Political economist and Nigeria Democratic Congress (NDC) chieftain Professor Pat Utomi has proposed strengthening the naira to N500 per dollar, projecting that the exchange rate target, alongside infrastructure investment and structural reforms, could cut the prices of several staple foods by as much as 50%.

Utomi outlined the proposal in a statement published on his X account, presenting exchange-rate appreciation as part of the party’s manifesto and a strategy to reduce inflation, poverty and the cost of living.

He argued that a stronger naira, combined with improvements in security, electricity and road infrastructure, would lower production and distribution costs while improving competition across markets.

Utomi targets N500/$ exchange rate

Utomi said the NDC’s manifesto would seek to strengthen the naira from around N1,350/$ to N500/$, describing the proposal as a strategy for easing economic pressures on households.

• “We are convinced that targeting a strategic appreciation of the exchange rate by reasonably strengthening it from N1,350/$ to N500/$ as part of our manifesto is a winning strategy,” he said.

He argued that the proposed exchange-rate target, supported by infrastructure improvements and structural reforms, would help reduce the cost of imported goods and ease pressure on domestic prices.

Utomi also linked the proposal to poverty reduction, saying it demonstrated the party’s plan to improve living conditions for Nigerians experiencing multidimensional poverty.

However, the projected exchange rate and price reductions are manifesto targets rather than established outcomes. Achieving them would depend on several factors, including foreign exchange supply, domestic production capacity and the cost of transporting and distributing goods.

Food prices could fall by half

As part of the proposal, Utomi projected that prices of selected food items and other commodities could decline by approximately 50% under the party’s proposed economic measures.

His estimates include the following:

• A loaf of sliced bread falling from N1,750 to N800.
• A 50kg bag of imported rice declining from N55,000 to N27,500.
• A medium tuber of yam dropping from N2,400 to N1,200.
• A 50kg bag of maize falling from N75,000 to N37,500.
• A bunch of plantain declining from N2,500 to N1,250.
• A whole chicken dropping from N7,000 to N3,500.
• A dozen eggs falling from N2,300 to N1,150.
• A painter of garri declining from N1,300 to N650.

The proposal also includes lower prices for petrol and cement, which Utomi linked to the broader objective of reducing living and production costs.

The projections are based on the party’s proposed economic approach and should not be interpreted as guaranteed price reductions. Exchange-rate changes may influence the cost of imported inputs, but domestic prices are also affected by energy costs, transport, security challenges, supply conditions and other production expenses.

Utomi’s post did not provide detailed calculations showing how the exchange-rate target would be achieved or how the projected reductions would translate across different commodities.

Nigerians question FX policy and funding

The proposal prompted reactions on X, with users questioning whether Utomi intended to peg the naira, how such a policy would be funded and what its implications could be for public finances.

Dttech (@tundeph), in a post on X, asked what foreign exchange policy would support the target and whether it would involve pegging the naira.

Code name: Black Wolf (@babaottee), in another post on X, argued that the proposal could amount to price control in the foreign exchange market and questioned its sustainability, warning against a return to policies that had previously failed in Nigeria.

Other users focused on the potential cost of defending the naira at N500/$.

• Big A.A.S (@smart_money7) questioned whether the government could maintain infrastructure spending, pay salaries and fund public services while defending the proposed exchange rate in a post on X.
• Adedamola (@damola017) asked how an exchange-rate subsidy would be financed and whether it could lead to a depletion of foreign reserves in a post on X.
• Usman Baba (@UsmanBaba09) warned that converting dollar-denominated oil earnings at N500/$ instead of N1,350/$ could reduce the naira value of revenue available to the three tiers of government in a post on X.

The reactions highlight concerns about the relationship between exchange-rate policy, the cost of imports, government revenue and the availability of foreign currency. Utomi’s post, however, did not provide a detailed financing framework for the proposed target.

Naira, inflation and reserves

Utomi’s proposal comes amid recent improvements in some of Nigeria’s key economic indicators.

Nairametrics earlier reported that the naira strengthened against the US dollar for a third consecutive trading session on October 28, 2026, closing at N1,349/$ at the Nigerian Foreign Exchange Market, compared with N1,357/$ a day earlier.

Nigeria’s external reserves have also crossed $55 billion, reaching their highest level in more than 18 years, according to the Central Bank of Nigeria, as previously reported by Nairametrics.

Meanwhile, headline inflation eased to 14.63% in September 2026, down from 15.39% in August, marking another monthly decline. Food inflation stood at 19.59% year-on-year in September 2026, compared with 20.16% in September 2025, according to the National Bureau of Statistics.

These figures provide context for Utomi’s proposal, but they do not establish that the naira can appreciate to N500/$ or that food prices would consequently fall by half.