Former governor of Cross River State, Donald Duke has described fuel subsidy as the biggest scam.
It was reports that Duke made the claim in a recent interview.
The Peoples Redemption Party (PRP) presidential candidate argued that Nigeria’s crude oil resources could support significantly lower domestic fuel prices if properly managed.
“Look, I don’t believe there’s any subsidy in fuel.
“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.
“You sell them at commercial rates, okay? Work it out. You can almost sell petrol today at ₦200 a litre, not the ₦1,000-plus.
“So that thing about subsidy, I think, is the biggest scam that has been perpetrated, maybe globally,” Duke said.
The former governor also described Nigeria as an energy-rich country that has failed to translate its vast resources into affordable and reliable energy for its citizens.
“You’re an energy-blessed country. 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 said.
Duke said the continued flaring of natural gas, despite the country’s energy challenges, was another indication of what he described as poor management of Nigeria’s resources.
“We easily flare two billion cubic feet of gas a day. 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,” he said.
He also rejected arguments that domestic fuel prices should be benchmarked against international prices, saying countries should leverage their natural resources to improve the welfare of their citizens.
“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.
“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 said.
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