$450 Million Vanished! Ex-EFCC Boss Bawa Exposes Massive Petrol Subsidy Scam

Former Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, has disclosed that Nigeria lost $450 million to fraudulent activities under the Petroleum Support Fund (PSF) between 2006 and 2012.

The revelation comes from his new book, titled “The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud,” which sheds light on the entrenched corruption within Nigeria’s fuel subsidy system.

Bawa, who headed a special investigative unit during his time at the EFCC, noted that multiple oil marketers were implicated and prosecuted in connection with the fraud.

He also provided a broader perspective on Nigeria’s subsidy expenditures, estimating that over ₦16.5 trillion has been spent on petrol subsidies since 1999, when the country returned to democratic governance.

“Our investigations found, as confirmed by the companies involved, that fraud in the PSF scheme exceeded ₦68 billion—equivalent to over $450 million,” Bawa wrote. “This involved 59 of the 141 companies that participated in the PSF between 2006 and 2011. We also uncovered ₦19.6 billion in bogus claims linked to unidentified traders.”

He revealed that another ₦9.4 billion attempted fraud involved falsified documents and manipulated shipping records, though these efforts were ultimately unsuccessful due to safeguards in the system.

While 2006 and 2007 recorded no major infractions, Bawa said the fraud intensified from 2008 to 2011, peaking in 2011 with a staggering ₦41.7 billion in fraudulent claims. In total, about 80% of the ₦68 billion has been recovered, while the rest remains tied to ongoing court cases or deceased suspects.

Bawa lamented that these massive financial losses deprived Nigeria of vital investments in infrastructure, education, healthcare, and social welfare.

He concluded by emphasizing that a significant portion of the ₦16.5 trillion subsidy expenditure was rooted in false claims and looting, calling it a tragic misuse of public funds that has deepened the country’s fiscal crisis.