Court Admits Fresh Evidence in Nadabo Energy’s N1.4bn Subsidy Fraud Trial

​The trial of the Managing Director of Nadabo Energy Limited, Abubakar Ali Peters, took a significant turn this week at the Lagos State High Court in Ikeja. Justice Ismail Ijelu admitted a substantial volume of evidence presented by the Economic and Financial Crimes Commission (EFCC) as the prosecution intensifies its case in the alleged N1.4 billion petroleum subsidy fraud.

​This high-profile legal battle, which involves a 27-count charge of obtaining funds under false pretenses and forgery, was previously presided over by Justice C.A. Balogun. Following the judge’s retirement, the case was reassigned to Justice Ijelu to ensure the continuity of the proceedings.

​The Prosecution’s Case

​The core of the EFCC’s case rests on allegations that the defendants defrauded the Federal Government by submitting forged documents to claim subsidy payments under the Petroleum Support Fund. Prosecutors allege that while Nadabo Energy claimed to have imported nearly 20 million liters of Premium Motor Spirit (PMS) through specific vessels, the actual volume imported was significantly lower.

​During the proceedings on June 29 and 30, 2026, the EFCC’s third prosecution witness (PW3), investigator Adaobi Amanda Obiakor, provided detailed testimony. She recounted the extensive investigation process, which originated from petitions received in January 2012 from the Minister of Petroleum Resources and various civil society groups.

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​The court admitted into evidence a wide array of documents, including:

• ​Correspondence between the EFCC and the Petroleum Products Pricing Regulatory Agency (PPPRA).
• ​Records from Enterprise Bank and Skye Bank (now Polaris Bank) regarding subsidy payments and transaction financing.
• ​Shipping and logistics documentation related to the vessels MT Evridiki and MT St. Vanessa.
• ​Records from the Corporate Affairs Commission (CAC) and communications with Petrocam Trading.
• ​An email correspondence initially sent to the former EFCC chairman, Abdulrasheed Bawa, which was admitted despite defense objections regarding electronic evidence compliance.

​Defense Challenges

​During the cross-examination on June 30, the defense counsel, Paul Daodu, SAN, sought to challenge the witness’s direct connection to some of the admitted evidence. Under questioning, Obiakor acknowledged that her name did not appear on several of the investigation reports and documents submitted to the court. Furthermore, she confirmed that no legal practitioner was present when the defendants’ extra-judicial statements were recorded, though she maintained that these statements were given voluntarily.

​The witness also clarified that while she was part of the investigative team that visited the Lagos depot, she was not involved in the team’s site visit to Port Harcourt.

​Next Steps

​Following the conclusion of the initial witness testimony and the cross-examination phase, Justice Ijelu adjourned the trial. The court is set to reconvene on October 12 and 13, 2026, to allow for the continuation of the trial and further examination of the evidence.

​The proceedings remain a critical test of the EFCC’s efforts to hold marketers accountable for alleged malfeasance during the petroleum subsidy regime, a period characterized by intense scrutiny of government spending and corporate integrity in the energy sector.