Donald Duke, a former governor of Rivers State, and presidential candidate of the People’s Redemption Party (PRP) for the 2027 elections has described the crude oil for product swap policy as “the biggest scam that has been perpetrated in this country”
Duke spoke at the 66th Annual General Conference of the Nigerian Bar Association (NB) held in Port Harcourt, Rivers State, on Monday.
He explained that crude oil produced several petroleum products, including Premium Motor Spirit, diesel and aviation fuel, stressing that the country should not compare the cost of petroleum products produced from its own natural resources with prices in countries that import their raw materials.
A crude-for-product swap is an agreement where a country or state oil company exchanges raw crude oil directly for refined petroleum products, like petrol or diesel, without using cash.
He questioned the transparency of the arrangements previously used by the country, stating, “When we were doing swaps, we said about 300,000 barrels of oil in exchange for petrol; no one ever mentioned the by-products. No one knows what went where. That’s why I believe it’s the biggest scam that has been perpetrated in this country. I don’t believe there’s a subsidy,” he said.
He illustrated his argument with the example of a farmer who produces 10 tonnes of maize annually but consumes one tonne to feed his family and workers.
“If you are a farmer, you produce 10 tonnes of maize annually, and you consume one to keep your workers going, to keep your family going, are you subsidising your family?” he asked.
On fuel subsidy, Duke said the country could not remove a subsidy that, in his view, did not exist.
“You can’t remove what doesn’t exist. I postulate there is nothing like fuel subsidy,” he said.
The former Cross River State governor argued that Nigeria should take advantage of its crude oil resources to make petroleum products affordable and boost productivity.
Duke maintained that energy was central to economic productivity and should therefore be made readily available to Nigerians.
“For me, the overall essence of government is productivity of its people. So if that is the vision or the mission statement of government, all the factors that have to do with productivity must be made abundantly available,” he said.
He also rejected the argument that cheap petrol would encourage smuggling into neighbouring countries, asking whether Nigerians should be made to pay higher prices because of the government’s inability to police the borders.
“Are you going to punish your citizens due to your inability to police your borders?” Duke asked.
He suggested that petrol could be dyed a distinctive colour and traced to prevent its movement across the borders.
Duke described what he termed the country’s approach to administration as “mental laziness,” arguing that energy remained a critical driver of national development.
(Ripples)
