Former Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, has revealed damning details of how billions of naira were siphoned from Nigeria’s public treasury through large-scale fraud in the country’s fuel subsidy program.
In a new book titled “The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud”, Bawa chronicles what he describes as one of the most elaborate and entrenched financial scams in Nigeria’s history, implicating a wide network of private oil marketers, government officials, and regulatory agencies.
Bawa, who led the EFCC from 2021 until his suspension in 2023 under the administration of former President Muhammadu Buhari, disclosed that ghost imports, over-invoicing, forged shipping documents, and systemic regulatory failures were at the heart of the massive fraud that plagued Nigeria’s subsidy regime for years.
“Companies routinely claimed subsidies for fuel that was never imported or significantly inflated shipment volumes to receive excessive payments,” Bawa stated.
Inside the Scam: Key Methods of Fraud
According to excerpts from the book, published by CableBooks, an imprint of Cable Media & Publishing Ltd, Bawa details multiple sophisticated tactics used to defraud the Nigerian government:
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Ghost Imports and Over-Invoicing: Fraudulent companies submitted subsidy claims for nonexistent shipments or exaggerated fuel volumes to secure inflated payouts.
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Manipulation of Bills of Lading: Perpetrators altered official shipping documents to exploit price variations on the international market, thereby increasing subsidy claims.
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Round-Tripping and Double Claims: Single fuel shipments were used to secure multiple subsidy payments through duplicate documentation and manipulation of port records.
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Diversion and Smuggling: Subsidized fuel, intended for Nigerian consumers, was frequently diverted to illegal local markets or smuggled across borders for higher profit margins.
Bawa emphasized that these fraudulent activities were not isolated incidents but part of a deeply rooted culture of collusion between business interests and corrupt public officials, enabled by weak regulatory oversight and the absence of accountability mechanisms.
“This is not just a book about theft it’s a blueprint for change,” Bawa said. “The revelations are meant to provoke national reflection and action to reform our public financial systems, particularly in the petroleum sector.”
A Call to Action
The Shadow of Loot & Losses is both a documentary record of financial malfeasance and a call for urgent structural reforms. It highlights the need for stronger institutions, transparent auditing processes, and political will to dismantle corruption networks that continue to undermine Nigeria’s economic development.
Bawa’s book arrives at a critical time as the federal government continues efforts to phase out the fuel subsidy regime amid economic pressures and calls for fiscal transparency.
The revelations, if acted upon, could renew public scrutiny of past subsidy payments, fuel pricing mechanisms, and the role of key institutions tasked with safeguarding Nigeria’s oil wealth.
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