By Babajide Komolafe

The Central Bank of Nigeria (CBN) said that the establishment of an African Monetary union requires compromise and commitment from African countries.

Deputy Governor, Economic Policy, CBN, Dr. Sarah Alade, stated this while receiving the Joint Technical Committee of the AUC-AACB, which met in Abuja, last week to consider a commissioned report on the establishment of African Central Bank (ACB).

The AUC Steering Committee set up under the Chairmanship of CBN Governor Sanusi Lamido Sanusi, in partnership with the Association of African Central Bank (AACB) set up a Joint Technical Committee to closely monitor the progress and carry out preparatory work towards the establishment of the African Central Bank.

Welcoming the experts on behalf of the governor, Alade thanked the Joint Technical Committee for their diligent work and stated that they should all see the project as a collective African project which must start on a strong foundation given lessons from other monetary union. She also stressed the need for understanding, commitment and comprise form all member states if the project is to be successful.

She reiterated the importance of meeting the basic preconditions before moving to the final destination of single currency. She restated Nigeria’s commitment to the process and the need for all countries to see the project as an African project for the good of the African continent.

In response, the Joint Technical Committee thanked the Government of Nigeria and the Central Bank of Nigeria for the commitment the country has shown to the project.

The Joint Technical Committee is made of experts from the five Regional Economic Communities (RECs) in Africa, experts from the African Union Commission and representatives of Central Banks from the five regions. The experts met in Abuja to consider the strategic report in preparation for a Joint AUC-AACB Meeting and the Annual Assembly of the AACB which will take place in Algiers, Algeria on June 27, 2013.

The Joint Technical Committee was mandated to undertake a study on the challenges and prerequisites of monetary integration in Africa. Specifically they were mandated to provide deeper insight to African Heads of State on the prerequisites and challenges of monetary integration with a view of advising on the practical challenges of creating a single currency and common African Central Bank.

The experts are also to examine the conditions for instituting a single currency, including market unification and macroeconomic convergence as well as provide practical recommendation for the fulfilment of these preconditions.

The report of the study group proposes a roadmap with clear tasks and timelines leading to the establishment of the African Economic, Fiscal and Monetary Union as well as the establishment of African Central Bank and Africa Single Currency.