Former Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, has revealed that Nigeria lost a staggering $450 million to fraud perpetrated under the Petroleum Support Fund (PSF) subsidy scheme between 2006 and 2012.
Bawa made this disclosure in his newly released book, The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud, where he detailed how oil marketers manipulated the system to siphon billions from public funds.
The ex-EFCC boss, who served as the agency’s chairman from February 2021 to June 2023, was a lead investigator on the team that probed the infamous fuel subsidy scam.
According to him, 59 of the 141 oil companies that benefited from the PSF scheme during the six-year period were implicated in fraudulent activities.
“Our investigations revealed that fraud related to petroleum subsidies exceeded N68 billion, which translates to over $450 million in direct fraudulent activities,” he wrote.
“This included forged shipping documents, inflated claims, and payments for products never delivered.”
Bawa noted that about 80 percent of the stolen funds had been recovered, while the remaining amount is tied up in court cases or linked to deceased individuals.
He stated that between 1999 and 2024, Nigeria had spent over N16.5 trillion on petrol subsidies—an amount he described as unsustainable and largely unaccounted for.
The former EFCC chairman also highlighted that within the seven years of the PSF scheme’s implementation, a total of N5.755 trillion was spent on subsidies, with 2011 alone recording a staggering N2.1 trillion due to systemic fraud and political interference.
“Many of the companies that received import permits lacked the capacity or infrastructure to deliver. Some were ‘briefcase’ companies that existed only on paper, yet received billions through politically-motivated approvals,” he added.
Bawa explained that the misuse of subsidy funds did not only bleed the treasury but also distorted the economy. He said the diversion of subsidised products to black markets and across borders worsened fuel scarcity, spiked inflation, and discouraged foreign investment in the downstream sector.
He further accused regulatory agencies like the Petroleum Products Pricing Regulatory Agency (PPPRA) of lax oversight, noting that by 2010 and 2011, import permits had become “a goldmine,” and were abused by politically connected firms.
The ex-EFCC boss expressed regret that the massive subsidy losses deprived the country of essential infrastructure and social development projects. He called for tighter regulation and prosecution of fraudsters to deter future abuses.
Published by Cable Books, the exposé is now available for purchase online, including on Amazon and Roving Heights.
Bawa’s revelations come at a time when the federal government continues to grapple with subsidy-related debts and policy reforms aimed at liberalising the petroleum sector.
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