Sh*cking Revelation: Fuel Subsidy Was A Monumental Scam – Bawa Breaks Silence

Former Chairman of the Economic and Financial Crimes Commission (EFCC), AbdulRasheed Bawa, has described Nigeria’s defunct fuel subsidy regime as a “national scam” sustained by deep-rooted corruption, weak regulatory oversight, and institutional collusion.....KINDLY READ THE FULL STORY HERE▶

In an interview with Arise News on Monday, Bawa revealed that the decades-long subsidy program was deliberately exploited by a network of powerful players, including oil marketers, security officials, and public servants. He made these remarks while discussing his new book titled “The Shadow of Loot and Losses: Uncovering Nigeria’s Fuel Subsidy Fraud,” which chronicles investigations by the EFCC between 2006 and 2011.

“Everyone benefited from the scam—right down to law enforcement,” Bawa noted. “People were compromised to the extent that they simply looked the other way. It was widespread.”

The former anti-graft chief, who led the EFCC from 2021 to 2023, disclosed that the Commission’s investigations exposed an alarming surge in subsidy claims—from ₦200 billion in 2006 to a staggering ₦2.1 trillion by 2011. He described the fraud as “unprecedented” in scale.

“Even during our EFCC investigations, we had never seen anything like it. That’s why I felt compelled to document it,” he said.

While acknowledging that not all subsidy payments were fraudulent, Bawa emphasized that the system had become so compromised that it allowed influential actors to exploit regulatory loopholes—often under political protection.

“No system, no matter how secure, is safe from manipulation when the human factor is involved,” he stated.

Bawa also recalled that numerous individuals and companies were prosecuted and convicted during the EFCC’s clampdown on subsidy fraud—some as recently as 2025. He explained that while some cases were taken to court, the government eventually created avenues for the recovery of stolen funds without full prosecution.

The EFCC’s crackdown, he said, had a measurable impact: the number of oil marketers dropped from 118 to 49, and annual subsidy payments were slashed from ₦2 trillion to ₦1 trillion.

On Tinubu’s Removal of Fuel Subsidy

Bawa commended President Bola Tinubu’s decision in 2023 to completely remove fuel subsidies, calling it “long overdue” and a major step toward fiscal responsibility and anti-corruption reform.

“It’s a good thing that we let it go. At least the opportunity for fraud that the subsidy system created is no longer available,” he remarked.

Though he admitted he couldn’t independently verify how the funds saved from subsidy removal were being allocated, Bawa expressed confidence that they were being redirected to critical sectors of the economy.

On the EFCC’s Future

Asked about the legacy of EFCC leadership and the controversies often surrounding former chairmen, Bawa dismissed claims of political victimization but acknowledged the job’s public perception challenges.

“It’s just a phase. Whether you’re telling the truth or not, people will always have something to say,” he commented.

Despite his own suspension in 2023, Bawa stood by the effectiveness of his tenure, especially in tackling fuel subsidy fraud.

“The impact was tangible. Our efforts dealt a significant blow to those involved in the scam,” he concluded.