Fuel Subsidy Is ‘Biggest Scam’ — Donald Duke Says Petrol Can Sell for N200/Litre

Former Cross River State governor Donald Duke has described Nigeria’s fuel subsidy debate as a “scam,” insisting that petrol could be sold at around N200 per litre if the country fully exploits its crude oil and other energy resources.

Duke, who was the presidential candidate of the Peoples Redemption Party (PRP), made the argument amid the ongoing debate involving President Bola Tinubu, former Vice President Atiku Abubakar and former Anambra State governor Peter Obi over petrol subsidy and the rising cost of living.

President Tinubu scrapped the petrol subsidy in May 2023, arguing that the move would free funds for development. Atiku has called for a targeted subsidy, while Obi has supported the removal of the subsidy on the condition that the savings are transparently channelled into productive and social investments.

But Duke said the country’s huge crude oil resources should make the issue of petrol subsidy unnecessary.

“Look, I don’t believe there’s any subsidy in fuel,” he said.

According to him, crude oil produces several by-products, including petrol, diesel, kerosene and aviation fuel, which Nigeria should be able to leverage to provide cheaper energy domestically.

“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.”

Duke argued that Nigeria’s energy challenges were particularly difficult to understand given the country’s wide range of natural resources.

“You’re an energy-blessed country,” he said. “You have all known forms of energy existing in Nigeria—from the crudest, which is human labour, to hydrocarbons, solar, hydro, uranium and now lithium.”

“You have all those things. Why are we still energy-poor? Because the political will is not there. But even beyond the political will, we’re not thinking through this.”

He also raised concerns over the continued flaring of natural gas, saying the practice represented a major waste of a resource that could help address Nigeria’s energy shortages.

“We easily flare two billion cubic feet of gas a day,” Duke said. “That is equivalent to 20 million litres of diesel.”

“If you had a turbine to power all of Africa, it would not consume 20 million litres of diesel daily.

“So, it’s akin to the abundance of water while the fish is thirsty.”

The former governor also dismissed comparisons between Nigerian and American petrol prices, arguing that countries should make use of their own natural resources rather than rely solely on international price benchmarks.

“When I hear excuses like, ‘Oh, it’s cheaper in America,’ or, ‘We’re cheaper than it is in America,’ every country has its own endowments,” he said.

“You’ve got to use what you’ve got to get what you want. We are an energy-blessed country. The people should feel their blessings.”

Duke also questioned Nigeria’s energy policy, pointing to the country’s participation in the West African Gas Pipeline despite its own domestic gas supply challenges.

“You have a West African Gas Pipeline, but you don’t have any self-sufficiency in gas in your country,” he said. “There’s something wrong somewhere. We’re not thinking.”

He said the country’s energy crisis could be addressed if political leaders demonstrated greater commitment and developed better strategies for using Nigeria’s abundant resources.

“Why are we still energy-poor?” Duke asked. “The political will is not there. We’re not thinking through our problems.”

Africans Angle News