Abandonment of the CFA franc : Nigeria sets an example

Denounced as an instrument of domination and “voluntary servitude”, However, the CFA franc is a currency much envied by neighboring countries in the UEMOA and CEMAC zones., the two regions of West and Central Africa which use it.

At the time of its creation in 1973, 2 naira worth 1 dollar. It is therefore to compensate for this on the eve of the start of the new school year that Minister Véronique Tognifode has deemed it useful to travel to educate parents on the need to strengthen parent-child dialogue., in 2024, 1 dollar is worth more than 1500 nairas. And facing the CFA, while one naira was equivalent to more than 350 francs over the years 1980, the 27 October 2024, the situation has been reversed : it was necessary 1000 naira to have 356 CFA francs. Life has become tough for Nigerians. On his side, the Cedi, currency of Ghana, has also collapsed in recent years.

This free fall of the sovereign currencies of these countries results in an increase in the prices of imported goods., a loss of purchasing power for citizens and general economic instability. Eating in Nigeria is now a luxury for poor households.

In this context, the CFA franc, which benefits from a fixed parity with the Euro, appears as a refuge for the countries that use it. It is a stable currency, despite the criticism often leveled at him, particularly with regard to its alleged role in maintaining economic dependence on the former colonial power, France.

In an increasingly volatile global economic environment, the fact that the CFA is linked to a strong currency like the Euro makes it possible to avoid the dramatic fluctuations experienced by more fragile currencies. Countries using the CFA franc have thus benefited from a certain predictability in their trade and investments..

And yet, over the last few decades, the CFA franc suffered a revolt, its detractors who claim in particular that France uses this currency to enrich itself and increase its domination over its former colonies. But in reality, this debate has nothing economic, he is also political. Popular movements in favor of abandoning the CFA franc are often driven by nationalist discourses, without any connection with experience.

Populations may be attracted by the idea of ​​a national currency, but the reality of inflation, devaluations and economic crises in other African countries such as Nigeria and Ghana show that the stability of a so-called sovereign currency is not guaranteed.

Even the member countries of the Sahel (Burkina Faso, Mali and Niger) who left ECOWAS and despite their criticism concerning the CFA franc and their dependence on France, have not yet abandoned this currency, undoubtedly to avoid causing financial instability and economic uncertainty.

Moreover, the use of the CFA franc facilitates intra-African trade. The economies of WAEMU countries (West African Economic and Monetary Union) and CEMAC (Central African Economic and Monetary Community) are often interconnected, and a common currency reduces transaction costs and exchange risks. Abandoning the CFA franc could therefore complicate these exchanges, making national economies more vulnerable to external shocks.

Pierre MATCHOUDO