The Lagos State Special Offences Court in Ikeja has sentenced two oil marketers to 14 years in prison for their involvement in a N2.2 billion petrol subsidy fraud that gained national attention in 2012.
Mamman Ali, the son of former Peoples Democratic Party (PDP) national chairperson Ahmadu Ali, and his co-defendant Christian Taylor, were sentenced on Tuesday after a protracted 13-year trial. The trial, which involved 57 amended counts of fraud, saw both men convicted for their roles in defrauding the federal government of billions under the subsidy programme in 2011.
Judge Mojisola Dada, in her ruling, confirmed that the Economic and Financial Crimes Commission (EFCC) had successfully proved its case against the defendants beyond reasonable doubt. The charges involved fraudulently obtaining funds from the federal government for the importation of petrol under the Petroleum Support Fund (PSF).
The Fraud Scheme
According to the EFCC, the duo fraudulently obtained N1.48 billion on 11 April 2011 for 20,492,982.5 litres of petrol that Ali’s company, Nasaman Oil Services Ltd, falsely claimed to have imported from SEATAC Petroleum Ltd, a firm based in the British Virgin Islands. This shipment was purportedly transported via MT Liquid Fortune Ex Mt. Hellenic Blue and Ex MT Milleura.
In a separate incident on 9 November 2011, Ali and Taylor were accused of fraudulently claiming an additional N750 million for 10,031,986 litres of petrol under the same subsidy scheme, once again using fraudulent shipping and loan facility documents.
The EFCC also alleged that the defendants falsely presented forged shipping documents to the federal government in order to obtain these funds, undermining the integrity of the petrol subsidy programme and contributing to the ballooning costs that led to nationwide protests.
The Fuel Subsidy Crisis
The fuel subsidy programme became a contentious issue in January 2012 when then-President Goodluck Jonathan attempted to end the subsidy, citing the unsustainable financial burden it placed on the government. The removal of the subsidy sparked widespread protests under the #OccupyNigeria movement, with demonstrators calling for transparency and accountability in the oil sector.
Under public pressure, President Jonathan’s government reversed part of the subsidy removal, but continued to face scrutiny over corruption and mismanagement within the system. The EFCC’s investigations revealed several oil marketers, including Ali and Taylor, who had exploited the system for personal gain.
Protracted Legal Battle
The trial of Ali and Taylor has been one of the longest-running cases associated with the fuel subsidy scandal. Initially, the case was heard by Judge Adeniyi Onigbanjo before it was reassigned to Judge Mojisola Dada, following delays. Throughout the 13 years of legal proceedings, numerous setbacks occurred, including case reassignments and challenges to the evidence presented.
Despite the long wait, the court found sufficient evidence to convict the defendants, ordering the forfeiture of their bank accounts and assets tied to the fraudulent activities. Ali and Taylor were sentenced to 14 years in prison, and the judge issued warrants for the arrest of two other suspects, Olabisi Abdul-Afeez and Oluwaseun Ogunbambo, who remain at large.
Political Connections and Public Impact
Mamman Ali’s father, Ahmadu Ali, had been the chairman of the Petroleum Products Pricing Regulatory Authority (PPPRA) at the time of the fraud, and his involvement raised questions about the links between government officials and the oil marketers. In 2012, following the #OccupyNigeria protests, the House of Representatives had recommended the prosecution of Ahmadu Ali for his role in the subsidy scandal. However, the investigation into his activities stalled, and no legal action was taken against him.
The case also comes amid an ongoing effort by the EFCC to hold oil marketers accountable for the vast sums defrauded from the subsidy system. Over the years, several marketers have faced prosecution, and some have been sentenced, while others have been acquitted.
EFCC’s Fight Against Corruption
The EFCC continues its fight to recover funds misappropriated under the fuel subsidy programme, with several high-profile trials still pending. Despite setbacks, including the lengthy trial of Ali and Taylor, the commission remains committed to holding those responsible for defrauding the Nigerian people accountable for their actions.