Chief Mao Ohuabunwa is the treasurer of the West African Parliament, the fledgling sub-regional parliament headquartered in Abuja, presently engaged in the process of asserting a blueprint for the political and economic integration of the sub-region.
Chief Ohuabunwa, who quietly transmuted into his position from his post as deputy leader of the House of Representatives, 1999 to 2003, in this interview with Vanguard, analyses the economic benefits of the introduction of the West African Currency, the Eco, asserts the inevitability of complete integration and the sacrificial role expected of Nigeria, a country he affirms is the big brother in the region.
Chief Ohuabunwa, even in his elevated status in the sub-region, while maintaining his seat in Nigeria’s House of Representatives (PDP, Ohafia, Arochukwu, Abia State), says the introduction of the common currency avails great economic, nay, political potentials for the sub-region.
What plans are you making towards the introduction of a common currency for West Africa?
One of the basic reasons for the establishment of the Economic Community of West African States is to integrate the sub-region economically and to do this, you need to have a legal system for the exchange of goods and services. We have found out that with different currencies within the sub-region, it does not make for harmonised economic integration.
If you look at other regions, in Europe, you have the Euro, in America you have the dollar, so we felt that the best thing was to have a common currency within the sub-region. We believe that by having this common currency, we will be getting close to the economic integration of the sub-region. You can go from here up to Gambia, Guinea and you can trade with one currency and so, there will be uniformity.
But you also know that presently, we have two monetary zones. The Francophone countries with the exception of Guinea, which has the CFA which has been in existence for some time. What we are trying to do, is to set up the second monetary zone which will be made up of the Anglophone countries, so that we will have the second monetary zone and after that, we will now have a convergence point, where the first monetary zone and the second monetary zone will converge and we will come up with a common currency for the entire sub-region.
What are the milestones for the realisation of this common currency?
There must be the will power, because it is like dropping some of your sovereignty. You know people are extremely skeptical about change…but by 2005, we are going to meet up with this challenge.
When specifically?
We are expecting that by the 1st of July, 2005, that we should launch the second monetary zone, the Eco.
What are the consequences for the Naira?
I wouldn’t say what the consequences will be, but the naira will not disappear immediately because the two currencies will be on at the same time and gradually over time, naira might cease to exist, but for now, we don’t want to scare any group or country to say that your currency will not be there, but in Nigeria, naira will be there, Eco will be there.
In what ways will this development enhance the economic fortunes of Nigerians?
Definitely, it would. Don’t forget that in terms of population, Nigeria is about three times the population of this sub-region. In terms of economic well being, we are on top, and in terms of sponsorship of all activities of this sub-region, we will take almost 70%. So, when we now have this common currency, you will see that our rate of exchange to assist our neighbours will reduce.
Today, if we are to pay obligations to ECOWAS Secretariat and its affiliates, we normally pay in dollars and it has impact on our foreign exchange. But when it becomes something like a local thing, it becomes easy and if you want to make your contributions, it will be like paying in naira and it will not be a drain on our foreign exchange anymore.
Besides, it will increase economic activities here, because you will find out that in most sections of the sub-region, the major traders and transporters are Nigerians.
Some West African countries are said to habour suspicions against the aspirations of Nigeria in the sub-region. As a member of the West African Parliament, do you notice such feelings amongst your fellow parliamentarians from neighbouring West African countries?
There is no doubt about that. It is always there. Once you are dealing with any of the African countries, they are skeptical, maybe because you are well endowed. You don’t envy nothing, you envy something. If you are Mr. Nobody, nobody talks about you, nobody envies you, but they look at Nigeria as a big country that is well endowed, so when you are dealing with Nigeria, you must be careful, they will bring their weight to bear, they will bring their strength to bear, they bring their wealth etc.
But I tell you the truth, the democratisation of both ECOWAS and the African Union has actually helped in addressing some of these fears. Prior to this relationship where you now have West African Court of Justice, where judges from all parts of the West African region would come to interact, parliamentarians from the whole region will come to interact, you will see that gradually, that skepticism, that suspicion is beginning to give way. Most of them do not know that Nigeria is a big country that has the interest of its brothers at heart. We are not just there to rip them off or to exploit them and now, they are beginning to see.
Since the President of Nigeria, Chief Olusegun Obasanjo came into office, he has this large heart to fast-track the integration system, both within the sub-region and the entire African region. So, they are beginning to see sincerity of purpose in what Nigeria is doing, but prior to this time, the suspicion was very high.
What institutional framework have you built to sustain the West African common currency?
We have the West African Monetary Zone, a West African Central Bank, and then the ECOWAS Bank for Investment and Development, all these financial institutions are in place to welcome the birth of Eco.
How far has the Nigerian parliament gone to domesticate the conventions creating the Eco?
Some of these conventions had been signed so many years ago and like this one, it has been signed, just waiting for it to come for domestication. Since these conventions were signed without the input of the National Assembly, you will find out that at the end of the day, there is nothing we can do because Nigeria is already a signatory, Nigeria has been contributing, so trying to renege or removing some clauses at this time will be like trying to negate an agreement you are already part of.
So, once these conventions come, we will ratify them, but for me, who had the opportunity of seeing it, I think it is in the best interest of this country, especially as the entire sub-region see this country as a big brother. No matter what you say, there are sacrifices you must carry as a big brother.
Definitely, God has put us in a position that all these endowments are not for us alone, we are holding it in trust for our younger brothers, so definitely, there are sacrifices that Nigeria must make in the sub-region, everything is not to maximise profit.
