Fuel Subsidy Fraud Exposed: Ex-EFCC Chief Reveals Sh*cking Billions Stolen

Abdulrasheed Bawa, former Chairman of the Economic and Financial Crimes Commission (EFCC), has revealed how billions of naira were embezzled from public funds through fraudulent fuel subsidy claims in Nigeria.

In his latest book, The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud, Bawa details widespread corruption within the fuel subsidy regime, highlighting tactics such as ghost imports, over-invoicing, forged documents, and collusion between corrupt officials and private companies.

In a statement released Wednesday, Bawa, who led the EFCC from 2021 to 2023 during President Muhammadu Buhari’s administration, disclosed how single shipments of fuel were repeatedly used to claim multiple subsidies. He further exposed how subsidized fuel was diverted to black markets or smuggled out of the country for profit.

Bawa explained that fraudsters manipulated bills of lading to exploit fluctuations in international oil prices, maximizing their illicit gains. He described the book not only as a detailed record of fraud but also as a strong appeal for greater transparency, accountability, and reform within Nigeria’s oil sector.

He stated, “Companies routinely claimed subsidies for fuel that was never imported or exaggerated shipment volumes to receive inflated payments. These crimes were facilitated by forged documentation, regulatory failures, and deep-rooted corruption spanning government agencies and businesses.”

Published by CableBooks, an imprint of Cable Media & Publishing Ltd, The Shadow of Loot & Losses uncovers several fraudulent schemes, including:

• Ghost importing and over-invoicing: Submitting subsidy claims for fuel that never arrived or inflating shipment sizes to obtain excess payments.

• Manipulation of bills of lading: Altering shipping documents to take advantage of global price changes and claim larger subsidies.

• Round-tripping and double claims: Using a single fuel shipment to make multiple subsidy claims.

• Diversion and smuggling: Redirecting subsidized fuel to black markets or smuggling it out of Nigeria for financial gain.

Bawa emphasizes that these fraudulent practices were enabled by forged paperwork, weak regulatory enforcement, and systemic collusion between corrupt officials and private sector actors.

The Shadow of Loot & Losses serves not only as a comprehensive exposé of fuel subsidy fraud but also as a call to action demanding urgent reforms and improved governance in Nigeria’s public finance and oil industries.