem and make their economies better. They need to start producing and exporting goods that other countries actually need instead of focusing on raw materials. This is one way to create demand for their currency. 12 countries that are productive using one currency would increase the demand for that currency and prevent inflation. But don't hold your breath. These people cannot do anything good. They're too myopic and selfish.