$450 Million Gone! Ex-EFCC Boss Exposes Jaw-Dropping Petrol Subsidy ScamFormer Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, has exposed how Nigeria lost approximately $450 million to fraudulent activities tied to the Petroleum Support Fund (PSF) between 2006 and 2012.
In his newly published book, “The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud,” Bawa dives into the web of corruption that plagued Nigeria’s fuel subsidy system for years.
Drawing from his time leading a special EFCC investigative team, Bawa detailed how multiple oil marketers were involved in manipulating the subsidy scheme for personal gain — many of whom were eventually prosecuted.
According to him, between 1999 and 2023, Nigeria spent over ₦16.5 trillion on petrol subsidies. He said that of the 141 companies participating in the PSF from 2006 to 2011, 59 were implicated in fraudulent transactions totaling more than ₦68 billion (roughly $450 million).
“These scams involved inflated claims, fake documentation, and forged shipping records designed to extract higher subsidy payments,” Bawa wrote. “For instance, some marketers falsified bills of lading to match fabricated vessel arrival dates, trying to exploit loopholes in the subsidy guidelines. Although these attempts were thwarted in some cases, the scale of fraud was enormous.”
While 2006 and 2007 appeared relatively clean, Bawa noted that large-scale fraud emerged between 2008 and 2011. In 2011 alone — the worst year for the subsidy scandal — fraudulent claims amounted to ₦41.7 billion.
“Roughly 80% of the stolen funds have been recovered,” he said. “However, the remaining losses are tied up in unresolved court cases or individuals who are now deceased.”
He lamented that such monumental theft robbed Nigeria of much-needed funds for development, impacting essential sectors like education, healthcare, and social programs.
“Over the past 25 years, trillions have been spent — and a significant portion siphoned — under the guise of fuel subsidies,” Bawa concluded. “This mismanagement has deepened Nigeria’s fiscal woes and led to funding shortfalls across critical areas.”
