2027: Obi pledges to retain Tinubu’s naira float policy if elected

The National Democratic Congress presidential candidate for the 2027 election, Peter Obi, has promised that he would retain President Bola Tinubu’s naira float policy if elected.

Obi, however, said he would focus on increasing productivity to strengthen the currency and make it more valuable to Nigerians.

The former Anambra State governor disclosed this in an interview on Arise TV on Thursday.

When asked to name one policy of the Tinubu administration that he would retain if elected president, Obi said, “There’s one – the floating of the Naira. I’m not going to defend it. But I’m going to put productivity to make it more valuable to the people.”

Obi also warned against allowing ethnic considerations to influence the 2027 elections.

He said, “Our election should not be driven by tribalism.”

The Tinubu administration introduced the naira float in June 2023 as part of broader economic reforms aimed at unifying the foreign exchange market and allowing market forces to determine the currency’s value.

The Central Bank of Nigeria removed restrictions at the Investors and Exporters foreign exchange window, effectively ending the previous system of multiple exchange rates and allowing the naira to trade more freely against the dollar and other major currencies.

The policy followed Tinubu’s inauguration in May 2023 and came shortly after the President suspended the then CBN Governor, Godwin Emefiele.

Tinubu had announced during his inauguration that his administration would unify the country’s multiple exchange-rate system, describing the existing arrangement as a distortion that needed to be addressed.

The implementation of the policy triggered a sharp depreciation of the naira, with the currency moving from below N500 per dollar at the time to levels above N1,000/$ and subsequently crossing N1,500 per dollar at various points.

The foreign exchange reform has remained one of the most debated aspects of Tinubu’s economic policies, with supporters arguing that it was necessary to remove distortions, improve transparency in the foreign exchange market and attract investment.

Obi’s position marks a significant distinction between retaining the floating exchange-rate framework and changing the economic conditions underpinning it.

Rather than reversing the policy, the former Anambra governor said his approach would be to improve productivity so that increased domestic production and economic output would strengthen the value of the naira.

Obi has repeatedly advocated a shift from what he describes as a consumption-driven economy to one focused on production, exports and investment.

The former governor, who contested the 2023 presidential election on the platform of the Labour Party, is now seeking the presidency in 2027 on the platform of the NDC.

The 2027 election is expected to place economic management, inflation, exchange-rate stability, unemployment, and the rising cost of living among the major issues likely to shape the campaigns of the presidential candidates.