Nigeria Spends More on Oil Security Than Production, Says Donald Duke

Former Cross River State Governor Donald Duke has argued that Nigeria spends too much on securing crude oil, with security costs and deteriorating infrastructure adding significantly to the cost of producing petroleum.

Speaking during an interview with ARISE News, Duke said crude oil production in Nigeria could cost between $12 and $15 per barrel, but security expenses and poor infrastructure can push the total cost much higher. He argued that reducing these expenses would help lower petrol prices and ease pressure on households and businesses.

Duke also clarified his proposal to reduce petrol prices to ₦300 per litre, rather than ₦200. He acknowledged, however, that the target might no longer be realistic because of existing crude oil commitments and the cost of obtaining supplies.

As an alternative, he suggested sourcing more crude from producers operating in Nigeria, reducing transportation expenses and adopting contract-refining arrangements. Under such a model, the government would supply crude to a refinery, pay an agreed processing fee and retain the refined products.

Duke also proposed colouring locally sold fuel to help authorities identify petroleum products allegedly smuggled across Nigeria’s borders. His comments have renewed debate about oil production costs, fuel pricing and the measures needed to make energy more affordable for Nigerians.

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