Political economist and Nigeria Democratic Congress chieftain, Professor Pat Utomi, has stated that the party's Presidential Candidate, Peter Obi, aims to strengthen the naira to N500 against the dollar. This move is part of the party's economic agenda to ease inflation, reduce poverty, and improve Nigerians' purchasing power. Utomi believes that this exchange rate target will significantly reduce the prices of food items and other essential commodities.
According to Utomi, strengthening the naira from about N1,350 to N500 per dollar will help lower the cost of living. He projected that a loaf of sliced bread currently selling for N1,750 could fall to N800, while the price of a 50kg bag of imported rice could drop from N55,000 to N27,500. These projections are part of the party's economic programme aimed at improving market competitiveness.
Utomi also estimated that a medium-sized tuber of yam would decline from N2,400 to N1,200, while a 50kg bag of maize could fall from N75,000 to N37,500. Additionally, he projected that a bunch of plantain could drop from N2,500 to N1,250, while the price of a whole chicken could reduce from N7,000 to N3,500. These reductions are expected to improve the living conditions of Nigerians.
The NDC chieftain further projected that a dozen eggs would cost N1,150, down from N2,300, while a painter of garri could fall from N1,300 to N650. He also listed petrol and cement among the commodities expected to become cheaper under the proposed economic programme. These changes aim to uplift the 140 million Nigerians currently experiencing multi-dimensional poverty.
Nigeria's currency was significantly devalued in 2023 after the administration of President Bola Tinubu introduced reforms that unified the exchange rate windows and allowed market forces to play a greater role in determining the value of the naira. As of October 30, the naira traded at N1,346.86 per dollar at the official Nigerian Foreign Exchange Market, while the dollar exchanged for about N1,385 in the parallel market.
Utomi explained that the party's exchange rate target offers a direct, multi-faceted approach to curbing inflation, reducing poverty, and lowering the cost of living. He added that the proposal reflects the party's intention to improve living conditions, particularly for Nigerians facing multidimensional poverty. The party's economic agenda also includes investments in security, electricity, and road infrastructure.
The proposed economic programme aims to improve market competitiveness through structural reforms. Utomi emphasized that targeting a strategic appreciation of the exchange rate by reasonably strengthening it from ₦1,350/$ to ₦500/$ is a winning strategy. The party's economic plan seeks to address the country's economic challenges and improve the well-being of its citizens.
Key points
- The Nigeria Democratic Congress plans to strengthen the naira to N500 against the dollar if Peter Obi is elected.
- The proposed exchange rate target aims to ease inflation, reduce poverty, and improve Nigerians' purchasing power.
- The party's economic programme includes investments in security, electricity, and road infrastructure, as well as structural reforms.
