Ex-EFCC Boss Bawa Labels Fuel Subsidy a ‘National Scam’

The now-defunct fuel subsidy system in Nigeria was a national swindle created by institutional cooperation, regulatory compromise, and ingrained corruption, according to AbdulRasheed Bawa, the former chairman of the Economic and Financial Crimes Commission.
Bawa claimed that influential groups, including as security services, public officials, and oil marketers, purposefully abused the decades-old subsidy program in an interview with Arise News on Monday.
The remarks came when the former anti-graft czar, who held office from 2021 to 2023, was talking about his new book, “The Shadow of Loot and Losses: Uncovering Nigeria’s Fuel Subsidy Fraud,” which describes the EFCC’s 2006–2011 investigations.

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

Nigeria’s subsidy payouts increased dramatically from ₦200 billion in 2006 to ₦2.1 trillion by 2011, he claimed, a spike that sparked concerns and led to several investigations, according to the EFCC’s inquiry.

The scope of the scam that was discovered while Bawa was at the EFCC was unparalleled, he said.

“We saw that this was something that had never happened before, even at the EFCC at the time,” Bawa added. I went to the trouble of writing it down.

While not all subsidy payments were fraudulent, he pointed out that the system had grown so vulnerable that it allowed powerful actors to take advantage of regulatory gaps, with many of the offenders being protected from punishment by political cover.

“No matter how robust a system is, nothing is impossible with a human touch,” Bawa continued.

According to Bawa, the EFCC has prosecuted and obtained convictions for a number of people and businesses engaged in subsidy fraud, with some cases ending as recently as 2025.

“People were charged to court first,” he said. Another pair was charged. The authorities then realized that was not the only option. They created a window for recuperation.

Bawa claimed that the petroleum subsidy environment was clearly impacted by the EFCC’s action. While yearly subsidy payouts decreased from ₦2 trillion to ₦1 trillion, he disclosed that the number of oil merchants fell from 118 to 49.

Bawa Discusses Tinubu Removing Fuel Subsidy
Bawa reacted to President Bola Tinubu’s 2023 decision to completely phase off fuel subsidies, saying the action was long overdue and advantageous for Nigeria’s anti-corruption and fiscal health initiatives.

“It is fortunate that we had to let it go. “At least the opportunity that the regime offered is no longer there,” he stated.

Despite his inability to objectively confirm the expenditure of the savings from the elimination of subsidies, he expressed confidence that significant sums of money had been diverted to other facets of government.

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

He said, “It can always be done better. The nation’s future is extremely promising. We have to have hope.

Bawa acknowledged the perceived issues that come with the post, but he rejected ideas of political persecution in reference to the trend of EFCC chairmen resigning under contentious circumstances.

Simply put, it’s a phase that must pass. There is always conversation. He stated, “People will say something whether you’re telling the truth or not.”

Even after being suspended himself 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 influence. He came to the conclusion that the frauds that were discovered dealt a serious blow to those involved in the scam.