Justice Mojisola Dada of the Lagos State Special Offences Court in Ikeja has convicted and sentenced two oil merchants, Mamman Nasir Ali and Christian Taylor, to 14 years in prison each for their involvement in a ₦2.2 billion oil subsidy fraud.
The verdict, delivered on Tuesday, concludes a long-running trial initiated by the Economic and Financial Crimes Commission (EFCC) following allegations that the defendants fraudulently obtained funds from the Federal Government under the petroleum subsidy scheme.
Ali and Taylor were prosecuted alongside their company, Nasaman Oil Services Limited, on an amended 57-count charge bordering on conspiracy, obtaining money under false pretence, forgery and the use of false documents.
They were re-arraigned on March 26, 2025, following the emergence of new evidence.
According to the EFCC, the defendants presented forged documents, including a falsified “Gasoline Analysis” report for the vessel MT Overseas Limar, to fraudulently claim ₦2.2 billion in subsidy payments on or about September 9, 2011. The analysis report was purportedly issued by Saybolt Concremat but was proven to be fabricated.
The prosecution, led by counsel Seiduh Atteh, argued that the fraudulent documentation was used to obtain public funds designated for legitimate subsidy claims under the Petroleum Support Fund. The court found that the defendants had no credible evidence to justify the claims submitted for subsidy reimbursements.
In her judgment, Justice Dada stated that the prosecution had provided overwhelming evidence proving the defendants’ culpability in the fraud.
She noted that the actions of the convicts not only defrauded the Federal Government but also undermined the credibility of the national subsidy framework.
Beyond the custodial sentences, the court ordered the forfeiture of all identified assets and bank accounts linked to the fraud scheme.
This includes corporate and personal accounts held in the name of the convicted parties and Nasaman Oil Services Limited.
The court also issued bench warrants for the arrest of two additional suspects, Oluwaseun Ogunbambo and Olabisi Abdul Afeez, who remain at large. Both individuals are named in connection with the fraudulent subsidy claims and are now subjects of active law enforcement pursuit.
The EFCC welcomed the ruling as a significant milestone in its broader efforts to hold parties accountable for systemic fraud in the oil and gas sector.
The agency reaffirmed its commitment to pursuing economic crimes and recovering misappropriated public funds.
This conviction adds to a growing list of successful prosecutions tied to Nigeria’s subsidy regime, which has long faced scrutiny over weak oversight, inflated claims and policy abuse.
Analysts note that strengthened enforcement and judiciary outcomes such as this ruling are critical to restoring public confidence and financial discipline in the downstream petroleum industry.
The court’s decision reinforces the legal stance that fraudulent subsidy claims constitute a serious economic offence with long-term fiscal implications. It also signals a continued focus by anti-corruption agencies on legacy subsidy cases involving private sector actors and their enablers.
