Fuel Subsidy: Bawa, ex-EFCC Chairman, Alleges 'Ghost Importing,' Over-Invoicing In New Book
Former Chairman of the Economic and Financial Crimes Commission, EFCC, Abdulrasheed Bawa, has said that the large scale of corruption involved fuel the so- called fuel subsidy was unimaginable.
Former Chairman of the Economic and Financial Crimes Commission, EFCC, Abdulrasheed Bawa, has said that the large scale of corruption involved fuel the so- called fuel subsidy was unimaginable.
He described fuel subsidy as system used to siphon humongous amount of public funds at any given period under the guise of fuel subsidy payments.
Subsidy Removal
In 2012, the planned removal of the fuel subsidy by the then administration of President Goodluck Jonathan sparked a nationwide protest by Nigerians, under the Occupy Nigeria movement.
In September 2012, the Federal Government said it paid a total of ₦259, 339, 041, 657.85 as subsidy claims between 2011 and 2012.
But, speaking at his inauguration on May 29, 2023, President Bola Tinubu announced the removal of fuel subsidy.
Also, speaking during the inauguration of the Planning Committee for the National Youth Conference at the State House, Abuja, in March 2025, Tinubu reiterated that his decision to abolish the fuel subsidy regime was in the interest of Nigerian youths and their future.
Bawa revealed this in his book, titled ‘The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud,’ according to a statement on Monday.
According to the statement, the book exposes Nigeria’s multi-trillion-naira fuel subsidy scandal, unraveling the inner workings of one of the country’s most pervasive financial crimes.
Drawing from his firsthand experience as a key investigator on the EFCC’s special team that probed the 2012 subsidy fraud, Bawa revealed the complexity, and audacity of the corrupt schemes used.
He chronicled how billions of naira were embezzled through ghost importing and over-invoicing as companies submitted claims for fuel that was never imported or inflated shipment volumes to receive excessive subsidy payouts.
Bawa further revealed in the book that another form adopted by the perpetrators of the scandals, is the manipulation of bills of lading, where fraudsters exploited international price fluctuations to claim higher subsidies, by altering shipping documents.
Other sharp practices exposed by Bawa, who served as the EFCC chairman from 2021 to 2023, are round-tripping, double claims, diversion, and smuggling.
“Single shipments were often used to obtain multiple subsidy payments. Subsidised fuel was frequently diverted to black markets or smuggled out of Nigeria for profit.
He further stressed that these practices, were boosted 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 said.
According to the statement, the book exposes Nigeria’s multi-trillion-naira fuel subsidy scandal, unraveling the inner workings of one of the country’s most pervasive financial crimes.
Drawing from his firsthand experience as a key investigator on the EFCC’s special team that probed the 2012 subsidy fraud, Bawa revealed the complexity, and audacity of the corrupt schemes used.
He chronicled how billions of naira were embezzled through ghost importing and over-invoicing as companies submitted claims for fuel that was never imported or inflated shipment volumes to receive excessive subsidy payouts.
Bawa further revealed in the book that another form adopted by the perpetrators of the scandals, is the manipulation of bills of lading, where fraudsters exploited international price fluctuations to claim higher subsidies, by altering shipping documents.
Other sharp practices exposed by Bawa, who served as the EFCC chairman from 2021 to 2023, are round-tripping, double claims, diversion, and smuggling.
“Single shipments were often used to obtain multiple subsidy payments. Subsidised fuel was frequently diverted to black markets or smuggled out of Nigeria for profit.
He further stressed that these practices, were boosted 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 said.
Subsidy Removal
In 2012, the planned removal of the fuel subsidy by the then administration of President Goodluck Jonathan sparked a nationwide protest by Nigerians, under the Occupy Nigeria movement.
In September 2012, the Federal Government said it paid a total of ₦259, 339, 041, 657.85 as subsidy claims between 2011 and 2012.
But, speaking at his inauguration on May 29, 2023, President Bola Tinubu announced the removal of fuel subsidy.
Also, speaking during the inauguration of the Planning Committee for the National Youth Conference at the State House, Abuja, in March 2025, Tinubu reiterated that his decision to abolish the fuel subsidy regime was in the interest of Nigerian youths and their future.
His words, "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."
“We have cleared the path for you to have a great future."
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