ECOWAS decides about the single currency program.

Abuja, Nigeria: The West African Monetary Zones (WAMZ) initiative for a unified currency across its member states faces significant challenges, pushing the realization timeline further back than initially expected, revealed Olorunsola Olofeso, Director-General of the West African Monetary Institute (WAMI), during the 51st Convergence Council meeting in Abuja.

Despite years of efforts towards economic integration, the decline in key convergence indicators - essential benchmarks for the monetary union - underscores the daunting task ahead. The aspiration to enhance economic stability, boost trade, and simplify transactions in the region is hindered by divergent economic policies, inflation rates, and fiscal deficits among the countries.

At the recent Abuja meeting, finance ministers, central bank governors, and stakeholders evaluated the progress, or lack thereof, with a performance score of just 29.2% as of June 2023, a drop from 41.7% in the previous year. "All WAMZ Member States failed to meet the four primary convergence criteria," Dr. Olofeso stated, casting doubt on the feasibility of achieving the ECOWAS Single Currency Roadmap by 2027.

The Committee of Governors, led by Olayemi Cardoso, has called for updated and reliable data for policy analysis and periodic seminars to address macroeconomic challenges. As the region gears up for the mid-year 2024 statutory meetings, the focus will be on crafting strategies to navigate these economic disparities and work towards the shared goal of a single currency.

The path to a unified West African currency is fraught with hurdles, yet the commitment to overcome these challenges remains undeterred, signaling a pivotal moment in the region's quest for economic integration.