Economy
ECOWAS to miss 2020 single currency deadline—ECA
United Nations Economic Commission for Africa (ECA) has said that the Economic Community of West Africa States plan for a single currency by 2020 is now unrealistic. Mr Amadou Diouf, an Economist from ECA West Africa said this in Cotonou in a presentation at the 21st Session of the Intergovernmental Committee of Experts (ICE) for West Africa. He said that the attainment of macroeconomic criteria by ECOWAS states for full integration of the region may be unattainable before the 2020 deadline for the commencement of the region’s single currency agreement.
He spoke based on the report of the ECA titled “Regional Integration in West Africa: Challenges and Prospects.” Diouf said from the Commission’s findings, many of the countries were yet to meet the macroeconomic convergence criteria for a single currency set up by the ECOWAS and the West African Monetary Agency (WAMA). According to the report, the goal is to create a common currency for much of West Africa. For the currency to be implemented, ten convergence criteria set out by WAMA must be met.
The four primary criteria to be achieved by each member country include single-digit inflation rate at the end of each year and fiscal deficit of not more than three per cent of the GDP. Also a central bank deficit-financing of not more than 10 per cent of the previous year’s tax revenues and gross external reserves that could cover a country’s import bill for a minimum of three months were proposed. There are also six secondary criteria which had to be achieved by each member country. They include the prohibition of new domestic default payments and liquidation of existing ones, tax revenue should be equal to or greater than 20 per cent of the GDP.
Also, wage bill to tax revenue should be equal to or less than 35 per cent, public investment to tax revenue equal to or greater than 20 per cent and a stable real exchange rate as well as a positive real interest rate. “Less than two years from the attainment of the targeted deadline for the single currency, the pre-requisite conditions to achieve the goals, notably the macroeconomic convergence criteria have only been partially achieved. “Ghana, Niger and Nigeria have been put in charge to advocate for this monetary agenda. An updated road map was adopted in Ghana at the meeting of the presidential task force.
“It is important that West African experts be informed of the new road map and examine the potential implications of the ECOWAS,” Diouf said. On the implication of the African Continental Free Trade Area (AfCFTA) on West Africa, Diouf said it would help create jobs, boost trade with other regions and additional market for small businesses. He said despite the fact that Nigeria, Guinea Bissau and Sierra Leone were the only ECOWAS member countries yet to sign the AfCFTA, it had no negative impact on trade in the region. He said this was because they were still bound by the ECOWAS common external tariff, which offers fair trade for member countries. “In the area of terrorism, although significant progress has been made, especially in the fight against Boko Haram in Northern Nigeria, the region remains frequently subject to terrorist attacks. This is especially true for the Lake Chad areas, Burkina Faso, Mali and Niger,” he said.
Diouf also spoke on the implication of the dependence of some ECOWAS countries on the Nigerian Economy. He said when Nigeria went into recession in 2016 it negatively affected economic growth in countries such as Niger, Bénin and Burkina Faso. “Indeed the rebound of growth in the region from 0.3 per cent in 2016 to 2 per cent in 2017, when the recession in Nigeria ended is a clear indication of such dependency,” he said. Diouf described as good news, especially to neighboring countries, the projection that Nigeria’s economy would grow by 3.5 per cent in 2018.
The Intergovernmental Committee of Experts is a body established by the United Nations General Assembly. In West Africa, the committee meets annually with high-level decision makers from member states to discuss economic and social performance and make relevant recommendations. The 21st session of the committee is taking place in Cotonou, Benin Republic from June 27 to 29. The central theme of the meeting would be on regional integration, security and progress in achieving the UN Sustainable Development Goals in West Africa.
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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