I'm no economist but I predict a tougher economic clime for Nigeria before the end of the year if ECOWAS members decide to fully implement the use of ECO as a single currency by 2020.

Technically, naira will be phased out and the CBN will lose some of it's leverages. Despite it's obvious advantages, there are challenges that aren't yet addressed that will make things more tougher. Foreign investments night stall due to uncertainties. Forex traders will definitely hoard dollar until stability is achieved thereby putting pressure on ECO. Currency exchange economy at borders will shrink for obvious reasons.

More importantly is how they hope to align the economic realities of individual countries. Nigeria's economy accounts for over 75% GDP of member states. For example, how do we equilibrate overtime, the economic prowess of Togo with a GDP same as zamfara (the 9th poorest state in Nigeria by GDP) to Nigeria?
This disparity might result into a parasitic relationship where some countries benefit and other managing the burden of growth and development of the bloc contribution. This was one of the major argument that culminated in BREXIT.

Hopefully, the will release more details that will clear doubts and uncertainties before 2020. My good guess is that it won't happen. It will be postponed. I do hope I'm wrong cos holistically, it's a big step in the right direction.

EU just donated €40b to the signatories of the African free trade agreement (ACFTA). The exploitation has begun. China was a major player in bringing the countries together. The folks are turning focus to Africa. Where is our leverage?

Nigeria hasn't signed yet but I'm sure PMB will put pen on paper in the coming months.


Written by:
Odumuwagun Oluwatoyin

cc: lalasticlala , mynd44

Economists in the house, let's have your contributions.

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No good ever cm out of Africa.

2019elections:
Economists in the house, let's have your contributions.

I'll just speak for Nigeria. I haven't looked into the issue fully for regional block. Nigeria wont agree to it. The single currency would effect our abilty to maintain multiple exhange rates and we'd lose ability to effect monetary policy. Nigeria loves having that freedom and wont part with like UK cant part with pound.

Blue3k:


I'll just speak for Nigeria. I haven't looked into the issue fully for regional block. Nigeria wont agree to it. The single currency would effect our abilty to maintain multiple exhange rates and we'd lose ability to effect monetary policy. Nigeria loves having that freedom and wont part with like UK cant part with pound.

True tho. Issues like this won't make front page for proper discussion since it's not Ned nwoko, coza or slapping machine.