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Fuel Subsidy Scam: Ministry of Finance sacks Audit Firms – Akintola Williams & Co and Adekanola & Co



Ngozi Okonjo-Iweala, Minister of Finance

Last Wednesday, the House of Representatives AdHoc Committee on Monitoring of the Subsidy Regime submitted a report claiming that the Nigerian National Petroleum Corporation (NNPC), the Petroleum Products Pricing and Regulatory Agency (PPPRA) and 72 other firms were involved in a N1.07tn scam. The money was said to have been fraudulently paid to oil marketers.

Following this discovery, the looted funds were promptly asked to be returned within three months.

However, in another development over the weekend, the Federal Government has sacked the accounting and auditing firms of Akintola Williams & Co and Adekanola & Co. The two firms were responsible for certifying the documents and claims of marketers before payment.

The statement from the Ministry of Finance reads:

“Concerned about the management of the subsidy regime, the Federal Ministry of Finance has for the last two months been reviewing aspects of the implementation of the subsidy regime related to its functions. The review has produced a lot of useful details on what was wrong with the system and what needs to be done to ensure improvement going forward.

The review process kicked off in February when the ministry and relevant government agencies held a meeting with bankers and marketers at the instance of President Goodluck Jonathan. This was followed by a subsequent session with the accounting and auditing firms to re-evaluate their work.

Based on the review, the Ministry has taken the following steps:

• The services of the audit and accounting firms responsible for certifying the documents and claims of marketers before payment have been terminated. The companies are Akintola Williams and Co and Adekanola and Co.

• The Ministry has established a committee made up of credible and experienced persons from the private and public sector with strong technical component under the chairmanship of Mr. Aigboje Imoukuede to examine the claims of payment arrears for 2011 currently being made by marketers. This is to ensure that only genuine claims are honoured.

• The ministry is also finalising a new and more effective system to replace the current arrangement and, in this regard, a second committee has been set up to propose a good way to forward.

Based on other outcomes of the review, the ministry will take further actions as necessary.

Sacking the auditing firms to me seems like ‘medicine after death’. I am not saying it is not a good move by the Ministry of Finance, but if getting the money returned is the ultimate aim, then I really don’t see how this action would lead to that. Or maybe I’m wrong.

So, please share with me. Is sacking the audit firms a step in the right direction? Do you think these funds can actually be recovered by the Federal Government? What is the best step to be taken in order to recover these funds?

Here is the list of companies said to have been fraudulently paid from the Fuel Subsidy funds and the amount the Federal Government is asking them to refund:

