Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke

The presidential candidate of the Peoples Redemption Party (PRP), Donald Duke, has described Nigeria’s fuel subsidy policy as a “scam”, arguing that petrol could sell for about N200 per litre if the country properly harnesses its crude oil, natural gas and other energy resources.

Duke made the statement amid renewed political debate over the future of petrol subsidy in Nigeria, following comments by the presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, who said he would introduce targeted subsidies to cushion Nigerians from the impact of high fuel and transportation costs if elected president in 2027.

Atiku’s position has reignited arguments over the decision by President Bola Tinubu to remove petrol subsidy shortly after assuming office in May 2023. The Tinubu administration has consistently defended the policy, arguing that the former subsidy regime was financially unsustainable and consumed resources that could be channelled into infrastructure, social programmes and other development priorities.

The Federal Government has also rejected calls for a return to the old subsidy arrangement, maintaining that subsidy removal has strengthened public finances and increased the resources available to the three tiers of government.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, recently said the removal of petrol subsidy generated N15.8 trillion in resources for the Federation between June 2023 and December 2025. He said the amount included N5.4 trillion received by the Federal Government and N10.4 trillion shared among state and local governments through the Federation Account.

The government has presented the figures as evidence that subsidy removal has created fiscal space, although critics argue that the policy has also contributed to higher transportation, food and household costs.

Duke, however, questioned the basis of the subsidy argument, saying Nigeria’s natural resource wealth should make it possible to provide affordable petroleum products without relying on an expensive government subsidy system.

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

READ ALSO:

• DSS moves to halt Sowore’s cybercrime trial until after 2027 election
• Kogi Abduction: Kidnappers Demand ₦20m Ransom for Each NYSC Member
• Deadly Ikola clash: Lagos demolishes shanties beneath high-tension lines

“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’s N200 per litre petrol projection is his own assessment of what he believes could be achieved through better management of Nigeria’s energy resources. It does not represent the current pump price or an official pricing projection by the Federal Government or the Nigerian National Petroleum Company Limited (NNPCL).

Petrol prices remain substantially above that level in most parts of the country, although prices vary between locations and marketers.

The former Cross River State governor argued that Nigeria’s problem was not a lack of natural resources but the failure to convert those resources into affordable and reliable energy for citizens and businesses.

“You’re an energy-blessed country,” Duke 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.”

Duke also criticised the continued flaring of natural gas in Nigeria, arguing that a country struggling with electricity shortages should not be wasting a valuable energy resource.

“We easily flare two billion cubic feet of gas a day,” he 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 argument comes at a time when Nigeria is attempting to increase domestic oil refining and reduce its dependence on imported petroleum products.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that domestic refineries supplied billions of litres of petrol during the first seven months of 2026, with the Dangote Petroleum Refinery accounting for a significant share of domestic production.

The increased refining capacity has altered Nigeria’s downstream petroleum market, but domestic production has not completely eliminated the need for imports. Supply levels and petrol prices continue to fluctuate depending on refinery output, crude availability, logistics, international oil prices and other market conditions.

Duke maintained that Nigeria should focus on using its natural endowments to lower production costs rather than relying primarily on international price comparisons.

“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.”

He further questioned Nigeria’s energy strategy, pointing to the country’s participation in the West African Gas Pipeline while domestic industries and households continue to experience inadequate gas and electricity supplies.

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

The PRP candidate argued that Nigeria’s energy crisis could be addressed through stronger political commitment, better infrastructure, increased domestic refining and more effective utilisation of the country’s oil and gas resources.

His position differs from both the Tinubu administration and Atiku’s proposed approach. While the Federal Government maintains that subsidy removal was necessary to protect public finances, Atiku is advocating targeted government intervention to reduce the burden of high energy costs, while Duke argues that Nigeria should use its resource advantage to make energy cheaper without depending on a conventional subsidy regime.

The renewed fuel subsidy debate is expected to remain a major issue ahead of the 2027 presidential election, particularly as political parties and candidates seek to address the effects of high petrol prices on transportation, food prices, businesses and household incomes.

For Duke, the central question is not simply whether Nigeria should restore or retain petrol subsidy, but why a country with vast oil, gas and other energy resources continues to struggle with high energy costs.

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

Fuel subsidy is a scam, petrol can sell for N200/litre – Donald Duke