Don't be misled Denis, most people do use some form of lubrication but there is no real consensus as to what is best! Ashley, is of the 'less is more' view!
He does have a point in that the lower bearing is immersed in water which provides its own lubrication but I do think you then need something at the inboard end of the shaft as well.
Some people like to stuff the prop tube with grease, not just for lubrication, but also to prevent water finding its way into the boat, particularly if the inboard end of the tube is below the waterline. In practice thrust washers between the propeller and the outer end of the tube and between the locknut and the inner end will largely prevent this. It is normal for a few drops of water to accumulate inside the model by the end of a run and nothing to be concerned about.
The problem with using conventional 'sticky' grease is that the outer layer sticks to the inside of the tube and the inner layer sticks to the shaft. So when the shaft turns you get a torque converter effect between the two which creates a lot of friction. The longer the tube, the worse the amount of friction and this can actually absorb a great deal of power – I know, I have measured it!
My personal preference is to use car engine oil to lubricate the shaft. It is 'sticky' enough not to be washed away but not sufficiently so to introduce a significant frictional effect.
However, just about everyone on here has their own pet preference so there is no absolute 'correct' answer!
Colin