Lai Omotola, group managing director and chief executive officer of CFL Group of Companies, has asked President Bola Tinubu to ban cash dollar transaction in Nigeria to save the naira.
On Wednesday, the naira tumbled to an all-time low of N1,900/$ at the official market before picking up steam to close at N1,524 at the close of trading; while at the parallel market, it closed at N1,860.
In June 2023, as part of a series of policies to ensure economic recovery, the Central Bank of Nigeria (CBN) announced the unification of all segments of the forex exchange (FX) market into the investors & exporters (I&E) window.
The FX market liberalisation policy saw the devaluation of the naira as the ‘willing buyer, willing seller’ model was introduced.
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Speaking during a press conference on Friday, Omotola said the president must ensure that all dollar transactions should now be bank to bank and street vending of the foreign currency must be put to an end.
The business also urged the federal government to adopt a 100 per cent cashless policy in five and the federal capital territory (FCT).
“It is no longer news to say the state of our economy is in a precarious state. The dual policy of fuel removal and floating of the naira have resulted in depreciating our economy,” Omotola said.
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“Today, there is foreign exchange crisis and food crisis. We are not here to labour time on the problems rather our time will be to proper solution.
“As a business concern that have been in existence for the past 25 years just one year more than our democratic period of 24 years, we have lived 100 percent of all different administration.
“To save our naira, we propose that the president signs an executive order banning all cash dollar transactions across the length and breath of Nigeria. All dollar transactions should now be bank to bank. The maximum cash any citizen and foreigner can hold is 100 dollar. Any amount exceeding this will be automatically forfeited to the federal Government. Total ban of street vending of dollar
“Amnesty should be given to everyone paying dollar cash for the next 90 days and such cash lodgment can not be probed by EFCC nor any security agency. In as much cash dollar deposit can not be probed, every dollar payment from banks will be scrutinised.
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“The following states will go 100 per cent cashless. Lagos, Kano, Kaduna Rivers, Enugu and Abuja. The maximum amount of cash you can hold in these states is N50k.”
Meanwhile, in response to the volatility in the FX market, the CBN and the Office of the National Security Adviser (ONSA) recently entered a partnership arrangement to investigate and penalise those involved in illicit activities within the market.
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