*Prof. Pat Utomi, a renowned political economist, in a recent interview describes the economic policies of President Muhammadu Buhari’s administration as unfriendly to Nigerian consumers, and ‘not economic-growth oriented’

Isola Moses | ConsumerConnect

Prof. Pat Utomi, a political economist, has described the economic policies of  President Muhammadu Buhari administration as “not people-friendly” and “not economic-growth oriented”.

Prof. Utomi, a political economist, who said this while featuring in Channels TV programme Wednesday night, noted that the exchange rate of the Naira, Nigeria’s national currency, to the US Dollar may rise above $1 to N1,000 if some “dramatic” measures are not taken by the Federal Government on Nigeria’s fiscal and economic policies.

Prof. Pat Utomi     Photo: Channels TV 

The expert as well stated said the ways and means funding option of the Federal Government through the Central Bank of Nigeria (CBN) has become a routine violation of fiscal responsibility laws in the country’s economy.

Utomi said: “If you continue to generate or create money without creating value, the consequence is inflation and exchange rate will be collapsing, and will just multiply.”

On Nigeria’s inflation rate

The West African country’s inflation rate as of end of November 2022  is 21.47 percent.

Likewise, the Investors and Exporters (I&E) window of the Foreign Exchange (Forex) market, $1 exchanges for N450.03 as of January 4, 2023, whereas a US Dollar exchanges for over N700 in the parallel market, according to report.

Utomi, nonetheless, opined that unless some dramatic economic steps are taken, a single Naira may exchange for over N1,000.

He further stated: “I can tell you, God forbid, if we don’t do something dramatic, the effect of this budget is that the exchange rate will go past 1,000; that is the direct effect of this budget and you are going to see inflation probably go up to 50 percent if some new dramatic changes are not made.”

It is also noted the political economist said this in regard to the 2023 Appropriation Act totalling N21.83 trillion, which President Buhari signed into law earlier in the week.

The 2023 “weak (2023) budget” will lead to loss of jobs, inflation, and unimaginable economic hardship, stated Utomi.

He, therefore, described the economic policies of the Buhari administration as “not people-friendly” and “not economic-growth oriented”.

But he equally blamed leadership at the Federal level of governance, and ‘dysfunctional’ state governors for Nigeria’s economic woes.

Utomi insisted that one of the ways forward for Nigeria is for the Federal Government to fix the Civil Service in the country.