Pat Utomi, a political economist and chieftain of the Nigeria Democratic Congress (NDC), says Peter Obi, the party’s presidential candidate, will strengthen the naira to N500 per dollar if elected president in 2027.
Utomi said the proposed exchange rate target is part of the
economic agenda for Obi’s presidential campaign.
In a post on X, the political economist said strengthening
the naira from N1,350 to N500 would help curb inflation, reduce poverty and
improve the purchasing power of Nigerians.
He said the proposed exchange rate adjustment would be
complemented by investments in security, electricity and road infrastructure,
alongside structural reforms to improve market competitiveness.
Utomi projected that the proposed measures could
significantly reduce the prices of essential commodities.
He said the price of a loaf of sliced bread could drop from
N1,750 to N800, while a 50kg bag of imported rice could decline from N55,000 to
N27,500.
He also projected that a medium-sized tuber of yam would
fall from N2,400 to N1,200, while a 50kg bag of maize could drop from N75,000
to N37,500.
According to him, the price of a bunch of plantain could
decline from N2,500 to N1,250, while whole chicken could drop from N7,000 to
N3,500.
He further projected that a dozen eggs would fall from
N2,300 to N1,150 and a painter of garri from N1,300 to N650.
Utomi also listed petrol and cement among the commodities
expected to become cheaper under the proposed economic programme.
“We are convinced that targeting a strategic appreciation of
the exchange rate by reasonably strengthening it from ₦1,350/$ to ₦500/$ as
part of our manifesto is a winning strategy,” he said.
“It offers a direct, multi-faceted approach to curbing
inflation, reducing poverty, and lowering the cost of living.”
He said the proposal demonstrate the party’s plan to improve
the living conditions of Nigerians, particularly those experiencing
multi-dimensional poverty.
“It clearly demonstrates our concrete plan to uplift the 140
million Nigerians currently experiencing multi-dimensional poverty,” he said.
However, Utomi did not specify the timeline for achieving
the proposed exchange rate target or outline the monetary and fiscal measures
required to sustain the projected appreciation of the naira.
As of Friday, the naira was trading at N1,346.86 per dollar
at the official Nigerian Foreign Exchange Market (NFEM), while the dollar sold
for about N1,385 in the parallel market.
This means the proposed N500 exchange rate by the NDC would
require the naira to appreciate by about 63 percent against the dollar at the
official market rate.
President Bola Tinubu of the All Progressives Congress (APC)
sent the exchange rate spiralling in 2023 after implementing a raft of reforms
in quick succession. Prices of goods and services soon hit the roof as a
consequence.
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