Nadabo Energy CEO Rearraigned Over Alleged N1.4 Billion Federal Oil Subsidy Fraud in Lagos

Abubakar Peters and Nadabo Energy face 27 counts of forgery and oil subsidy fraud. EFCC alleges the CEO used fake documents to obtain N1.4 billion from the FG.

By: AXL Media

Published: Apr 1, 2026, 4:25 AM EDT

Source: The information in this article was sourced from Business Hallmark

A Judicial Reassignment for High Profile Financial Crimes

The long running legal proceedings against Abubakar Peters and his firm, Nadabo Energy Limited, entered a new phase this week following a mandatory reassignment of the case. Previously presided over by Justice C.A. Balogun, the matter was moved to the court of Justice Ismail Ijelu following the former judge’s retirement from the bench. This procedural shift required the defendant to be rearraigned, effectively restarting the formal judicial process for the 27 counts of fraud and forgery brought by the Economic and Financial Crimes Commission. The transition highlights the persistent nature of oil subsidy litigation within the Nigerian judicial system.

Allegations of Forged Documentation and Inflated Volumes

At the core of the EFCC’s prosecution is the allegation that Nadabo Energy utilized falsified shipping and insurance records to siphon funds from the federal government. According to the commission’s spokesperson, Dele Oyewale, the defendants purportedly claimed subsidy payments for approximately 19.5 million liters of petrol allegedly sourced from Ashland SA in Switzerland. However, investigators maintain that the actual volume imported was significantly lower, totaling just over 6.5 million liters. This discrepancy allowed the defendants to allegedly obtain nearly N978.4 million through fraudulent representations regarding the cargo transported by the vessels MT American Express and MT St. Vanessa.

The Mechanics of the Subsidy Manipulation

The prosecution detailed how the alleged fraud was facilitated through the creation of a fraudulent Certificate of Marine Insurance. This specific document, numbered 0047851 and purportedly issued by Staco Insurance Plc, was used as a primary piece of evidence to validate the importation claims under the Petroleum Support Fund. By presenting these forged instruments to federal authorities, Peters and his company were able to satisfy the administrative requirements for subsidy disbursement while bypassing the actual physical import constraints. The EFCC argues that this sophisticated paper trail was designed specifically to deceive the state and facilitate the illegal acquisition of public funds.