Segun Showunmi, a member of the All Progressives Congress presidential campaign council, challenged a claim by Pat Utomi on Friday. Utomi, a political economist and chieftain of the Nigeria Democratic Congress, had stated that Peter Obi, the NDC presidential candidate, would strengthen the naira to N500 per dollar if elected in 2027.
Utomi made the assertion in a post on X. He said the target formed part of Obi’s economic agenda. “We are convinced that targeting a strategic appreciation of the exchange rate by reasonably strengthening it from ₦1,350/$ to ₦500/$ as part of our manifesto is a winning strategy,” Utomi stated. He added that the move would curb inflation, reduce poverty and lower the cost of living.
In response, Showunmi issued a statement that dismissed the argument. He described Utomi’s position as “an elementary misunderstanding of exchange-rate economics and the mechanism of price formation.”
Furthermore, Showunmi called the claim “a textbook example of confusing political aspiration with economic feasibility.” He stated: “The fundamental fallacy is the assumption that an administrative or politically declared appreciation of the naira from ₦1,350 to ₦500 per dollar will automatically translate into a 50% reduction in the prices of virtually every essential commodity.”
Showunmi also examined a cement illustration in the proposal. He noted that cement priced at $10 would cost N5,000 at an exchange rate of N500 per dollar, not the N2,000 suggested. “To arrive at ₦2,000, the authors have additionally assumed a 60% reduction in the dollar-denominated price. Where is the economic justification for that assumption?” he asked.
Showunmi stressed that exchange rates depend on production, exports and foreign reserves rather than political declarations alone.
