The Chairman of CFL Group of Companies, Lai Omotola, has pinpointed the exchange rate as the primary issue affecting Nigeria’s economy. “The Nigerian economy has only one problem. If that problem is fixed, then we don’t have any other. The problem is the exchange rate,” he emphasized.
During a press conference marking the 26th anniversary of CFL Group, Omotola stated that stabilizing the exchange rate at N350 to a dollar would lead to an automatic reduction in petrol prices and other commodities, thereby alleviating inflation and interest rates. “If today, our exchange rate is N500 to a dollar, petrol will immediately come down, and prices of other commodities will come down,” he explained.
He recalled having warned the Central Bank of Nigeria (CBN) governor about the anticipated fall of the naira, which has now plummeted to around N1,800 to a dollar. “Last year, I spoke about the exchange rate and I warned the CBN governor about the impending fall of the naira. Today, it is about N1,800 to a dollar,” he stated.
Omotola criticized the CBN’s current measures as merely cosmetic, arguing that they fail to address the underlying causes of the naira’s decline. “I kept saying what the CBN governor was doing was just cosmetics, which is not the major thing to do. You can’t allow people to be speculating on our currency as a means of survival,” he stressed.
While acknowledging the CBN governor’s vital role in resolving the economic crisis, he expressed doubts about the capabilities of current cabinet members to effectively tackle the issue. “The present economic challenge cannot be solved by anyone among the cabinet members. No one among them can boastfully say I have what it takes to solve this problem,” he noted.
Drawing comparisons with the medical and aviation sectors, Omotola called for decisive action from leaders. “If you meet a medical doctor, once he diagnoses what is wrong with you, he will give you a prescription and tell you I expect that you feel well within a week. If you enter into a plane, the pilot will tell you within this flight, I expect to be bumpy and advise that you put on your seat belt,” he illustrated.
He further insisted that anyone unable to diagnose, prescribe, and assure the public of improvement within a specific timeframe should not hold office. “We can’t have professionals sitting down and dishing out rhetoric,” he added.
To achieve sustainable economic growth, Omotola advocated for a 10-year plan targeting four critical areas: Agriculture, Health, Education, and Infrastructure. “We must be able to say we want to conquer four things – Agriculture, Health, Education, and Infrastructure – and we are drawing up a 10-year plan that no politician or government will distort,” he proposed.