ECOWAS single currency: member states urged to diversify economies,to mitigate challenges
NAN-H-56
Diversification
By Temitope Ponle
Abuja, Dec. 9, 2016 (NAN) ECOWAS has called on member states to diversify their economies and enhance cooperation to mitigate challenges that would promote growth and development in the sub-region.
This formed part of the recommendations made at the end of a two-day technical meeting of the ECOWAS Macroeconomic Policy Committee on Multilateral Surveillance in Abuja on Friday.
Mr Lassane Kabore, Director, Multilateral Surveillance, ECOWAS Commission, told the News Agency of Nigeria (NAN) that addressing economic challenges would facilitate economic integration in the sub-region.
Kabore said that member countries had faced more economic challenges in 2016.
“When you look at the performance in ECOWAS GDP, the situation is worse than we had in 2014.
“The concern is particularly Nigeria and because its economy is very important in the ECOWAS sub-region.
“Nigeria makes up almost 70 to 75 per cent of the regional GDP, and when the country has a problem it affects the overall performance of ECOWAS.
“The recommendations made by this meeting is that member states should diversify their economies.
“For Nigeria the problem is here because their economy is based on oil; if the economy was diversified it would mitigate the current challenges.”
He also said that countries were urged to effectively monitor their inflation rates.
He added that the commission was further directed to review the report on to single currency and identify the constraints to meeting up with the set target.
“ECOWAS would look at the possibility of achieving this by 2020 and make recommendations on what we can do to fastback the possibility of a single currency by 2020.
“All stakeholders would be involved and if this is not possible, we would define a new and realistic target,” he said.
The Deputy Minister for Economic Management, Ministry of Finance and Development Planning of Liberia, Mr Alvin Attah said it was important for member states to work together.
Attah said that enhanced cooperation would fast track the achievement a monetary union.
“We all have our economic challenges, but if we come together and support one another, with time we will be able to meet our deadline,” he said.
He reiterated that achieving the single currency would liberalise trade within the sub-region and promote integration. (NAN)
Edited by Julius Enehikhuere