Fuel Subsidy Was A National Scam – Former EFCC Boss Bawa

AbdulRasheed Bawa, a former chairman of the Economic and Financial Crimes Commission, has called Nigeria’s now-defunct fuel subsidy system a national swindle that was created via institutional collusion, regulatory compromise, and ingrained corruption.
Bawa said in an interview with Arise News on Monday that influential groups, including as security services, public officials, and oil marketers, purposefully abused the long-standing subsidy program.
While talking about his latest book, “The Shadow of Loot and Losses: Uncovering Nigeria’s Fuel Subsidy Fraud,” which outlines EFCC investigations conducted between 2006 and 2011, the former anti-graft czar, who served from 2021 to 2023, made the remarks.

“Everyone, including law enforcement, was benefiting from the scale and the scam,” said Bawa. It is possible to compromise someone to the point where they will ignore it. It’s a broad issue.

He claimed that the EFCC’s examination showed how Nigeria’s subsidy payouts increased dramatically from ₦200 billion in 2006 to ₦2.1 trillion by 2011, a spike that sparked several investigations and raised concerns.

“The scope of the fraud that was discovered during my tenure at the EFCC was unprecedented,” Bawa said.

“Even at that time at the EFCC, we saw that this was something that had never happened before,” Bawa added. I made the effort to write it down.

Even while not all subsidy payments were fraudulent, he pointed out that the system had grown so weak that it allowed powerful actors to take advantage of legal gaps, with political cover protecting many of the offenders from punishment.

“With human touch, nothing is impossible, regardless of how robust a system is,” Bawa continued.

Bawa noted that the EFCC had prosecuted and convicted a number of people and businesses engaged in subsidy fraud, with some cases ending as recently as 2025.

“First, people were charged to court,” he stated. An additional set was charged. The government then realized it didn’t have to go that route. They created a window for healing.

The petroleum subsidy landscape was clearly affected by the EFCC’s intervention, according to Bawa. He disclosed that annual subsidy payments decreased from ₦2 trillion to ₦1 trillion, and the number of oil merchants fell from 118 to 49.

Bawa Discusses Tinubu’s Fuel Subsidy Elimination
In response to President Bola Tinubu’s 2023 decision to completely phase off fuel subsidies, Bawa stated that the action was long overdue and advantageous for Nigeria’s anti-corruption initiatives and financial stability.

“We’re glad we have to let it go. “At least that opportunity that the regime offered is no longer there,” he stated.

He expressed confidence that significant sums had been diverted to other areas of governance, despite the fact that he was unable to objectively confirm how the money saved from the withdrawal of subsidies was being used.

Bawa emphasized that governance is an ongoing process, but he rejected to draw parallels between his time there and the present leadership at the EFCC.

“There is always room for improvement,” he said. The nation has a very promising future. We need to be hopeful.

Regarding the trend of EFCC chairmen resigning under contentious circumstances, Bawa rejected ideas of political persecution while acknowledging the position’s perceptional difficulties.

“It’s only a stage that must pass. Humans are always talking. People will say something whether or not you’re talking the truth,” he stated.

Despite his own suspension in 2023, Bawa insisted that the work he oversaw was extensive and successful, especially when it came to combating subsidy fraud.

“There is a real impact.” “Those who were involved in the scheme were dealt a very good blow by the frauds that were discovered,” he said.