CBN Agrees to Change Naira to New Currency | What Nigerians Must Know

Governors of central banks across the subregion recently gathered in Monrovia, Liberia, under the framework of the Economic Community of West African States to fast-track preparations for the single currency, as reported by Legit.

The high-level meeting focused on harmonising monetary policies, strengthening governance systems, and ensuring that participating nations meet strict macroeconomic benchmarks required for the rollout.

In a statement issued on February 14, 2025, Nigeria’s presidency described the engagement as a decisive step toward finalising policy alignments and institutional structures necessary to operationalise the Eco project.

Nigeria’s central role in the Eco initiative

As the region’s largest economy, Nigeria is expected to play a leading role in shaping the future of the proposed currency.

The Governor of the Central Bank of Nigeria, Olayemi Cardoso, joined counterparts from across West Africa at the Monrovia talks, underscoring Nigeria’s commitment to the integration plan.

The 12 countries backing the Eco include Nigeria, Ghana, Liberia, Sierra Leone, Guinea, The Gambia, Cape Verde, Guinea-Bissau, Senegal, Côte d’Ivoire, Togo, and Benin.

However, the rollout will follow a phased approach. The first wave is expected to involve Liberia, Nigeria, Ghana, Sierra Leone, Guinea, and The Gambia, provided they meet agreed fiscal and monetary convergence criteria.

These benchmarks include inflation control, sustainable debt levels, stable exchange rates, and disciplined fiscal deficits.

Officials insist that compliance will be non-negotiable.

According to Nigeria’s presidency, the Eco’s launch will depend strictly on adherence to macroeconomic standards and the establishment of credible, independent institutions capable of managing a shared monetary system.

Why has the Eco faced repeated delays?

The Eco project has been on the regional agenda for years, but has repeatedly stalled due to economic divergence among member states. Inflation spikes, widening fiscal deficits, exchange rate volatility, and uneven growth patterns have made convergence difficult.

Some countries have struggled to maintain single-digit inflation or keep budget deficits within agreed limits. Others have faced currency instability, complicating efforts to align monetary frameworks across borders.

Despite these setbacks, the latest meeting suggests renewed political determination.

Regional leaders argue that deeper monetary integration is essential for boosting intra-African trade, attracting foreign investment, and reducing dependence on external currencies for cross-border transactions.

What the Eco could mean for West Africa 

If successfully launched, potentially by 2027, the Eco would rank among Africa’s most ambitious monetary integration projects.

A unified currency could reduce exchange rate risks, cut transaction costs for businesses, and stimulate trade within the subregion.

For businesses operating across borders, eliminating multiple currency conversions could simplify operations and improve price transparency.

Governments, meanwhile, hope the Eco would strengthen economic stability and enhance West Africa’s collective bargaining power in global markets.

Still, significant hurdles remain. Achieving sustained macroeconomic discipline across diverse economies will require tough policy choices and consistent political commitment.