Donald Duke Claims Nigeria Spends More on Oil Security Than Production Costs

Donald Duke, a presidential candidate for the People’s Redemption Party, has stated that Nigeria spends more on securing its crude oil than on extracting it. He made these comments during an interview with ARISE NEWS on Thursday.

Duke explained that the costs of security and poor infrastructure have raised production expenses, which in turn affects petrol prices. He said that while the actual cost to produce a barrel of crude oil in Nigeria is between $12 and $15, security costs can push the total to as high as $45.

He emphasized that the government should focus on improving the productivity of its citizens by addressing these rising costs. Duke pointed out that energy is crucial for economic productivity and questioned why Nigerians pay high prices for petrol despite the country’s oil resources.

In his proposal, Duke suggested reducing the price of petrol to ₦300 per litre, rather than ₦200 as previously mentioned. He believes that revenue from other petroleum products could help achieve this price reduction. However, he acknowledged that this target may no longer be feasible due to existing commitments made by the government.

Duke also proposed sourcing domestic crude oil and purchasing additional supplies from local producers to cut transportation costs. He suggested a contract-refining model where the government would supply crude oil to a refinery, pay a processing fee, and keep the refined products.

To combat the issue of smuggling, Duke proposed dyeing fuel to help identify products that are illegally transported across borders. He argued that the government should find solutions rather than punish citizens for border management issues.