Oil
Donald Duke questions high crude security costs in Nigeria
Security expenses and infrastructure decay are inflating crude production costs in Nigeria, according to political figure Donald Duke.
Key points
- Security and infrastructure push extraction costs from $12-$15 up to $45 per barrel.
- Energy costs heavily drive inflation and hinder broader economic productivity.
- Critics argue government focus should shift from revenue collection to growth.
What happened
Security expenses and dilapidated infrastructure are inflating crude oil production costs in Nigeria, according to People’s Redemption Party presidential candidate Donald Duke. Arise News reported that Duke stated actual extraction costs range between $12 and $15 per barrel, but security and infrastructure issues push total expenses to between $25 and $45 per barrel.
Why it matters
Speaking in an interview, Duke argued that energy costs heavily influence national inflation and hinder economic productivity. According to World Bank figures, fuel exports accounted for 85.9 per cent of Nigeria's merchandise exports in 2025, underscoring the sector's importance to the economy. Duke contended that lowering petrol prices and improving energy access are essential for supporting citizens and businesses.
What comes next
Duke proposed utilizing domestic crude blends and contract refining to reduce fuel prices for consumers. He also criticized current government spending priorities, including borrowing for infrastructure projects like the Lagos Coastal Highway, arguing that funds should instead target economic growth and essential public services.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
