The Emir of Kano, Muhammadu Sanusi II, yesterday cautioned West African leaders against rushing into the adoption of the proposed ECO common currency, warning that monetary integration cannot succeed unless it is anchored on strong economies, fiscal discipline, robust institutions and genuine political commitment. PoliticalNews Updates

Speaking at a policy dialogue on “ECO Currency and Monetary Integration in West Africa: Implications for Nigeria”, organised by the National Institute for Legislative and Democratic Studies (NILDS) in Abuja, the former governor of the Central Bank of Nigeria (CBN) said the region remains far from meeting the conditions necessary for a successful monetary union.

Sanusi argued that while ECO has the potential to reduce transaction costs, expand markets and strengthen the global competitiveness of West African economies, the project would fail if it is driven by political aspirations rather than economic realities.

“A currency is only as strong as the economy behind it. History shows us that successful monetary unions are built on economic convergence, institutional credibility and shared prosperity, not aspiration alone,” he said.

The Emir noted that Africa could no longer afford to remain fragmented at a time when other regions of the world were deepening economic cooperation.

“All over the world, you are having cooperation and collaboration. Africa is still insular and fragmented, and we need to take that step towards greater economic integration,” he said.

According to him, West Africa possesses enormous demographic and economic potential, with a population of about 450 million people and a combined Gross Domestic Product (GDP) estimated at nearly $900 billion.

“The challenge before us is transforming this population into purchasing power, productivity and market integration,” he stated.

Sanusi said the region’s youthful population should be viewed as an economic advantage rather than a burden.

“These children have been born. These youths are alive. We are not going to bury them. What do you do with them? Do you turn them into economic agents that add to your productivity, or do you leave them as idle bandits, terrorists and thugs?” he asked.

He argued that a common currency would make West Africa more attractive to investors by creating a larger integrated market and eliminating barriers associated with multiple currencies.

“Investors are better off looking at a West African economy with a single currency and no trade barriers than looking at Nigeria, Ghana or Sierra Leone alone,” he said. NigeriaCurrent Affairs

However, he stressed that monetary integration should be regarded as the final stage of a broader economic integration process.

“The common currency is often the most visible feature of a monetary union, but success depends on deeper economic and institutional foundations,” he said.

Sanusi listed political commitment, strong institutions, financial integration, trade integration, labour mobility, fiscal discipline and economic convergence as critical requirements for a successful monetary union.

“While the common currency is listed as number one, it is actually the last step at the top of a pyramid,” he added.

The former CBN governor identified political commitment as the most crucial ingredient for the success of the ECO project, warning that strained relations within the Economic Community of West African States (ECOWAS) could undermine efforts toward integration. PoliticalNews Updates

Referring to tensions between ECOWAS and the Alliance of Sahel States (AES), comprising Niger, Burkina Faso and Mali, Sanusi said meaningful monetary integration would be impossible without rebuilding trust among member states.

“You cannot be talking about a common currency with Niger, Burkina Faso and Mali when you are threatening them with force in their internal matters. They will not even listen to you,” he said.

“Politics is so dominant in world affairs. If we do not manage politics well, economics can never work.”

He urged ECOWAS leaders to prioritise reconciliation with the three countries, insisting that regional unity remained indispensable.

“The unity of West Africa is sacrosanct. Whatever issues you have, you resolve them within the framework of a united ECOWAS,” he said.

Drawing lessons from the Eurozone, Sanusi explained that Europe did not begin with a common currency but first achieved substantial convergence in economic fundamentals and institutional standards.

He noted that Germany and France initially formed the nucleus of the euro project before other countries joined after meeting established convergence criteria.


The Emir also emphasised the importance of strong leadership and institutions, rejecting suggestions that countries must choose between the two.

“You need both. If you have a strong institution but a weak man at the top of it, he destroys it,” he said.

According to him, true leadership strength lies in obedience to the law rather than the arbitrary exercise of power.

“A strong Inspector-General of Police is one who recognises that the police exist to apply the law equally and consistently to all citizens, not someone who can simply lock people up.

