By Mark Longyen
The Economic Community of West African States (ECOWAS), will officially roll out its own common currency, the ECO, in 2027.
The ECO is expected to serve as a unified medium of exchange, facilitating trade and economic integration across West Africa.
Mohammed Manga, Director of Information and Public Relations at Nigeria’s Ministry of Finance, disclosed this during the 11th ECOWAS Convergence Council meeting in Abuja.
The meeting, attended by Ministers of Finance and Central Bank Governors from the subregion, focused on strategies to accelerate the ECO’s implementation.
The ECO is a proposed single currency for the Economic Community of West African States (ECOWAS), designed to enhance economic integration and facilitate trade among its member countries.
It also aims to enhance financial stability and economic cooperation within the subregion.
The name was officially adopted on June 29, 2019, by ECOWAS leaders.
Originally set for 2020, the ECO’s official unveiling has been delayed by economic disparities, fiscal challenges, and political disagreements.
Its rollout was planned in two phases.
First, member states of the West African Monetary Zone (WAMZ)—comprising Gambia, Ghana, Guinea, Liberia, Nigeria, and Sierra Leone—were to adopt the ECO.
In the second phase, the ECO would merge with the CFA franc, the currency currently used by the eight French-speaking West African nations within the West African Economic and Monetary Union (UEMOA)
This transition was designed to grant UEMOA countries full fiscal and monetary independence from France while fostering deeper regional economic integration within ECOWAS.
In June 2021, the Authority of Heads of State and Government of ECOWAS adopted a roadmap for ECO’s official takeoff by 2027.
This commitment was reaffirmed in Sept. 2023, as the bloc reiterated its determination to introduce the currency within the planned timeline.
The currency is expected to unify the region’s payment system, promote price stability, attract foreign direct investment (FDI) by creating a more stable economic bloc, and simplify cross-border transactions for businesses.
The ECO currency project has faced significant challenges since its early development stages.
Key obstacles include the withdrawal of the Alliance of Sahel States (Burkina Faso, Mali, and Niger), economic downturns in Nigeria and Ghana
Nigeria and Ghana are currently experiencing double-digit inflation and record-high public debt—and broader regional instability.
In Jan. 2024, Burkina Faso, Mali, and Niger announced their withdrawal from ECOWAS in response to sanctions imposed on them following a series of military coups in their countries.
The withdrawal process, which takes a year, was formally ratified by ECOWAS leaders in Jan. 2025.
Despite these setbacks, some analysts see their exit as an opportunity to streamline the implementation of the ECO, and potentially reduce political and economic hurdles that have previously delayed progress.
According to Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, achieving the subregion’s single currency requires the strengthening of monetary and fiscal discipline.
He highlighted key challenges hindering progress toward full monetary convergence, including security concerns, inflation, and global economic disruptions.
“This is our opportunity to shape the future of our region. We must work together to drive economic stability, growth, and prosperity,” Edun stated.
He also emphasized ongoing engagements with South Africa’s G20 presidency, viewing it as a strategic opportunity to align West Africa’s economic agenda with broader African economic objectives.
