Lai Omotola, the Group Managing Director of CFL Group, has called on President Bola Tinubu to consider implementing an executive order prohibiting dollar cash transactions in a bid to curb further depreciation of the naira.
Omotola expressed concerns that despite various economic policies introduced by the Federal Government and the Central Bank of Nigeria (CBN), the local currency continues to lose its value.
Addressing the media on the topic “How to Save the Naira and Build a Robust Economy,” Omotola emphasized the need for sincere contributions from Nigerians to help salvage the economy for the collective good of the nation.
“It is evident that our economy is facing significant challenges. The combination of fuel deregulation and the floating of the naira has led to the depreciation of our economy. Presently, we are grappling with a foreign exchange crisis and food scarcity,” Omotola remarked.
“To safeguard our naira, we propose that the President issues an executive order banning all cash transactions involving dollars across Nigeria. All dollar transactions should be conducted through banks, and individuals should be limited to holding a maximum of $100 in cash. Any amount exceeding this limit should be forfeited to the Federal Government,” he suggested.
Omotola also advocated for a complete prohibition of street vending of dollars, proposing amnesty for individuals making cash dollar payments for the next 90 days without any investigation by security agencies.
“While dollar cash deposits should not be subject to investigation, every dollar payment made through banks should undergo scrutiny,” he added.
Additionally, Omotola recommended the implementation of a cashless policy in states with high economic activities, such as Lagos, Kano, Kaduna, Rivers, Enugu, and Abuja, where individuals would be limited to holding a maximum of N50,000 in cash.
Highlighting the importance of reviving the Whistleblower Act, Omotola emphasized the need for rewarding individuals who provide information to the government about hidden dollars, thereby incentivizing transparency and accountability.
“If these recommendations are fully adopted, we anticipate a 50% appreciation of the naira within the next 30 days, bringing it to a range of between N700 and N800. By the end of the year, we expect the true value of the dollar to the naira to be established,” Omotola concluded.
The Central Bank of Nigeria, in collaboration with the Federal Government, continues to explore various strategies to address the challenges facing the naira. As of the latest reports, the parallel market exchange rate stood at around N1,500 per dollar, reflecting a reduction from the previous rate of N1,800.