“A strong judge is one who applies the law fairly and consistently to all citizens. The ability to lock people up is not strength; it is the misuse of institutional power,” he added.

Sanusi also mounted a strong defence of Central Bank’s independence, describing monetary stability as the bedrock of sustainable economic growth.

Recalling his tenure as CBN governor, he said former Presidents Umaru Musa Yar’Adua and Goodluck Jonathan respected the autonomy of the apex bank and never attempted to dictate monetary policy decisions.

He recounted explaining to former President Jonathan why artificially lowering interest rates through excessive money creation would worsen inflation and weaken the naira.

“I explained to him that only a small percentage of Nigerians have access to credit, but every Nigerian goes to the market. You cannot print money and have a strong exchange rate. You cannot print money and have stable prices,” he said.

He warned that central banks must resist pressure from governments seeking to finance expenditure through monetary expansion.

“The central bank is not there as a printing press. What we are seeing today was totally predictable. There is nothing happening in Nigeria today that an economist would not have told you 10 years ago would happen,” he said. NigeriaCurrent Affairs

The former CBN governor also criticised excessive government borrowing, warning that rising debt obligations could undermine development efforts and threaten fiscal sustainability.

“We are borrowing today like there is no tomorrow. We have just come back from the brink where 100 per cent of revenue was going to service debt,” he said.

He called for greater transparency and accountability in public borrowing.

“We need to know where the money is going. We need fiscal sustainability,” he added.

Presenting data on inflation, fiscal deficits and regional trade patterns, Sanusi concluded that West Africa remains ill-prepared for a common currency.

He observed that intra-regional trade within ECOWAS accounts for only about 10 to 12 per cent of total trade, compared with roughly 60 per cent within the European Union.

“Would you give up monetary independence when trade is only 10 per cent?” he asked.

“For you to get to ECO, you need a trade of 60 per cent where we can clearly see the benefits outweighing the costs.”

According to him, most countries in the region continue to struggle with double-digit inflation, weak fiscal discipline and limited institutional independence.

“On price stability, fiscal discipline and trade integration, we are still far away from where we should be,” he said.

Responding to questions, Sanusi urged Nigeria and ECOWAS to repair relations with Niger, Mali and Burkina Faso, warning that alienating neighbouring countries would be a strategic mistake. NigeriaCurrent Affairs

“One of the greatest strategic errors Nigeria can make is to turn Niger into an enemy. I still think there is a great possibility for reconciliation. I am not pessimistic at all,” he said.

He concluded that the ultimate objective of the ECO project should be regional prosperity rather than merely introducing a common currency.

“The ultimate objective is not a common currency but a more prosperous, connected and globally competitive West Africa,” he said.

“Build the foundations first. Macroeconomic convergence, payment system integration, trade integration, infrastructure and connectivity. The common currency comes last.”

Earlier, Director-General of NILDS, Professor Abubakar O. Sulaiman, described the proposed ECO currency as a major economic and political undertaking that requires careful and evidence-based assessment, particularly for Nigeria as the region’s largest economy. PoliticalNews Updates

Sulaiman said the quest for a common currency transcends technical considerations and carries profound implications for the sovereignty, stability and prosperity of ECOWAS member states.

“The quest for a common currency within the ECOWAS sub-region is not merely a technical pursuit; it is a profound economic and political undertaking with significant implications for the sovereignty, stability and prosperity of member states,” he said.

According to him, the policy dialogue was convened to critically examine the prospects, policy implications and strategic considerations surrounding monetary integration in West Africa.

“Our objective is to move beyond abstract theory and engage with the practical realities of how a common currency might influence regional economic stability and, crucially, how it aligns with Nigeria’s domestic economic and development agenda,” he said.

The NILDS Director-General reiterated the institute’s commitment to providing research-driven support for legislative and policy decisions, noting that the outcome of the dialogue would help lawmakers and policymakers navigate the opportunities and challenges associated with regional monetary integration.

“We aim to generate actionable insights that will guide lawmakers and policymakers in navigating the multifaceted challenges and opportunities of monetary integration,” Sulaiman said.