Former Nigerian Minister of Finance and Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, has recounted how her efforts to uncover an alleged $2.4 billion fuel subsidy fraud resulted in threats against her and the kidnapping of her mother.
Okonjo-Iweala disclosed this during an interview with Bloomberg’s Francine Lacqua, explaining how irregularities in Nigeria’s fuel subsidy programme prompted her to request an audit of payments made to fuel importers.
She explained that although Nigeria produces crude oil, the country relied on imported refined petroleum products because its refineries could not meet domestic demand at the time.
Under the subsidy arrangement, fuel importers brought refined petroleum products into the country and received government payments that enabled them to sell the products at subsidised prices at filling stations.
However, Okonjo-Iweala said the claims submitted by importers began to rise sharply, raising suspicions about possible fraud within the programme.
Concerned by the growing figures, she approached the then president and requested approval to audit the accounts. The request was granted, and the subsequent investigation uncovered what she described as approximately $2.4 billion in fraudulent claims.
Following the discovery, the government refused to pay the disputed claims, a decision that she said triggered threats against her and eventually led to her mother’s abduction.
According to the former finance minister, the kidnappers demanded that she resign from her position and leave Nigeria in exchange for her mother’s release.
Recalling the incident, Okonjo-Iweala said the ordeal was among the most painful experiences of her life.
She explained that the subsidy fraud investigation began after officials noticed that unusually large sums were being claimed under the programme.
“Nigeria is an oil-producing country, but we cannot refine everything that we consume. So we do bring in refined oil from outside,” she said.
She added that importers received subsidies from the government and sold fuel at lower prices, but the amounts claimed under the scheme suddenly increased beyond what appeared normal.
“So I went to the president and said, look, something is going on here. Could we audit the accounts? And he said, yes, go ahead. And we found about $2.4 billion worth of fraud. So we refused to pay,” she recounted.
Okonjo-Iweala said the decision was followed by threats and the kidnapping of her mother, with the abductors insisting that she quit her job and leave the country.
Describing the five-day ordeal, she said the possibility that her actions could lead to her mother’s death placed her under enormous emotional strain.
She disclosed that her mother was held in a forest before eventually escaping one night.
Despite the traumatic experience, Okonjo-Iweala said she was grateful that her mother survived. Now 96, her mother still reacts emotionally whenever the incident is mentioned.
Reflecting on the difficult choice she faced, the WTO chief said her mother’s life would always take priority over her position.
“Having my mother alive and staying in a job, I will pick my mother any day,” she said.
