African regional currency may take off in 2004

The Monetary Zone, which was initially slated to commence next year, was later shifted in order to allow members of ECOWAS to meet the convergence criteria for the take-off of the single currency.

Prof. Gana who briefed State House Correspondents after the Federal Executive Council meeting yesterday, said the West African Monetary Zone nations are expected to limit their respective budget deficits by 10 per cent, reduce inflation to a single digit, improve economic productivity and ensure an efficient taxation system.

He said Nigeria, an important member of the zone was determined to meet the criteria, and also interested in hosting the West African Central Bank headquarters in Abuja.

This, he explained, was because Nigeria is currently producing 60 per cent of the sub-region's Gross Domestic Products (GDP).

"The Nigerian government believes that it would be helpful and useful to the Nigerian economy to locate the bank's headquarters in Nigeria," he declared.

To this end, he said the Ministry of Finance and the Central Bank of Nigerian have been directed to ensure that all infrastructures are put in place before 2004 in readiness for the take off of the single currency in West Africa and its headquarters in Abuja.

The decision of the government to host the West African Central Bank followed the consideration of the report of the 8th meeting of the Convergence Council of the West African Monetary Zone.

Other decisions taken at yesterday's meeting include the approval of a contract for the installation of a transformer at Oshogbo transmission centre at the cost of N451.8 million and another for the rehabilitation of Afor Power Station, in Rivers at the cost of £38 million.

He also announced the award of contract for the rehabilitation of Shagamu-Benin expressway at the cost of N1.7 billion for completion in six months.

Similarly, a task force on road maintenance would be set up by the Ministry of Works and Housing.