1. ACORN PLC ….. N8,514,900,513.00
2. ALIMINNUR RESOURCES LTD ….N2,543,800,931.00
3. AMG PETRO-ENERGY LTD …. .N7,226,773,136.00
4. ANOSKYE GROUP OF COMPANIES LTD …..N1,318,443,535.00
5. ASCON OIL AND GAS COMPANY …..N4,451,932,090.00
6. AVANT GARDE ENERGY ….. N1,154,824,298.00
7. A-Z PETROLEUM ….. N8,065,557,645.00 owned By Chika Okafor
9. CONOIL PLC …..N3,027,526,589.00 owned Mike Adenuga
10. CRUST ENERGY LTD …..N1,192,651,581.00
11. DOWNSTREAM ENERGY SOURCE LTD …..N2,947,780,261.00
12. DOZZY OIL AND GAS LTD …..N1,587,298,801.00
13. DUPORT MARINE LTD …..N3,555,127,358.00
14. ECO-REGEN LTD …..N3,339,101,218.00
16. FIRST DEEP WATER DISCOVERY LTD …..N932,207,739,.00
17. FRADRO INTERNATIONAL LTD …..N3,661,643.268.00
18. FRESH SYNERGY LTD …..N1,417,029,059.00
19. HEYDEN PETROLEUM …..N3,345,456,733.00
20. IBAFON OIL LTD …..N1,474,479,459.00
21. IMAD OIL &GAS LTD …..N2,701,002,852.00
22. INTEGRATED OIL & GAS …..N13,252,055,429.00
23. INTEGRATED RESOURCES LTD …..N1,166,486,995.00
24. IPMAN INVESTMENT LTD …..N7,538,586,178.00
25. KNIGHTS BRIDGE …..N1,685,869,439.00
26. UNETRALE OIL SUPPLY & TRADING CO. …..N1,213,903,930.00
27. UNGO OIL AND GAS COMPANY LTD …..N1,201,297,922.00
28. LLOYDS ENERGY LTD …..N4,370,512,172.00
29. LOTTOU OIL &GAS LTD …..N1,427,429,910.00
30. MAIZUBE PETROLEUM LTD …..N5,509,407,903.00
31. MATRIX ENERGY OIL & GAS LTD …..N11,211,040,786.00
32. MENOL OIL & GAS LTD …..N4,333,348,489.00
33. MOB INTEGRATED SERVICES …..N5,066,786,851.00
34. MOBIL OIL NIGERIA PLC …..N2,660,968,597.00
35. MUT-HASS …..N1,102,084,041.00
36. NADABO ENERGY LTD …..N2,660,902,801.00
37. NASAMAN OIL SERVICES LTD. …..N3,441,253,193.00
38. NATICEL PETROLEUM LTD …..N5,276,169,320.00
39. NEPAL OIL &GAS SERVO LTD …..N2,353,911,978.00
40. NIPCO PLC …..N7,838,353,057.00
42. OCEAN ENERGY …..N1,778,180,051.00
43. OILBATH NIGERIA LTD …..N1,019,644,138.00
44. ONTARIO NIGERIA LTD …..N4,248,727,148.00
45. ORIGIN OIL &GAS LTD …..N4,141,367,099.00
46. PETROTRADE ENERGY LTD …..N908,805,371.00
47. PHOENIX OIL COMPANY LTD …..N1,827,838,204.00
48. PRUDENT ENERGY & SERVICES LTD …..N1,360,898,638.00
49. RAINOIL LTD …..N1,266,773,492.00
50. ROCKY ENERGY LTD …..N1,620,110,167.00
51. RYDEN OIL LTD …..N451,150,983.00
52. SEA PETROLEUM & GAS CO. …..LTD N1,019,571,609.00
53. SEDEC ENERGY LTD …..N845,226,771.00
54. SETANA ENERGY LTD …..N2,791,264,070.00
55. SHEILD PETROLEUM CO. NIG. LTD …..N1,502,198,610.00
56. SIFAX OIL &GAS COMPANY LTD …..N3,589,063,041.00
57. SOMERSET ENERGY SERVICES LTD …..N2,172,206,037.00
58. STONEBRIGDE OIL LTD …..N1,784,158,258.00
59. SULPHUR STREAMS LTD …..N4,758,693,054.00
60. SWIFT OIL LTD …..N5,062,403,555.00
61. TAURUS OIL & GAS LTD …..N6,472,821,001.00
62. TECHNO OIL LTD …..N547,179,342.00
63. TONIQUE OIL SERVICES LTD …..N3,827,112,622.00
64. TOP OIL & GAS DEV CO. LTD …..N7,367,662,306.00
65. TOTAL NIGERIA PLC …..N1,931,075,306.00
66. VALCORE ENERGY LTD …..N8,709,548,082.00
67. VIVENDI ENERGY LTD …..N1,127,773,642.00

Meanwhile, the ‘Save Nigeria Group’ led by Pastor Tunde Bakare has served a notice to the Federal Government that it would begin mass protests in Lagos and other towns in the country following the report on how N1.7tn was looted by fuel marketers and government agencies.

Nigerians are really angry about this development and it is high time the leaders we elected into power prove that they are capable of running the affairs of the nation in a transparent and honest way.

News Source: Vanguard News

Adeola Adeyemo is a graduate of Industrial Relations and Personnel Management from University of Lagos. However, her passion is writing and she worked as a reporter with NEXT Newspaper. She believes that anything can be written about; anything can be a story depending on the angle it is seen from and the writer's imagination. When she is not writing news or feature articles, she slips into her fantasies and creates interesting fiction pieces. She blogs at


  1. Uchechi

    April 22, 2012 at 9:12 am

    Good to know!

