Why Fuel Subsidy Was A National Scam - Ex-EFCC Boss Bawa Exposed

Former Chairman of the Economic and Financial Crimes Commission, AbdulRasheed Bawa, has described Nigeria's now-defunct fuel subsidy regime as a national scam engineered through entrenched corruption, regulatory compromise, and institutional complicity.

In an interview with Arise News on Monday, Bawa stated that the decades-old subsidy scheme was deliberately manipulated by powerful interests, including oil marketers, security agencies, and public office holders.

The former anti-graft czar, who served from 2021 to 2023, made the comments while discussing his new book, "The Shadow of Loot and Losses: Uncovering Nigeria's Fuel Subsidy Fraud,ÔÇØ which details investigations carried out by the EFCC between 2006 and 2011.

Bawa stated, "Everybody was benefiting from the scale and the scam, including law enforcement. People can be compromised in such a way that they will look the other way. It's a general thing.ÔÇØ

He said the EFCC's investigation revealed how Nigeria's subsidy payouts skyrocketed from 200 billion in 2006 to 2.1 trillion by 2011, a surge that raised red flags and triggered multiple probes.

According to Bawa, the scale of the fraud uncovered during his time at the EFCC was unprecedented.

Bawa further stated, "Even at that time at the EFCC, we saw that this was something that had never happened before. I took the pain to write it down.ÔÇØ

He noted that while not all subsidy payments were fraudulent, the system had become so porous that it enabled powerful actors to exploit regulatory loopholes, with political cover shielding many perpetrators from consequences.

"Irrespective of how fortified a system is, with human touch, there's nothing that cannot be done,ÔÇØ Bawa added.

Bawa recalled that the EFCC prosecuted and secured convictions for several individuals and companies involved in subsidy fraud, with some cases concluded as recently as 2025.

He said, "First, people were charged to court. Another set were charged. Then the government realised it didn't have to take that path. They opened a window for recovery.ÔÇØ

The EFCC's intervention, Bawa said, had a visible impact on the petroleum subsidy landscape. He revealed that the number of oil marketers dropped from 118 to 49, while annual subsidy payouts declined from 2 trillion to 1 trillion.
Bawa Speaks On Tinubu's Removal Of Fuel Subsidy
Reacting to President Bola Tinubu's 2023 decision to eliminate fuel subsidies entirely, Bawa said the move was long overdue and beneficial to Nigeria's fiscal health and anti-corruption efforts.

"It's a good thing that we had to let it go. At least that opportunity that the regime has provided is no more,ÔÇØ he said.

Although he said he couldn't independently verify how the money saved from the subsidy removal was being spent, he expressed confidence that substantial funds have been redirected to other areas of governance.

Bawa declined to make comparisons between his tenure and current leadership at the EFCC but emphasised that governance is a continuous journey.

He noted, "There is always room for improvement. The future is very bright for the country. We must be optimistic.ÔÇØ

On the pattern of EFCC chairmen leaving office under controversial circumstances, Bawa dismissed notions of political persecution, but acknowledged the perception challenges that come with the job.

"It's just a phase that has to come and go. People always talk. Whether you're telling the truth or not, people will say something,ÔÇØ he said.

Despite his own suspension in 2023, Bawa maintained that the work done under his watch, particularly in addressing subsidy fraud, was effective and far-reaching.

"The impact is real. The frauds that were identified helped to deal a very good blow to those that were participating in the scheme,ÔÇØ he concluded.