Donald Duke, the People's Redemption Party presidential candidate, has said Nigeria spends more on securing crude oil than on extracting it. During an interview, Duke argued that while the actual production cost of crude in Nigeria ranges between $12 and $15 per barrel, security costs and dilapidated infrastructure push the total to between $25 and $45. He noted that the Nigerian National Petroleum Company has stated it is trying to reduce the cost to $20 a barrel.
Duke called on the government to prioritise reducing the cost of essential goods and services by tackling factors that increase production expenses. He highlighted energy as a critical factor in economic productivity, questioning why Nigerians pay high petrol prices despite the country producing between 1.7 and 1.8 million barrels daily. Duke also clarified that his earlier proposal aimed to reduce petrol prices to ₦300 per litre, not ₦200, by using revenue from other petroleum products.
The former Cross River State governor outlined a pricing model that accounts for refining costs of $10 per barrel and transportation costs of $38 per barrel, totalling $48. He acknowledged that the ₦300 target may no longer be achievable due to crude oil commitments made by the previous administration, but proposed that blending available domestic crude with purchases from Nigerian producers could still substantially reduce prices to below current levels.
Duke rejected arguments that lower domestic petrol prices would encourage smuggling across Nigeria's borders. He proposed that the government could dye fuel to identify petroleum products exported illegally, allowing security agencies to trace smuggled fuel to neighbouring countries and take action through international cooperation.