A Lagos Federal High Court on May 27, 2025, handed down 14-year prison terms to two men for their roles in a ₦2.2 billion oil subsidy fraud.
The Economic and Financial Crimes Commission (EFCC) secured convictions against a son of a former chairman of the Peoples Democratic Party, Nasir Ali, and his associate, Ayo Adebowale, finding them guilty on all counts relating to false claims and diversion of fuel subsidy funds between 2013 and 2015.
In her judgment, Justice Chinyere Opene held that the pair colluded to submit overinflated subsidy payment requests to the Nigerian National Petroleum Corporation (NNPC), leading to the wrongful release of state funds.
The court heard that Ali, a former manager at a licensed oil marketing company, used forged documents and fake receipts to claim payments for fuel never supplied.
Adebowale, who served as Ali’s financial controller, was found to have processed and approved the fraudulent claims, transferring millions of naira into personal accounts.
Prosecuting counsel Festus Keyamo told the court that the defendants caused “serious economic loss” to the federal government by exploiting loopholes in the subsidy payment system.
Keyamo explained that the scam involved creating shell companies and recycling invoices to inflate the subsidy totals. This method, he said, undermined government efforts to manage the fuel subsidy regime and placed an unnecessary burden on the national treasury.
During proceedings, the defense counsel argued that the accused were low-level employees coerced into wrongdoing by senior managers. The court, however, rejected this, noting the sophistication and planning evident in the scheme.
Justice Opene emphasized that fuel subsidies are meant to cushion the poor against high energy costs, and misuse of such a programme strikes at the heart of public welfare. The judge warned that similar schemes would face “stern punishment” to deter others.
Nigeria’s fuel subsidy system has long been under scrutiny for vulnerabilities that fraudsters exploit. Introduced in the 1970s to keep petrol prices affordable, the subsidy programme has ballooned into one of the federal government’s largest recurrent expenses, costing the nation over ₦3 trillion in recent years.
Investigations by the EFCC reveal that fraudulent subsidy claims have drained billions of naira from national coffers, with many cases involving complex networks of marketers, bankers, and public officials. High-profile convictions are rare, making this ruling a significant victory for anti-corruption agencies.
President Bola Tinubu’s administration has vowed to reform the subsidy regime, citing its unsustainable cost and the prevalence of corruption. In March 2025, the federal government partially removed fuel subsidies, allowing market forces to determine petrol prices and reducing opportunities for fraud.
Civil society groups have welcomed the court’s decision, calling it a warning to those who view public funds as an easy target. Transparency International Nigeria described the sentencing as “a step toward accountability,” urging stronger oversight mechanisms to prevent future abuse.
Economic analysts say that eliminating excessive subsidy payments could free up funds for infrastructure, education, and healthcare. Yet they caution that without structural reforms—such as better auditing systems and digital verification of claims—fraudsters will continue to find ways to game the system.
The EFCC’s success in this case stems from the collaboration between its forensic accountants, IT specialists, and investigators, who traced the paper trails and bank transfers linking the accused to the stolen funds. The commission says it is reviewing ongoing cases to clamp down on other suspected offenders.
As Ali and Adebowale prepare to begin their sentences, the case serves as a reminder that Nigeria’s fight against corruption requires constant vigilance and judicial resolve. For ordinary Nigerians struggling with rising living costs, the recovery of fraudulently diverted subsidy funds could mean better-funded public services in the future.