  2. Ken

    April 22, 2012 at 9:36 am

    Issues like this makes me question what the purpose of our audit firms are. Are they just endorsers of bad processes? This is the same question that lingered in the mind of Nigerians after the collapse of several “top” Nigerian banks. Their accounts were audited and signed of as “true and fair” by the top auditing firms.

    Sadly, this practice by audit firms of turning a bad eye to wrong processes is a global phenomenon.

    Is the audit and accounting profession really what it’s said to be?

  3. Treasures

    April 22, 2012 at 9:36 am

    This is great! There’s hope for the Nation. At least we can now point fingers, it’s a step in the right direction. We hope the next step follows soon (prosecutions and jail terms).

  4. Miss Pepeye

    April 22, 2012 at 9:38 am

    I should have known that Akintola Williams firm too is corrupt. Naija sha

  5. King Ezechuchuw

    April 22, 2012 at 10:04 am

    let there a serious and conscious fight agaist corrution with capital punishment no matter how small its all this will stop in Nigeria.

  6. Naz

    April 22, 2012 at 10:31 am

    my God!! *mouth open* (dats all i can say)

  7. ogo

    April 22, 2012 at 11:06 am

    STORY!! Dnt be decieved my dear! I work for one of d coys on d list and its all scam! They r not refunding anything oo… Its just all show, at d end of d day.. They will not do a damn thing about it!!! Cos the amount they wrote on d list, is d amount we collected for all d transactions we need, so how can they even say we wld refund it all…. Dnt get me wrong oh! Sumthing really has to be done about this looting by the oil sector.. But we all know dat NOTHING is gon’ be done! Shikena!

  8. doppleganger

    April 22, 2012 at 12:17 pm

    the future of Nigeria… drear! here’s hoping something is done ASAP cos as far as i know, the only person who has gotten what’s coming to ’em since the inception of “democracy” is ibori… and this came after he’d spent and enjoyed most of it!

    bet if the UK wasn’t involved, it would have been the same old case of catching the thief and marrying ’em…

    Typical! SMH


    April 22, 2012 at 12:43 pm

    Yes,sacking the auditing firms is a step in the right direction!It makes no difference if their error was by mistake or intentional.Someone has to show some responsibility or pay for their actions. When one is hired to do a job,they better do it well.
    Every other group, and/or individual involved should be prosecuted too.The money must be recovered. The federal government must tell Nigerians when this is done and what they did with the money.We need TRANSPARENCY!! We need to be enforcing our laws too,regardless of who is involved. God bless Nigeria.

    • On point

      April 22, 2012 at 7:02 pm

      100% SUPPORT

  10. Me2me

    April 22, 2012 at 12:55 pm

    It would have been okay to sack the auditing firms involved if they were inefficient but as they have committed a felony i feel they should be persecuted. First of all they should be banned from operation for 5yrs then the individuals directly involved should have their licence to audit stripped from them. This will help future auditing firms sit up. I personally don’t believe in appointing “credible” individuals to do the job. That will bring forth more corruption and govt expense

  11. jamar

    April 22, 2012 at 1:04 pm

    expecting these people to pay back is like trying to scoop spilt milk from the floor.its simple…… They should be punished for the crimes they committed,all these names on the list,thats the most that will be done to them.we have to speak up against looting of our fund and corruption.thats how dimeji bankole is on the loose now,and nobody is sying anything.these criminals will soon go scot free except we speak up and let them pay by being severly punished.its high time we stopped smiling at these criminals let every action have its consequence so that people will learn to be responsible. thank you.

  12. emeka

    April 22, 2012 at 1:44 pm

    Lovely. Good to know that this country is heading towards a right direction. Hope this sustained

  13. Basheer Yussef Radda

    April 22, 2012 at 2:11 pm

    mtsw… Its just a drama

  14. Mz Socially Awkward...

    April 22, 2012 at 2:55 pm

    Na wa o. See Nigeria’s looted money!

