Intensify Efforts On Single Currency, Buhari Tells ECOWAS Countries

President Muhammadu Buhari on Friday called on member countries
of the Economic Community of West African States to intensify
efforts at achieving the single currency programme by 2020.

He said that the Federal Government was committed to providing a
leadership role in assisting ECOWAS to achieve the single currency
programme.

He explained that Nigeria would continue to play the leadership
role in moving the ECOWAS integration agenda forward.

The President spoke at the West African Monetary Zone 2018
mid-year statutory meetings held in Abuja.

The ECOWAS authority had approved the reduction of the
macroeconomic convergence criteria from 11 criteria (four primary
and seven secondary criteria) to six (three primary and three
secondary criteria).

The three primary criteria that are being used are a budget
deficit of not more than three per cent; average annual inflation
of less than 10 per cent with a long term goal of not more than
five per cent by 2019; and gross reserves that can finance at least
three months of imports.

The three secondary convergence criteria that have been adopted
by ECOWAS are public debt/Gross Domestic Product of not more than
70 per cent; central bank financing of budget deficit should not be
more than 10 per cent of previous year’s tax revenue; and nominal
exchange rate variation of plus or minus 10 per cent.

Presenting a progress report at the opening session of the
meeting, the Director General, West Africa Monetary Institute, Dr
Ngozi Egbuna, had on Thursday explained that as of December 2017,
none of the countries had met all the four criteria.

But Buhari, who was represented at the event, said by the
Secretary to the Government of the Federation, Mr Boss Mustapha, as
the largest economy in the region, a lot of responsibility rested
on Nigeria for the establishment and sustainability of the monetary
union.

Buhari stated, “Let me underscore that Nigeria remains committed
to the integration agenda and a sustainable development of our
community with the overall goal of improving the quality of life of
all ECOWAS citizens.

“In order to move the integration forward in very sustainable
manner, Nigeria, once again emphasizes that economic convergence
must be based on sound and sustainable macroeconomic fundamentals
and to reconsider the issue of transforming WAMI (West African
Monetary Institute) into a commission.

“This is very critical because the propose merger of WAMI and
WAMZ by the ECOWAS Commission into a ECOWAS Monetary Institute
would leave the WAMZ with no forum to exchange ideas and discuss
matters of common interests to the English-speaking countries in
the ECOWAS.”

The President added that there was no denying that considerable
amount of resources, time and effort had been expended in the
pursuit of regional integration agenda.

He said this should be justified by achieving the objectives of
the monetary union by 2020.

He stated, “Therefore, your gathering here is critical as we are
barely 18 months to the target date for the introduction of the
ECOWAS single currency.

“Members of council, as you discuss the progress towards the
launch of a monetary union in the sub-region, you need to situate
the issues within the global context and the challenges confronting
existing monetary zones.

President Muhammadu Buhari on Friday called on member countries
of the Economic Community of West African States to intensify
efforts at achieving the single currency programme by 2020.

He said that the Federal Government was committed to providing a
leadership role in assisting ECOWAS to achieve the single currency
programme.

He explained that Nigeria would continue to play the leadership
role in moving the ECOWAS integration agenda forward.

The President spoke at the West African Monetary Zone 2018
mid-year statutory meetings held in Abuja.

The ECOWAS authority had approved the reduction of the
macroeconomic convergence criteria from 11 criteria (four primary
and seven secondary criteria) to six (three primary and three
secondary criteria).

The three primary criteria that are being used are a budget
deficit of not more than three per cent; average annual inflation
of less than 10 per cent with a long term goal of not more than
five per cent by 2019; and gross reserves that can finance at least
three months of imports.

The three secondary convergence criteria that have been adopted
by ECOWAS are public debt/Gross Domestic Product of not more than
70 per cent; central bank financing of budget deficit should not be
more than 10 per cent of previous year’s tax revenue; and nominal
exchange rate variation of plus or minus 10 per cent.

Presenting a progress report at the opening session of the
meeting, the Director General, West Africa Monetary Institute, Dr
Ngozi Egbuna, had on Thursday explained that as of December 2017,
none of the countries had met all the four criteria.

But Buhari, who was represented at the event, said by the
Secretary to the Government of the Federation, Mr Boss Mustapha, as
the largest economy in the region, a lot of responsibility rested
on Nigeria for the establishment and sustainability of the monetary
union.

Buhari stated, “Let me underscore that Nigeria remains committed
to the integration agenda and a sustainable development of our
community with the overall goal of improving the quality of life of
all ECOWAS citizens.

“In order to move the integration forward in very sustainable
manner, Nigeria, once again emphasizes that economic convergence
must be based on sound and sustainable macroeconomic fundamentals
and to reconsider the issue of transforming WAMI (West African
Monetary Institute) into a commission.

“This is very critical because the propose merger of WAMI and
WAMZ by the ECOWAS Commission into a ECOWAS Monetary Institute
would leave the WAMZ with no forum to exchange ideas and discuss
matters of common interests to the English-speaking countries in
the ECOWAS.”

The President added that there was no denying that considerable
amount of resources, time and effort had been expended in the
pursuit of regional integration agenda.

He said this should be justified by achieving the objectives of
the monetary union by 2020.

He stated, “Therefore, your gathering here is critical as we are
barely 18 months to the target date for the introduction of the
ECOWAS single currency.

“Members of council, as you discuss the progress towards the
launch of a monetary union in the sub-region, you need to situate
the issues within the global context and the challenges confronting
existing monetary zones.