Jun 30, 2026

Court Bolsters EFCC Case in N1.4bn Oil Subsidy Fraud Trial

By Afolabi Olaiya Idowu in news

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In a significant development in one of Nigeria’s longest-running oil subsidy fraud prosecutions, a Lagos High Court on Tuesday, June 30, 2026, admitted additional documentary evidence presented by the Economic and Financial Crimes Commission (EFCC) against Abubakar Ali Peters, Managing Director of Nadabo Energy Limited, and the company itself.

Justice Ismail Ijelu of the Lagos State High Court sitting in Ikeja admitted bundles of documents, including petitions that triggered the investigation, correspondence with regulatory agencies, banking records, and shipping documents, without objection from the defence in most instances.

The move strengthens the EFCC’s case in a trial that has spanned over a decade, highlighting persistent challenges in Nigeria’s efforts to recover public funds lost to alleged fuel subsidy scams.

Peters and Nadabo Energy Limited face a 27-count charge bordering on fraud and forgery. The EFCC alleges they fraudulently obtained approximately N1.465 billion from the Federal Government under the Petroleum Support Fund (PSF) by inflating importation figures and using forged documents.

Key allegations include claims that Nadabo Energy purported to have imported nearly 19.5 million litres of Premium Motor Spirit (PMS) via vessels MT American Express and MT St. Vanessa in April 2012, when actual imports were far lower—around 6.5 million litres via different vessels.

Another count accuses the defendants of forging a marine insurance certificate from Staco Insurance Plc to facilitate the false claims.

The case originated from petitions received by the EFCC in early 2012 from the Minister of Petroleum Resources and civil society groups, which alleged widespread irregularities in the subsidy regime.

Investigations involved multiple agencies, including the Petroleum Products Pricing Regulatory Agency (PPPRA), banks like Enterprise

The matter was previously before Justice C.A. Balogun but was reassigned to Justice Ijelu following the latter’s retirement. Peters pleaded not guilty to the charges when read to him.

On Monday, June 29, EFCC investigator Adaobi Amanda Obiakor testified as the third prosecution witness (PW3). She detailed the probe’s origins, document requests to PPPRA, banking trails, and discrepancies uncovered in import volumes, financing, and documentation.

The court admitted letters to and from PPPRA, Enterprise Bank responses highlighting inauthentic documents, payment records via Polaris Bank, and other exhibits.

During cross-examination on Tuesday, Obiakor confirmed her role in the investigative team but acknowledged her name did not appear on the main investigation report or several documents.

She maintained that statements from the defendants were voluntary, though no lawyer was present during recording.

The defence challenged aspects of the evidence chain, including an email to former EFCC Chairman Abdulrasheed Bawa, but Justice Ijelu overruled the objection and admitted it along with a summary of transactions prepared by Bawa.

The court adjourned the matter to October 12 and 13, 2026, for continuation of the trial.

This case is emblematic of the massive fuel subsidy fraud scandals that plagued Nigeria around 2011-2012, which reportedly cost the nation hundreds of billions of naira.

Many similar prosecutions have faced delays due to judicial retirements, legal maneuvers, and the complexity of financial tracing across international and local entities.

The EFCC’s persistence in tendering fresh evidence underscores its commitment to accountability in high-profile economic crimes, even years later.

For Peters and Nadabo Energy, the stakes remain high, with potential forfeiture of assets and long prison terms if convicted. The trial also serves as a reminder to oil marketers and public officials of the scrutiny applied to subsidy claims.

As Nigeria continues to grapple with energy sector reforms and anti-corruption drives, outcomes in cases like this could influence public trust in institutions tasked with safeguarding national resources.

Observers will watch closely as cross-examination and defence presentations unfold in the coming months.

The EFCC has not issued further comments beyond its official update on the proceedings. Peters maintains his innocence, as per his plea.