The Emir of Kano and former Governor of the Central Bank of Nigeria (CBN), Muhammadu Sanusi II, has cautioned leaders of the Economic Community of West African States (ECOWAS) against hastily launching the proposed ECO common currency, warning that the initiative could fail without strong economic foundations.

Speaking on Thursday 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, Sanusi stressed that a successful monetary union must be built on economic convergence, fiscal discipline and credible institutions rather than political ambition.

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

While acknowledging the potential benefits of the ECO currency—including reduced transaction costs, increased regional trade and improved competitiveness—he insisted that monetary integration should be driven by sound economic realities rather than symbolism.

According to him, West Africa’s population of about 450 million people and a combined Gross Domestic Product estimated at nearly $900 billion present enormous opportunities for growth. However, he noted that the region must first convert its demographic advantage into productivity, purchasing power and deeper market integration.

Sanusi argued that the region’s youthful population should be seen as an economic asset capable of driving development if properly harnessed.

“These youths can become productive economic agents contributing to growth and prosperity. Failing to create opportunities for them could fuel insecurity and social instability,” he said.

The former CBN governor noted that a common currency could enhance the region’s appeal to international investors by creating a larger integrated market free from exchange-rate barriers.

“Investors are better off looking at a West African economy with a single currency and no trade barriers than looking at individual countries alone,” he stated.

Despite the prospects, Sanusi maintained that the ECO should emerge as the culmination of a broader integration process rather than serve as its starting point.

“The common currency is often the most visible feature of a monetary union, but its success depends on deeper economic and institutional foundations,” he said, describing it as “the last step at the top of a pyramid.”

He identified political commitment, strong institutions, fiscal discipline, financial integration, labour mobility and regional trade expansion as essential pillars for a sustainable monetary union.

Sanusi also expressed concern that ongoing tensions between ECOWAS and the Alliance of Sahel States (AES)—comprising Niger, Burkina Faso and Mali—could derail efforts toward monetary integration.

“You cannot be discussing a common currency with countries while simultaneously threatening them over political disagreements. Politics must be managed effectively for economic cooperation to succeed,” he warned.

Calling for renewed regional unity, the renowned economist stressed that reconciliation among member states remains critical to the success of ECOWAS’ integration agenda.

“The unity of West Africa is sacrosanct. Differences should be resolved within the framework of a united ECOWAS,” he said.

Drawing lessons from the Eurozone, Sanusi noted that European countries achieved substantial economic convergence and institutional harmonisation before introducing a common currency.

He also defended the independence of central banks, warning that political interference and excessive money creation could undermine economic stability.

“The central bank is not a printing press. You cannot print money endlessly and expect a strong exchange rate or stable prices,” he said.

Reflecting on his tenure as CBN governor, Sanusi praised former Presidents Umaru Musa Yar’Adua and Goodluck Jonathan for respecting the autonomy of the apex bank and refraining from influencing monetary policy decisions.

He further expressed concern over rising public debt levels across the region, warning that unsustainable borrowing could threaten long-term economic stability.

“We are borrowing today like there is no tomorrow. We need accountability and fiscal sustainability,” he said.

Presenting data on inflation, fiscal deficits and trade flows, Sanusi argued that ECOWAS economies remain far from achieving the convergence required for a viable common currency.

He noted that intra-regional trade currently accounts for only 10 to 12 per cent of total trade within West Africa, compared to about 60 per cent within the European Union.

“Would you surrender monetary independence when regional trade is only 10 per cent? For ECO to succeed, trade integration must deepen significantly so that the benefits clearly outweigh the costs,” he argued.

Sanusi concluded that the ultimate goal of the ECO project should be regional prosperity and competitiveness rather than simply introducing a shared currency.

“Build the foundations first—macroeconomic convergence, payment system integration, trade expansion, infrastructure and connectivity. The common currency comes last,” he said.

Earlier, the Director-General of NILDS, Prof. Abubakar O. Sulaiman, described the proposed ECO currency as one of the most significant economic and political initiatives ever contemplated within the ECOWAS sub-region.

He said the quest for a common currency goes beyond technical considerations and carries far-reaching implications for economic sovereignty, regional stability and long-term development across West Africa.