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L-R:
President Muhammadu Buhari, President of Togo, Faure Gnassingbe; President of
Niger, Mahamadou Issoufou; Ivory Coast President, Alassane Ouattara; and
President of Ghana, Nana Akufo Ado, at the Economic Community of West African
States summit on the creation of ECOWAS single currency in Niamey, Niger
Republic... on Tuesday. Photo: State House
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President Muhamadu Buhari
on Tuesday in Niamey, Republic of Niger, urged member countries of the Economic
Community of West African States to tread carefully in pushing for a single
currency for the sub-region by 2020.
The Punch report continues:
He
cited the challenges faced by the European Union in realizing the same goal to
buttress his position.
According
to a statement by his Special Adviser on Media and Publicity, Mr. Femi Adesina,
the President made his position known in his speech at the fourth meeting of
the Presidential Task Force on the ECOWAS Currency Programme.
Buhari
said the necessary economic fundamentals among countries continued to differ
over the years, making it more difficult to pull through with the project by
2020.
“Nigeria
advises that we proceed cautiously with the integration agenda, taking into
consideration the above concerns and the lessons currently unfolding in the
European Union.
“To
that end, Nigeria will caution against any position that pushes for a
fast-track approach to a monetary union, while neglecting fundamentals and
other pertinent issues,” the President was quoted as saying.
Buhari
noted that some of the obstacles to realizing the road map for the
implementation of a single currency included diverse and uncertain
macro-economic fundamentals of many countries; unrealistic inflation targeting
based on flexible exchange rate regime; and inconsistency with the African
Monetary Cooperation Programme.
The
President said domestic issues in ECOWAS member countries relating to their
constitutions and dependence on aids had continued to affect the framework for
implementing the single currency in the sub-region
He
said, “Although the ECOWAS Commission has anchored its pursuit of the new
impetus to monetary integration on the information presented to the heads of
state, which were the basis for their recommendations, we are concerned that we
have not properly articulated and analyzed a comprehensive picture of the state
of preparedness of individual countries for monetary integration in ECOWAS by
2020.
“In
previous meetings, we had specifically raised observations on the state of
preparedness of the member states, the credibility of the union if anchored on
watered down criteria, and the continuing disparities between macroeconomic
conditions in ECOWAS countries, amongst others. And I would like to reiterate
this concern.”
The
President told the heads of state that the conditions that pushed Nigeria into
withdrawing from the process in the past had not changed.
“Nigeria
had earlier withdrawn from the process because its key questions and concerns
were ignored and till date, none of the issues has come up as an agenda issue
to be considered by the taskforce.
“Consequently,
the road map which did not involve widespread consultation with national
stakeholders is not sufficiently inclusive,” he added.
Going
forward with the project, Buhari suggested a thorough review of the convergence
road map and the constitution of an expert committee on each of the subject
areas to come up with acceptable time frame, defined cost and funding sources
identified.
“This
should also consider stakeholders such as the Ministry of Finance, Customs,
parliamentary groups, tax authorities and immigration authorities to achieve
comprehensiveness,’’ he said.
The
President said there should be a push towards ratification and domestication of
legal instruments and related protocols, while fiscal, trade and monetary
policies and statistical systems, which had not gone far, could be harmonized.
Buhari
noted that the West African Economic and Monetary Union countries should make a
presentation on a clear road map towards delinking from the French treasury.
But
the President of the ECOWAS Commission, Marcel Alain de Souza, said the single
currency for the West African sub-region was a laudable and historical project,
regretting that it had taken too long to be actualized.
He said the creation of a
central bank for the West Coast would accelerate the process.
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