NIGERIA — Former Cross River State governor Donald Duke has dismissed Nigeria’s petrol subsidy debate as a scam, stating that petrol could sell for about N200 ($0.12) per litre if the country properly harnesses its crude oil resources.
Okay News reports that Donald Duke, who was also the presidential candidate of the Peoples Redemption Party, criticized the ongoing debate surrounding fuel subsidies among major political figures. His position comes amid differing views from Nigeria’s President, Bola Tinubu, former Vice President Atiku Abubakar, and former Anambra State governor Peter Obi regarding the future of petrol subsidies and the rising cost of living.
President Bola Tinubu abolished the petrol subsidy in May 2023, defending the policy as a necessary measure to redirect public funds toward national development. Atiku Abubakar has advocated for a targeted subsidy regime, while Peter Obi supported subsidy removal on the condition that the savings are transparently invested in productive and social sectors.
Donald Duke questioned the underlying premise of the debate, arguing that a single barrel of crude oil yields several consequential by-products, including diesel, petrol, kerosene, and aviation fuel. He noted that selling these by-products at commercial rates should allow petrol to be sold at approximately N200 ($0.12) per litre rather than above N1,000 ($0.61).
“Look, I don’t believe there’s any subsidy in fuel,” Donald Duke said. “For a barrel of crude oil, there are about seven by-products. The two consequential ones are diesel and petrol—PMS and AGO—and kerosene, aviation fuel and all those things. You sell them at commercial rates, okay? Work it out. You can almost sell petrol today at N200 a litre, not the N1,000-plus. So that thing about subsidy, I think, is the biggest scam that has been perpetrated, maybe globally.”
He described Nigeria as an energy-rich nation that has failed to translate its vast natural resources into affordable energy due to a lack of political will. He highlighted the daily flaring of two billion cubic feet of natural gas, equating it to 20 million litres of diesel.
Donald Duke also rejected comparing local fuel prices to international benchmarks, asserting that citizens should directly benefit from the country’s natural endowments. He further questioned why Nigeria operates the West African Gas Pipeline while failing to achieve domestic gas self-sufficiency.
