Title: ECOWAS Single Currency ECO: Its Implementation and Challenges.
Authors: Onuh Sunday Michael, Gambo Zakka & Joseph Danmale
Volume: 10
Issue: 5
Pages: 156-160
Publication Date: 2026/05/28
Abstract:
The global economy is subject to broad transformation. And many countries have been facing various degrees of enormous challenges in efficiently and effectively dealing with the changes encountered as a result of globalization and liberalization. ECOWAS has followed the footsteps of European Union in terms of structure and operation and members of the sub regional body had undergone series of deliberations through regular meetings; leading to the creation of Eco similar to Euro which was adopted by member states. One of the main purposes for its creation is to have a common currency to serve as legal tender across the sub region with the intention of reducing obstacles of doing business and increasing trade overall across the sub region. The Research work adopted Optimum Currency Area Theory propounded by Robert Mundell in 1961 as its theoretical Framework. The implementation of the ECO currency earlier proposed to take off by the year 2020 faces a lot of challenges after six years it is yet to be implemented due to many factors which include: Lack of Legal Mechanisms to Compel Compliance with Treaty Obligations, Political Instability, Lack of Political will among ECOWAS Nations, Inadequate infrastructures, Loyalty to Previous Colonial Masters, and Fear of Domination by Stronger States among other challenges due to the complexity of West African states. The study recommends strong political will and commitments among the ECOWAS member states head of government as well as break the loyalty to their former colonial masters.