Lai Omotola, the CEO of Confederated Facilitators Limited (CFL) Group of companies, has asserted that the increasing exchange rate between the dollar and the naira, coupled with Nigeria's economic situation, is not being shaped by market forces but by a group of wealthy elite businessmen he refers to as "market cabals." He expressed these views during a media event held by his company in celebration of its 25th anniversary.
Omotola explained that these elite individuals primarily engage in currency speculation as their core business. They might own manufacturing plants that require, for example, $10 million in funding, but in many cases, their actual need is much less, perhaps only $1 million. However, they acquire the full $10 million, send $1 million to their suppliers, convert the remaining $9 million into Naira, and sell it to the black market, thus profiting significantly.
He went on to highlight the attractiveness of this business, likening it to being more lucrative than cocaine. This speculative activity, according to Omotola, has contributed to the naira's depreciation to nearly N1,200 per dollar.
Omotola pointed out that Nigeria's economy is not governed by genuine market forces but by these market cabals who manipulate the currency. He emphasized that the regulation of the currency has shifted from the hands of the Central Bank of Nigeria to these cabals, who control the supply of dollars and, in turn, influence the exchange rate.
In conclusion, he identified the key factors behind the need for dollars in Nigeria as corruption and speculation, and he raised concerns about the difficulty of addressing this behavioral pattern while these business elites maintain their influence.
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