Utomi targets N500/$ exchange rate, projects 50% drop in food prices

Political economist Professor Pat Utomi has suggested that strengthening Nigeria's currency, the naira, to N500 per dollar could slash the prices of essential foods by up to 50%. The proposal, part of the Nigeria Democratic Congress (NDC) manifesto, aims to reduce inflation, poverty, and the cost of living. Utomi believes that a stronger naira, bolstered by better security, electricity, and road infrastructure, would lower production and distribution costs, as well as encourage competition in markets.

He stated that the NDC's manifesto aims to raise the naira from approximately N1,350/$ to N500/$, arguing that this exchange-rate target, coupled with infrastructure improvements and structural reforms, would ease economic pressures on households and help alleviate multidimensional poverty. However, achieving these projections is contingent on factors such as foreign exchange supply, domestic production capacity, and the cost of transporting and distributing goods.

Utomi also projected lower prices for petrol and cement, which would contribute to the reduction in living and production costs. The proposal is based on the party's economic approach and should not be viewed as guaranteed price reductions. Recent improvements in key economic indicators, including a strengthening naira and easing headline inflation, support Utomi's proposal, but they do not confirm the feasibility of the naira appreciating to N500/$ or food prices falling by half.