Nigeria cautions against hurrying towards a monetary union in West Africa

Nigerian President, Muhammadu Buhari, has warned leaders of the Economic Community of West African States that caution must be taken in the sub-region’s push to have and use a single currency by 2020.

He made the call on Tuesday in Niamey, the capital of Republic of Niger, during the 4th Meeting of the Presidential Task Force on ECOWAS single currency project.

In a statement by the president’s Special Adviser on Media and Publicity, Mr. Femi Adesina, Buhari made reference to the challenges faced by the European Union which has achieved the same project as the reason caution must be exercised in pushing for the goal.

He said, “Nigeria advises that we proceed cautiously with the integration agenda, taking into consideration the above concerns and the lessons currently unfolding in the European Union.

“To that end, Nigeria will caution against any position that pushes for a fast-track approach to monetary union, while neglecting fundamentals and other pertinent issues.”

He said issues as diverse and uncertain as macro-economic fundamentals of many countries, unrealistic inflation targeting based on flexible exchange rate regime and inconsistency with the African Monetary Co-operation Programme, will be some of the obstacles the project will contend with.

He further noted that domestic issues relating to member countries’ constitutions and dependence on aids will continue to challenge the framework for implementing the single currency in the sub-region

“Although the ECOWAS Commission has anchored its pursuit of the new impetus to monetary integration on the information presented to the Heads of State which were the basis for their recommendations, we are concerned that we have not properly articulated and analysed a comprehensive picture of the state of preparedness of individual countries for monetary integration in ECOWAS by 2020.

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“In previous meetings, we had specifically raised observations on the state of preparedness of the member states, the credibility of the union if anchored on watered down criteria, and the continuing disparities between macroeconomic conditions in ECOWAS countries, amongst others. And I would like to reiterate this concerns,” he said.

According to President Buhari, the conditions that made Nigeria withdraw from the process in the past are yet to improve.

 

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