PRP candidate Donald Duke says security costs outpace Nigeria's oil production expenses

Security costs exceed production expenses Donald Duke, the presidential candidate of the People’s Redemption Party (PRP), told ARISE NEWS that the amount Nigeria spends to protect each barrel of crude oil is comparable to, and in some cases higher than, the cost of extracting the oil itself. He estimated the basic production cost of a barrel at between $12 and $15, while security measures and deteriorating infrastructure add another $13 to $30, raising the overall cost to between $25 and $45 per barrel.

Impact on fuel prices and living costs Duke linked these elevated oil‑related expenses to the high price of petrol at the pump, which he says contributes to the broader cost‑of‑living pressures facing Nigerians. He suggested that reducing the security and infrastructure burdens could bring down the price of petrol, which he proposes should be set at ₦300 per litre – a clarification after earlier reports mentioned a ₦200 figure.

Production capacity and government targets According to Duke, Nigeria currently produces roughly 1.7 to 1.8 million barrels of crude each day. He noted that the state oil company, the Nigerian National Petroleum Corporation (NNPC), is aiming to lower the overall cost of a barrel to about $20, but that security expenses continue to undermine that goal.

Breakdown of additional costs In the interview, Duke outlined a cost structure that includes transportation at around $38 per barrel and refining costs of roughly $10, bringing the total to about $48 before any security surcharge. He also referenced revenue from seven petroleum by‑products, implying that these could offset some of the financial strain if managed effectively.

Call for policy focus on productivity Duke framed his argument within a broader vision of national productivity. He asserted that the government's primary objective should be to enhance citizens' productivity by removing obstacles such as inflated energy costs. By addressing the security and infrastructure challenges that inflate oil expenses, he believes Nigeria could achieve cheaper fuel, lower inflation, and improved economic performance.

Response and context Both Punch and ARISE NEWS reported Duke's statements without providing counter‑views from government officials or industry representatives. As a result, the article reflects only the candidate’s perspective on the relationship between security spending, oil production costs, and fuel pricing in Nigeria.