The Economic Community of West African States (ECOWAS) is set to introduce the Eco, a unified currency designed to foster trade and economic integration among its 15 member countries. The anticipated benefits of the Eco were underscored by Mohammed Manga, Director of Information and Public Relations at Nigeria’s Ministry of Finance, during the 11th ECOWAS Convergence Council meeting in Abuja. This gathering, which brought together finance ministers and central bank governors from the region, focused on strategies to expedite the Eco’s implementation, aiming to enhance financial stability and bolster economic cooperation across West Africa.
Understanding the Eco
The Eco represents a significant step towards a more integrated West African economy. Approved by ECOWAS leaders on 29 June 2019, the currency aims to simplify trade and create a cohesive economic environment among member states. Initially scheduled for launch in 2020, the Eco’s rollout has been delayed due to economic disparities, fiscal challenges, and political disagreements among member states.
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The rollout is planned in two phases. The first phase will see the West African Monetary Zone (WAMZ)—comprising The Gambia, Ghana, Guinea, Liberia, Nigeria, and Sierra Leone—adopt the Eco. The second phase involves merging the Eco with the CFA franc, currently used by the eight French-speaking nations within the West African Economic and Monetary Union (UEMOA). This transition is intended to grant UEMOA countries full fiscal and monetary independence from France while promoting deeper regional economic integration.
In June 2021, ECOWAS Heads of State reaffirmed their commitment to launching the common currency by 2027. This timeline was reiterated in September 2023 as part of broader efforts to unify the region’s payment system, attract foreign direct investment (FDI), promote price stability, and simplify cross-border transactions.
Challenges to the Eco’s Launch
Since its inception, the Eco project has faced numerous obstacles. One of the most significant is the recent withdrawal of the Alliance of Sahel States—comprising Burkina Faso, Mali, and Niger—from ECOWAS following sanctions imposed in response to military coups. This withdrawal, ratified by the ECOWAS Council in January 2025, adds a layer of complexity to the project. However, some analysts suggest that their departure may expedite the Eco’s implementation by removing certain political and economic hurdles that have historically impeded progress.
Economic difficulties in leading nations such as Nigeria and Ghana, characterised by double-digit inflation and soaring public debt, further complicate the situation. According to Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, achieving the Eco currency depends on enhanced monetary and fiscal discipline across all member states. He emphasised that security concerns, inflationary pressures, and global economic disruptions remain critical challenges that must be addressed as part of the roadmap to economic convergence.
A Strategic Opportunity for Regional Stability
Despite these setbacks, ECOWAS leaders view this moment as an opportunity to shape the region’s economic future. The Eco is expected not only to unify the economic landscape of West Africa but also to instil a sense of stability that could attract more foreign investment. Enhanced cooperation through fiscal discipline and collective decision-making could elevate the region’s economic standing on the global stage, making it more resilient to external shocks and internal disruptions.
Minister Edun also highlighted the importance of ongoing engagements with international partners, notably pointing to South Africa’s G20 presidency as a strategic opportunity to align West Africa’s economic agenda with broader African objectives. This could help catalyse further support and collaboration needed for the successful launch of the Eco.
As West Africa navigates the complexities of launching the Eco currency, it is clear that the journey towards economic integration is fraught with challenges but also rich with possibilities. The successful implementation of the Eco could mark a revolutionary shift in how trade and finance operate in the region, fostering greater unity and resilience in an increasingly interconnected world. To realise the full potential of their shared economic future, ECOWAS member states must work collaboratively and remain committed to their long-term vision.
