A Lagos State Special Offences Court in Ikeja has sentenced two oil marketers, Mamman Ali and Christian Taylor, to 14 years imprisonment each for their roles in a massive N2.2 billion fuel subsidy fraud. The court’s verdict comes more than a decade after the scandal first ignited national outrage and protests.
Justice Mojisola Dada, who presided over the long-running case, ruled that the Economic and Financial Crimes Commission (EFCC) had presented irrefutable evidence proving that the duo deliberately defrauded the federal government under the guise of fuel importation claims made in 2011. The conviction marks one of the longest prosecutions related to Nigeria’s notorious fuel subsidy regime.
EFCC Proves Case Beyond Reasonable Doubt
According to the court’s judgment delivered on Tuesday, Justice Dada held that the EFCC had proved its case beyond reasonable doubt. The agency presented an amended 57-count charge detailing how the defendants fraudulently secured payments from the federal government for petrol importation that never occurred. The judge further ordered the forfeiture of all bank accounts and assets connected to the illicit transactions, affirming that the convicted marketers not only cheated the Nigerian government but also tarnished the integrity of the subsidy scheme.
The EFCC’s prosecution team, led by Seiduh Atteh, brought forward several witnesses and documentary evidence during the trial to establish the fraudulent nature of the transactions, including fake import documents and falsified loan facility letters.
The Mechanics of the Fraud
The court heard that Mamman Ali and Christian Taylor, acting through Nasaman Oil Services Ltd, fraudulently obtained N1.48 billion from the federal treasury on April 11, 2011. They claimed that this payment was for importing 20.49 million litres of petrol into Nigeria under the Petroleum Support Fund (PSF). According to the EFCC, the defendants falsely stated that they purchased the petrol from SEATAC Petroleum Ltd in the British Virgin Islands and brought it into Nigeria via the MT Liquid Fortune, Ex MT Hellenic Blue, and Ex MT Milleura.
Further, on November 9, 2011, the same firm, Nasaman Oil Services, allegedly received another N750 million from the government for an additional 10.03 million litres of petrol purportedly brought in via MT Liquid Fortune Ltd Ex MT Overseas Lima. EFCC investigations revealed that the transactions never occurred and were backed by forged documentation.
Family Ties to the PDP and Oil Regulation
The high-profile nature of the case stems in part from Mamman Ali‘s political lineage. He is the son of Ahmadu Ali, a former national chairman of the Peoples Democratic Party (PDP) and, at the time of the fraud, chairman of the board of the now-defunct Petroleum Products Pricing Regulatory Agency (PPPRA). This agency was tasked with overseeing the fuel subsidy system.
Following nationwide protests against fuel subsidy removal in 2012, known as the #OccupyNigeria movement, the House of Representatives launched a probe into the sector. The resulting report recommended that Ahmadu Ali be prosecuted for his supervisory role in the mismanagement and abuse of the Petroleum Support Fund between 2009 and 2011.
Ironically, Farouk Lawan, who chaired the Ad Hoc House Committee on Fuel Subsidy that recommended the elder Ali’s prosecution, was later convicted for collecting a $500,000 bribe during the probe. He completed a five-year jail term in 2024.
#OccupyNigeria: A Turning Point
In January 2012, former President Goodluck Jonathan attempted to phase out the fuel subsidy, describing it as an unsustainable financial burden. His administration argued that the increasing costs were draining resources that could be used for critical infrastructure and development.
However, this decision sparked widespread demonstrations across Nigeria, with the #OccupyNigeria protests leading to a partial reversal of the decision. Citizens demanded that instead of removing subsidies, the government should prosecute corrupt oil marketers and complicit officials who were exploiting the system.
These public calls for accountability triggered EFCC investigations and prosecutions, including that of Mamman Ali and Christian Taylor. Although several of those charged were eventually acquitted, others received jail terms, with Ali and Taylor’s case standing out due to its drawn-out timeline and political undertones.
Years of Delayed Justice
The trial of Ali and Taylor began in 2012 but faced multiple delays and procedural setbacks that prolonged its resolution. Initially, Justice Adeniyi Onigbanjo presided over the case at the Lagos High Court. However, he later withdrew, prompting the reassignment of the case to Justice Mojisola Dada.
During the drawn-out proceedings, the EFCC increased the charges from 47 to 57 counts, adding further complexity to the trial. Despite persistent delays, including court reassignments and procedural objections, the EFCC continued to push for justice, culminating in this week’s convictions.
Fugitives Still on the Run
EFCC also named two other individuals—Olabisi Abdul-Afeez and Oluwaseun Ogunbambo—as co-conspirators in the fraudulent activities. Both are currently fugitives and have evaded arrest since the trial began. In her ruling, Justice Dada issued fresh arrest warrants for the two, emphasizing the court’s determination to ensure full accountability for all involved in the scheme.
A Glimpse of Closure in a Larger Scandal
The sentencing of Mamman Ali and Christian Taylor offers a form of closure for one of the most controversial chapters in Nigeria’s oil sector history. However, the broader issue of subsidy fraud remains unresolved, especially as the current administration grapples with ongoing concerns about fuel pricing and transparency.
President Bola Tinubu’s government, like its predecessors, has pledged to eliminate fuel subsidies altogether. Yet, the legacy of failed enforcement, political interference, and public distrust continues to haunt efforts to reform Nigeria’s oil and gas sector.
While the court’s ruling marks a significant milestone in Nigeria’s anti-corruption journey, it also underscores the urgent need for deeper reforms to prevent future abuse of subsidy programs. With billions lost to fraud over the years, the question remains whether Nigeria can ever truly reform its fuel subsidy system or if such cases will continue to drag on without systemic change.
