Peter Obi pledges to reform currency market, subsidies
If elected in February, the anti-establishment contender for the president of Nigeria will reform its system of costly subsidies and unify the naira’s numerous exchange rates, according to his manifesto unveiled on Sunday.
The government of Nigeria spends billions of dollars annually on gasoline subsidies and administers various exchange rates that allow some businesses to acquire dollars at favourable exchange rates while the rest of foreign exchange purchasers pay higher rates on the black market.
If elected on February 25, Labour Party candidate Peter Obi stated that he would “demand the transparent liberalisation of the foreign currency market.”
According to his manifesto, he would deconstruct a multiple-rate naira regime that “effectively subsidises a few wealthy individuals while depriving the government of desperately needed income.” Furthermore, “unaffordable subsidies” will be recalculated for the benefit of impoverished Nigerians.
The manifesto, which made no mention of petroleum subsidies, stated that Obi would try to progressively wean the economy off oil by increasing agricultural output and exports and transitioning to alternative energy, while doubling the electrical grid’s capacity to 25,000 MW within two years.
Many of Obi’s supporters were significant participants in rallies against police brutality in 2020 that resulted in the opening fire on unarmed civilians by security personnel. He is also well-liked by younger voters.
While political observers do not expect the 61-year-old to win the election, they believe he may get enough support from those disgruntled with the All Progressives Congress (APC) and People’s Democratic Party (PDP) to play a kingmaker role.
Bola Tinubu, candidate for the APC, and Atiku Abubakar, candidate for the PDP, are both septuagenarian political veterans with substantial power bases.
