Peter Obi will strengthen exchange rate to N500/$1 if elected president – Utomi

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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