Pat Utomi Proposes N500/$ Exchange Rate, Food Prices May Drop 50%

Pat Utomi Proposes N500/$ Exchange Rate, Projects Up to 50% Food Price Reduction

Political economist Pat Utomi has proposed strengthening the naira to N500 per dollar, projecting that the move could reduce staple food prices by up to 50%. The plan is part of the Nigeria Democratic Congress manifesto to ease...

ValueDrive Post Editor Oct 30, 2026 2 min read

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Introduction

Political economist and Nigeria Democratic Congress chieftain Professor Pat Utomi has put forward a bold proposal to strengthen the naira against the US dollar, targeting an exchange rate of N500 per dollar. The plan aims to significantly reduce the cost of living by lowering prices of essential food items across Nigeria.

What Happened

Utomi announced the proposal via his X account, linking it to the NDC’s manifesto and a broader strategy to combat inflation, poverty, and economic pressure on households. He argued that appreciating the naira from approximately N1,350 per dollar to N500, combined with infrastructure improvements and structural reforms, would lower production and distribution costs for key commodities.

Why This Matters

The proposal comes amid mixed economic signals in Nigeria. Recent data shows the naira has strengthened for three consecutive trading sessions, external reserves have crossed $55 billion, and headline inflation eased to 14.63% in September 2026. While Utomi’s price projections are manifesto targets rather than guaranteed outcomes, they highlight the potential impact of exchange-rate policy on everyday household expenses.

Key Takeaways

Utomi projects that staple food prices—including a loaf of sliced bread, 50kg imported rice, medium yam, 50kg maize, plantain, whole chicken, eggs, and garri—could drop by approximately 50% under the proposed economic measures.
Specific examples include bread falling from N1,750 to N800, rice from N55,000 to N27,500, and yam from N2,400 to N1,200.
The plan also aims to reduce prices of petrol and cement, though the projections depend on foreign-exchange supply, domestic production capacity, and transport and distribution costs.
Achieving the N500/$ target would require sustained foreign-exchange inflows, improved security, stable electricity, and efficient road infrastructure.

Conclusion

Utomi’s exchange-rate proposal underscores the ongoing debate over Nigeria’s monetary policy and its direct effect on food affordability and household budgets. Whether the N500/$ target materializes depends on complex economic factors, but the proposal has sparked conversation about the role of currency strength in reducing the cost of living.