The exchange of crude oil for products is the biggest scam perpetrated by the Nigerian government – Donald Duke

Donald Duke, former governor of Rivers State, and presidential candidate of the People’s Redemption Party (PRP) for the 2027 elections described the policy of exchanging crude oil for products as “the biggest scam that has been perpetrated in the 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 produces several petroleum products, including Premium Motor Spirit, diesel and aviation fuel, and stressed that countries should not compare the costs of petroleum products produced from their own natural resources with prices in countries that import their raw materials.

A crude oil-for-product swap is an agreement in which a country or state oil company exchanges raw crude oil directly for refined oil products, such as gasoline or diesel, without using cash.

He questioned the transparency of the arrangements previously used by the country, stating, “When we did the exchange, we said about 300,000 barrels of oil in exchange for gasoline; no one ever mentioned the byproducts. No one knew what was going where. That’s why I believe this is the biggest fraud that has been perpetrated in this country. I don’t believe there were subsidies,” he said.

He illustrates his argument with the example of a farmer who produces 10 tons of corn annually but consumes one ton of corn to feed his family and workers.

“If you are a farmer, you produce 10 tons of corn every year, and you consume one corn to keep your workers alive, to keep your family alive, are you subsidizing your family?” he asked.

Regarding fuel subsidies, Duke said the country cannot eliminate subsidies that he believes do not exist.

“You can’t eliminate what doesn’t exist. I don’t think there’s anything like fuel subsidies,” he said.

The former governor of Cross River State has argued that Nigeria must harness its crude oil resources to make petroleum products affordable and increase productivity.

Duke stated that energy is critical to economic productivity and must therefore be made available to Nigerians.

“For me, the essence of the government as a whole is the productivity of its people. So if that is the government’s vision and mission, then all factors related to productivity must be available in abundance,” he said.

He also rejected the argument that low petrol prices would encourage smuggling to neighboring countries, and questioned whether Nigerians should be forced to pay higher prices because of the government’s inability to police the borders.

“Are you going to punish your citizens for your inability to police the borders?” Duke asked.

He suggested that petrol could be dyed a distinctive color and tracked to prevent its movement across borders.

Duke described what he called the government’s approach to administration as “mental laziness,” arguing that energy remains an important driver of national development.