Abuja — Former Economic and Financial Crimes Commission (EFCC) Chairman, Ibrahim Magu Bawa, has lifted the lid on extensive fraud within Nigeria’s fuel subsidy system, revealing that billions of naira have been siphoned off through deceptive practices including ‘ghost imports’ and over-invoicing.
Speaking at a recent anti-corruption forum, Magu detailed how unscrupulous actors exploit loopholes in the subsidy regime by falsifying import documents and inflating costs to illegally divert funds meant for subsidizing petroleum products. This manipulation has resulted in significant financial losses for the government, undermining efforts to stabilize fuel prices and support the economy.
“Ghost imports and over-invoicing have become pervasive methods through which billions of naira vanish from the subsidy fund, enriching corrupt networks at the expense of the Nigerian people,” Magu stated. He urged authorities to strengthen regulatory oversight, improve transparency, and enforce stricter sanctions against offenders to halt the hemorrhage of public resources.
Experts say that tackling these corrupt practices is crucial to reforming Nigeria’s fuel subsidy framework, which has long been criticized for inefficiency and abuse. The revelations renew calls for greater accountability and systemic reform to protect national assets.
The government has in recent years sought to reduce fuel subsidy costs, but Magu’s disclosure highlights ongoing challenges that must be addressed to ensure funds are properly utilized for the benefit of Nigerians.