The fuel subsidy regime was a huge scam in the Nigeria oil and gas sector, with the state colluding with its friends to steal from the people. It was during this time that entrenched corruption such as inflation of the subsidy figures, the rise of proxy marketers, over-invoicing and non-record keeping became common.
At the peak of the subsidy fraud, the Nigerian state said it could not fund it anymore, arguing that its payment was taking a huge amount of monies from the federation account, thereby impeding the state’s ability to fund core infrastructures. Pursuant to that, by 31 December 2011, the subsidy was removed. This was followed by massive protest, with citizens holding a strong view that it was the huge corruption in the scheme that needed to be addressed and not subsidy removal.