News:
May 13, 2026
Nigerian lawmaker says regional currency settlement system could cut out the US dollar and make cross-border trade cheaper and faster
A member of Nigeria’s delegation to the ECOWAS Parliament is calling for an immediate regional payment and settlement system that would allow West African countries to trade directly using their local currencies — bypassing the need for the US dollar or other third-party currencies.
Hon. Ahmed Muhammed Munir made the proposal after plenary during the ongoing First Ordinary Session of the Sixth Legislature of the ECOWAS Parliament in Abuja. The session is focused on translating commitments on democracy, security, and economic integration into concrete results for citizens.
“One of the things we can do immediately is to have an ECOWAS payment and settlement system so that we do not need to look for third currencies to make payments between ourselves.” — Hon. Ahmed Muhammed Munir
How it would work
Under Munir’s proposed system:
· A trader in Nigeria pays in naira
· A recipient in Ghana receives the equivalent in cedis
· No forex market involvement
“That, in itself, is a single currency through the back door,” he said.
Why it matters
Munir argued that reducing dependence on external currencies would:
· Lower transaction costs
· Improve trade efficiency
· Accelerate regional economic integration
While ECOWAS’ long-envisioned single currency remains a work in progress, the payment system offers a practical interim solution that can be implemented without delay.
Beyond trade: boosting revenues and the informal sector
Deeper economic integration, Munir said, would give governments more revenue to invest in education, healthcare, and poverty reduction.
“The whole idea is how we can generate wealth among ourselves, improve our tax systems and solve our problems within our community,” he said.
He also stressed the need to formalize the region’s vast informal sector, where much cross-border trade happens, so small businesses can access financing and support to expand.
Democracy, security, and direct elections
On governance, Munir said regional protocols must move from rhetoric to action.
“ECOWAS is excellent on protocol, but we must move from speeches and political will to concrete action,” he said.
On security, he called for stronger intelligence sharing and integrated regional strategies to tackle terrorism, coups, and transnational crime. He noted that economic growth, poverty reduction, and security are closely linked.
Finally, Munir advocated for direct elections into the ECOWAS Parliament, arguing that lawmakers elected solely to serve at the regional level would strengthen accountability and democratic legitimacy.
The ongoing deliberations in Abuja, he said, offer an opportunity to turn the ideals of regional integration into measurable improvements in the lives of West Africans.
Kwaku Sakyi-Danso / Ghanamps.com