Former Chairman of the Economic and Financial Crimes Commission, Abdulrasheed Bawa, has unveiled the intricate web of corruption surrounding Nigeria's fuel subsidy program in his newly released book.
Titled 'The Shadow of Loot & Losses: Uncovering Nigeria's Petroleum Subsidy Fraud', the book details how billions of naira were systematically embezzled through sophisticated schemes under the guise of legitimate subsidy payments.
Sophisticated Fraud Tactics Revealed
Drawing from his firsthand experience as a key investigator on the EFCC's special team that probed the 2012 subsidy fraud, Bawa exposed several tactics employed by perpetrators, including:
Ghost importing: Companies submitted claims for fuel that was never actually imported
Over-invoicing: Inflating shipment volumes to receive excessive subsidy payouts
Manipulation of bills of lading: Altering shipping documents to exploit international price fluctuations
Round-tripping and double claims: Using single shipments to obtain multiple subsidy payments
Diversion and smuggling: Redirecting subsidized fuel to black markets or neighboring countries
According to Bawa, who served as EFCC chairman from 2021 to 2023, these fraudulent practices were facilitated by forged documents, weak regulatory oversight, and systemic collusion between corrupt government officials and private sector actors.
"The Shadow of Loot And Losses is not just a chronicle of fraud; it is a call to action — a demand for transparency, accountability, and reform in Nigeria's public finance management, especially in the oil sector," Bawa stated in the book.
Historical Context of Subsidy Fraud
The book's revelations provide context to Nigeria's long-standing fuel subsidy controversy. In 2012, the planned removal of fuel subsidy by then-President Goodluck Jonathan's administration triggered nationwide protests led by the 'Occupy Nigeria movement.'
That same year, the Federal Government reported paying N259,339,041,657.85 as subsidy claims between 2011 and 2012 alone.
Current Administration's Stance
President Bola Tinubu announced the removal of fuel subsidy at his inauguration in May 2023. Earlier this year, while speaking at the State House in Abuja, the President defended his decision as being in the interest of Nigerian youths and their future.
"Every decision that I have taken is about you. It's about the future. When we removed the fuel subsidy, it was because we wanted to protect your future. We have cleared the path for you to have a great future," Tinubu said.
Bawa's book appears to lend credence to the administration's position by documenting the extensive corruption that plagued the subsidy regime for years, costing Nigeria trillions of naira in misappropriated funds.
