Lai Omotola, the Group Managing Director of CFL Group, has urged President Bola Tinubu to enact an executive order banning dollar cash transactions to salvage the naira from further depreciation.
Expressing concern over the continual devaluation of the naira despite various economic policies by the Federal Government and the Central Bank of Nigeria, Omotola emphasized the need for sincere contributions from the masses to improve the country’s economy.
During a media briefing themed ‘How to Save the Naira and Build a Robust Economy,’ Omotola proposed the signing of an executive order to outlaw all cash dollar transactions nationwide. He suggested that all dollar transactions should be conducted solely between banks, limiting individual and foreign cash holdings to a maximum of $100, with any excess automatically forfeited to the Federal Government.
Additionally, Omotola recommended a ban on street vending of dollars, advocating for a 90-day amnesty period for those making dollar cash payments, exempt from scrutiny by security agencies. However, he proposed rigorous scrutiny for dollar payments made through banks.
Furthermore, Omotola suggested implementing 100% cashless transactions in states with high economic activities, such as Lagos, Kano, Kaduna, Rivers, Enugu, and Abuja, with a maximum cash holding limit of N50,000.
He also urged the Federal Government to revitalize the Whistleblower Act, offering rewards to individuals disclosing hidden dollars and incentivizing transparency.
Omotola expressed confidence that if these recommendations were fully executed, the naira could appreciate 50% within 30 days, potentially reaching between N700 and N800. He projected that the true value of the dollar to naira exchange rate would be evident by year-end.
Despite the efforts of the Central Bank of Nigeria and the Federal Government, the naira’s value continues to fluctuate, with a dollar being sold at around N1,500 in the parallel market as of Sunday, reflecting a reduction from N1,800 recorded at the close of business on Friday.
The suggestions put forward by Omotola aim to address the root causes of the naira’s depreciation and foster stability in Nigeria’s economy.
