Economic Grouping in West Africa: (ECOWAS) & Niger Basin Commission – SS3 Commerce Lesson Note (Second Term)

Economic grouping is the coming together of different countries with common economic interests and goals.

• Purpose: to promote economic cooperation and development among member states.
• Protection: to protect and promote the economic and business interests of members.
• Growth: to stimulate the socio-economic and cultural development of members.
• West African examples: ECOWAS and the Niger Basin Commission.

Behavioural objectives

By the end of the lesson, students should be able to:

1. define economic grouping;
2. state how and when ECOWAS was formed and name its member countries;
3. list the aims and objectives of ECOWAS;
4. describe the organs of ECOWAS;
5. explain the problems of ECOWAS;
6. state the formation, member countries and aims of the Niger Basin Commission.

What are the benefits of economic grouping?

The benefits of economic grouping are the gains member countries get from working together.

• Wider market: producers sell to many countries, not only their own.
• Free trade: tariffs and other trade barriers among members are reduced or removed.
• Shared projects: members join forces on roads, power, research and industry.
• Stronger bargaining power: members speak with one voice in international trade.
• Peace and stability: cooperation helps members settle disputes.

How was ECOWAS formed?

The Economic Community of West African States (ECOWAS) is a regional group formed to promote cooperation, development and economic integration in West Africa.

• First step: in May 1975, West African leaders agreed to set up an economic grouping in the sub-region.
• Supporters: the idea was backed by the then Nigerian head of state and the Togolese president.
• Treaty: on 28 May 1975, representatives of fifteen West African nations signed the treaty establishing ECOWAS.
• Headquarters: the Executive Secretariat was first based in Lagos, Nigeria.
• Fund: the seat of operation of the fund was in Lome, Togo.
• Cape Verde: admitted later as the 16th member.
• Mauritania: opted out of ECOWAS in the year 2000.
• Main aim: to expand trade in the sub-region and promote cooperation in areas such as communication and culture.

Which countries are members of ECOWAS?

ECOWAS had fifteen members after Mauritania withdrew in 2000.

1. Nigeria
2. Ghana
3. Senegal
4. Niger Republic
5. Burkina Faso
6. Cape Verde
7. Benin Republic
8. Côte d’Ivoire
9. Liberia
10. Togo
11. Mali
12. Guinea Bissau
13. Sierra Leone
14. The Gambia
15. Guinea

What are the aims and objectives of ECOWAS?

The aims of ECOWAS are the goals members set for the community in its treaty.

1. To expand trade among countries by widening the markets in the region.
2. To improve the transport and communication system, that is, infrastructural facilities.
3. To ensure free movement of factors of production among member states by removing every obstacle.
4. To promote economic cooperation and development in industry, agriculture, science and other fields.
5. To maintain economic and political stability in the sub-region.
6. To harmonise agricultural policies and promote joint research projects.
7. To strengthen relations among member countries.
8. To contribute to the industrial development of West Africa as a whole.
9. To harmonise monetary policies among members.
10. To establish a common fund for cooperation, compensation and development.
11. To abolish tariffs and other restrictions on the movement of goods and services within the sub-region.
12. To promote sporting activities in the sub-region.
13. To settle disputes among members.
14. To set up a military body that will keep peace in the sub-region, for example ECOMOG.

What are the organs of ECOWAS?

The organs of ECOWAS are the bodies set up by the treaty to run the community.

• The Authority of Heads of State and Government: made up of the presidents and heads of government of all members. It is the main decision-making body.
• The Council of Ministers: made up of two representatives from each country.
  • It monitors the functioning and development of the community.
  • It makes recommendations to the heads of state.
  • It is responsible for carrying out the decisions of the heads of state.
• The Executive Secretariat: performs the administrative work of the community. It was first located in Lagos and is now in Abuja.
• Technical and Specialised Commissions: study matters and submit reports and recommendations to the Council of Ministers.
  • Defence commission.
  • Social and cultural commission.
  • Industry and agriculture commission.
  • Trade and customs commission.
  • Monitoring commission.
• The Community Tribunal: settles disputes and interprets the treaty.

What are the problems of ECOWAS?

The problems of ECOWAS are the difficulties that slow down the achievement of its aims.

• Fear of domination: members fear one another because of uneven development in the region.
• Different currencies: they reduce trade among members. For instance, transfer of money is difficult.
• Political and ideological differences: some countries practise capitalism while others adopt socialist economies.
• Political instability: frequent changes of government through coups have harmed the community.
• Colonial ties: the region is divided into French-speaking and English-speaking countries by former colonial links. This weakens unity.
• Irregular financial contribution: members do not pay their contributions to the community fund regularly.
• Failure to implement resolutions: some resolutions are not binding on members, so they are ignored.
• Lack of infrastructural facilities: poor social amenities hinder the aims of the community and make trade inefficient.

What is the Niger Basin Commission (NBC)?

The Niger Basin Commission (NBC) is a body set up by countries in the Niger Basin to cooperate on the use of River Niger.

• Formation: the treaty was signed by the member countries in October 1963.
• Headquarters: Niamey, Niger Republic.
• River Niger: one of the longest and largest rivers in Africa. It flows through many West African countries.

Which countries signed the Niger Basin Commission treaty?

1. Republic of Benin
2. Chad
3. Cameroon
4. Guinea
5. Burkina Faso
6. Nigeria
7. Mali
8. Côte d’Ivoire
9. Niger Republic

What are the aims and objectives of the Niger Basin Commission?

1. To guide navigation on the Niger River.
2. To ensure the most effective use of the resources of the river.
3. To streamline the construction of dams on the Niger.
4. To ensure the most effective use of the Niger water.
5. To undertake schemes to control floods and erosion.
6. To promote studies on the agricultural potentials of the River Niger.

What is the difference between ECOWAS and the Niger Basin Commission?

ECOWAS covers general economic integration in West Africa, while the NBC deals with the use of one river.

Evaluation

1. Define economic grouping.
2. State the year ECOWAS was formed and where its headquarters was originally located.
3. List the organs of ECOWAS.
4. Explain any three problems of ECOWAS.
5. State four aims of the Niger Basin Commission.

Assignment

List any five aims and objectives of ECOWAS, then explain how different currencies and political instability affect the community.