  15. Merciful

    April 22, 2012 at 5:16 pm

    My God does not Sleep or Slumber…… More to be exposed!!!

    • Gidi

      April 23, 2012 at 11:24 am

      After the exposure, what next?

  16. ify

    April 22, 2012 at 5:39 pm

    na wah oh! i’m speechless

  17. businesswoman

    April 22, 2012 at 6:47 pm

    ah ah y did dey emphasize on conoil being owned by mike adenuga…anywayz tis is a giant step to further development i hope.iLOVE Nigeria,long live Nigeria,iREP Naija!!!

  18. Danny

    April 22, 2012 at 9:01 pm


  19. Ajoke

    April 22, 2012 at 9:08 pm

    Wow, as if over 40 companies managed to fraudulently collent money from the Federal government, this is a disgrace.

  20. Jummy

    April 22, 2012 at 9:13 pm

    The sacking of these auditors sure come at the right time. All those involved in the fraud must be brought to book and persecuted speedily. I wish Dr. iweala well in ger quest to sanitise the sector.

  21. Gidi

    April 23, 2012 at 7:41 am

    From the name of the head of that committee set up, it is obvious nothing new will come out of it. Credible and experienced my foot!!!
    Why do we like deceiving ourselves?

  22. taiwo

    April 23, 2012 at 12:48 pm

    So here is my question: What then gave them right to come on the public domain to demand N1.3 trillion Naira from Nigerians with such audaciousness ! its a pity , i feel bad for the beautiful people that lost their lives in the struggle and we demand that ALL the actors (including the President !) must be held accountable for their blood and our loss. Nigeria’s leadership class are a “den of thieves” and they will be Judged by Generations alive and the ones Unborn. We struggled , we fought and we are conquering. The voice of the people and the cries of the dead in the struggle have been heard, may we never let in be silenced by our indifference, we have started a good thing, let us continue in it.!!! To Deziani Allison-Madueke, May your name and all you do always bring you shame- as you have brought hardship to millions of us Nigerians and sorrow to the Families of the dead by your greedy , ill-informed action. 9ja4life !

  23. Nekky

    April 23, 2012 at 4:23 pm

    I dont really blame evry one that is pointing accusing fingers on the audit firms. You think its actually easy to detect fraud when you are only called to sign off on a vessel of petrol that is on the high sea of which you might not have access to determine the actual quantity in the vessel. Now the saga has started you blame it on the audit firm. Being an auditor in the past i can remember auditing so many banks and i cant remember us givin them a clean opinion. In most cases we give them an except for opinion but when the problem starts people will not check our report the will just conclude that a clean opinion was given. Please its better you know the facts before jumping into conclusion

  24. tatafo!

    April 23, 2012 at 6:27 pm

    And so?? Will the next two firms hired to audit prevent money from being looted in the future? Exposes are nothing new, nothing has changed.

  25. nkelly

    May 2, 2012 at 11:53 am

    Some of this companies are even been owned by serving ministers, yet they still claim they are serving naija….Please prosecute all found guilty, no stories.

  26. Evutaphy jacobs

    May 2, 2012 at 12:16 pm

    My question is this,honestly specking is mass rally realy the solution,Big NO,because people u to arrest also have who feed from them and they will be part of this rally we are talking about,to me they should disgrase them internationally by bring them to international media,freez thire forign and home account,crumble thire business,and in conclusion,pplace in one of worshest prison in country,

  27. Evutaphy jacobs

    May 2, 2012 at 12:22 pm

    My question is this,honestly specking is mass rally really the solution,Big NO,because those people u to want to arrest also have those or some people who feed from them and they will be part of this rally we are talking about,to me they should be disgrase internationally by bring them to international media,freez their forign and home account,crumbling their business,and in conclusion,place them in one of the whorshest prison in the country and should stay for the rest of their life,then this will save as an exmpple to others.

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