Chief Executive Officer of CFL Group and an economic expert, Lai Omotola has urged the Federal Government of Nigeria to take decisive action to tackle the foreign exchange crisis gripping the nation. In a recent statement, Omotola proposed stringent measures, including criminalizing the possession of cash exceeding $100 and implementing a comprehensive cashless policy across select economically vibrant states.
Commending the efforts of the Central Bank of Nigeria (CBN) in addressing the crisis, Omotola emphasized the need for bold steps to stabilize the economy. He suggested that President Bola Tinubu should issue an executive order to ban all cash transactions involving foreign exchange, making bank-to-bank transactions the sole method for handling dollars.
Under Omotola’s proposal, a 90-day amnesty period would be granted for individuals to lodge excess foreign exchange holdings, with strict penalties for those found in violation thereafter. Additionally, he recommended activating the whistleblower policy to incentivize citizens to report instances of hidden foreign currency.
Speaking to THISDAY in Lagos, Omotola outlined the potential impact of his plan, predicting a significant drop in foreign exchange rates within a month if implemented rigorously. He emphasized the importance of accountability in all dollar transactions, advocating for thorough scrutiny to ensure legitimacy.
Furthermore, Omotola proposed transitioning select states, including Lagos, Kano, Kaduna, Rivers, Enugu, and the Federal Capital Territory, to a 100% cashless system. He suggested capping cash holdings within these regions at N50,000 and halting the printing of new naira notes to prevent inflationary pressures.
Omotola expressed confidence that these measures, if executed meticulously, could lead to a 50% appreciation of the naira within 30 days, with exchange rates potentially reaching between N700 and N800 per dollar. He emphasized the urgency of addressing the root causes of the currency devaluation and asserted that his proposed solutions could pave the way for long-term economic stability.
As Nigeria grapples with the challenges posed by the foreign exchange crisis, experts like Omotola continue to advocate for proactive measures to safeguard the nation’s economy and foster sustainable growth.
