Abdulrasheed Bawa, the former Chairman of the Economic and Financial Crimes Commission (EFCC), has revealed how massive corruption networks exploited Nigeria’s fuel subsidy regime, costing the nation trillions of naira.
The revelations are detailed in his newly published book titled: ‘The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud’.
Drawing from his experience as lead investigator during the 2012 fuel subsidy probe, Bawa outlines how systemic weaknesses and deliberate manipulation allowed widespread fraud to flourish.
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Sophisticated fraud schemes uncovered
Bawa identifies multiple strategies used to defraud the government:
One of the tactics uncovered was the practice of ghost importing, where fraudulent claims were made for fuel consignments that never actually arrived in Nigeria.
Companies submitted documentation suggesting delivery, but no physical shipment was made, effectively siphoning funds from the national treasury without providing any product in return.
Another prevalent method was over-invoicing. Importers deliberately exaggerated the volume of petroleum products in their shipping records to secure disproportionately high subsidy payments. This manipulation not only distorted actual fuel import figures but also inflated government expenditure on subsidies.
A core enabler of the fraud was the forgery of shipping documents.
Investigations revealed that bills of lading and other cargo documents were frequently falsified to alter details such as quantity, origin, and delivery dates. These forged records were then used to legitimise fraudulent claims.
Price manipulation also played a critical role. Subsidy recipients often presented doctored international market prices, claiming that fuel had been purchased at inflated rates. By doing so, they secured higher reimbursements from the government than were warranted.
In some cases, duplicate claims were made using a single fuel shipment. The same cargo would be submitted for reimbursement more than once, each time under a different name or through a separate fraudulent documentation trail, thereby multiplying illicit gains.
There was the issue of diversion and smuggling. Subsidised fuel intended for domestic use was often redirected to the black market or illicitly smuggled into neighbouring countries, where it fetched significantly higher prices. This undermined the subsidy’s intended purpose and further exacerbated Nigeria’s economic losses.
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According to Bawa, these activities were made possible through the widespread use of forged documents and weak regulatory oversight, leading to the unchecked misappropriation of public funds.
The former EFCC chief accuses certain government agencies of failing in their duty of oversight and suggests that some officials were complicit in the fraud. He explains that collusion between civil servants, political actors, and private sector operators created an environment ripe for abuse.
A call for structural reform
Bawa has urged the Nigerian government to overhaul its public finance management systems, particularly within the oil and gas sector. He also recommends tighter oversight mechanisms, enhanced transparency, and institutional accountability as tools to combat corruption.
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