Political economist and Nigeria Democratic Congress (NDC) chieftain, Professor Pat Utomi, has proposed strengthening the naira to N500 per dollar, projecting that the policy could reduce the prices of essential food items by as much as 50 per cent.
Utomi said the exchange-rate target, alongside investments in infrastructure and structural economic reforms, would help reduce inflation, tackle poverty and ease the cost-of-living burden on Nigerians.
He outlined the proposal in a statement published on his X account, describing the proposed exchange-rate appreciation as a central component of the NDC’s economic manifesto.
According to him, strengthening the naira from its current level of approximately N1,350 to N500 per dollar would reduce the cost of imported goods and lower production and distribution expenses.
He argued that improvements in electricity supply, road infrastructure and national security would further reduce business operating costs and improve competition across markets.
Utomi said the proposed measures were intended to improve household purchasing power and address the economic difficulties facing Nigerians, particularly those experiencing multidimensional poverty.
Under the proposal, he projected that a loaf of sliced bread currently selling for N1,750 could fall to N800, while a 50kg bag of imported rice could decline from N55,000 to N27,500.
Similarly, the price of a medium-sized tuber of yam could drop from N2,400 to N1,200, while a 50kg bag of maize could fall from N75,000 to N37,500.
Other projections include a reduction in the price of a bunch of plantain from N2,500 to N1,250, a whole chicken from N7,000 to N3,500 and a dozen eggs from N2,300 to N1,150.
A painter of garri, according to his estimates, could decline from N1,300 to N650.
The proposal also envisages lower prices for petrol and cement as part of a broader strategy to reduce household expenditure and production costs.
However, the projected exchange rate and commodity price reductions remain policy targets rather than established economic outcomes.
Achieving the N500-to-dollar target would depend on foreign exchange availability, domestic production capacity, investment flows and the sustainability of the proposed economic measures.
Utomi’s proposal has also generated questions about the monetary and fiscal policies required to support such an appreciation, including whether it would involve pegging the exchange rate and how the government would finance the intervention.
Some commentators have questioned the potential implications for foreign reserves, government revenue and the sustainability of maintaining the proposed exchange rate.
In particular, concerns have been raised about the naira value of dollar-denominated oil earnings if converted at N500 rather than prevailing market rates.
The proposal comes amid recent improvements in some economic indicators, including the naira’s recovery to N1,349 per dollar on October 28 and Nigeria’s external reserves crossing $55 billion.
Headline inflation also declined to 14.63 per cent in September 2026, while food inflation stood at 19.59 per cent year-on-year.
Nevertheless, the extent to which exchange-rate appreciation would translate into lower food prices would also depend on domestic supply, transportation costs, energy prices, security and other factors affecting agricultural production and distribution.
Utomi’s projections therefore present an economic policy ambition whose feasibility will depend on the details of its implementation and financing.
