Okonjo-Iweala: $2.4bn Subsidy Fraud Probe Triggered My Mother’s Kidnap

Francis Ndubuisi in Abuja

The Director-General of the World Trade Organisation (WTO), Dr Ngozi Okonjo-Iweala, has recounted how her efforts to uncover an alleged $2.4billion fuel subsidy fraud in Nigeria led to threats against her and the kidnapping of her mother.

Okonjo-Iweala said the abductors demanded that she resign as finance minister and leave the country in exchange for her mother’s release.

She recounted the ordeal during an interview with Bloomberg’s Francine Lacqua on the Leaders programme, published earlier this week.

The former finance minister said the investigation began after officials noticed that claims submitted by fuel importers under Nigeria’s subsidy programme were increasing sharply.

Nigeria, despite being an oil-producing country, relied on imported refined petroleum products to meet domestic demand at the time.

Under the subsidy arrangement, importers received government payments that enabled them to sell petrol at regulated prices.

However, Okonjo-Iweala said the amounts being claimed had risen to levels that raised suspicion.

“So, I went to the president and said, look, something is going on here. Could we audit the accounts? And he said, ‘yes, go ahead.’ And we found about $2.4 billion worth of fraud. So, we refused to pay,” she said.

She said the decision triggered threats against her before her mother was abducted.

“I was told that for her to be released, I should resign and leave the country,” she said.

Describing the experience, Okonjo-Iweala said the five-day ordeal was among the most painful periods of her life because she feared that her actions could lead to her mother’s death.

“It was a terrible, terrible five-day ordeal. I think it’s the worst in my life,” she said.

She disclosed that her mother was held in a forest before escaping one night.

“She was held in the middle of a forest, and one night she escaped. She’s still alive. She’s 96 now,” she said, adding that her mother still becomes distressed whenever the incident is mentioned.

Asked whether she had considered quitting her job during the crisis, Okonjo-Iweala said she would have prioritised her mother’s life over remaining in office.

“Between my mother, having my mother alive and staying in a job, I would pick my mother any day,” she said.

However, she recalled that her father urged her not to surrender to the kidnappers’ demands.

“He said, ‘we don’t give in to blackmail.’ And he said, ‘you’ve got to carry on. You’ve got to go to work,” she recounted.

Okonjo-Iweala said she initially felt paralysed by fear and considered resigning to secure her mother’s release, adding that the experience left her with a sense of guilt that she still felt today.

“I never dreamt my parents could ever be touched in this way – that people would be that evil,” she said.

She added that her experiences over the years had made her more patient and helped her focus on finding solutions when confronted with difficult situations.

“I feel that this is a real fight that has to be waged. If you are a country that is not that rich, every single penny counts,” she said.

Okonjo-Iweala served as Nigeria’s finance minister under former President Goodluck Jonathan before becoming director-general of the WTO in March 2021.

Her mother, Kamene Okonjo, was kidnapped from her home in Ogwashi-Uku, Delta State, in December 2012.

The incident drew national attention amid concerns over the safety of the finance minister’s family.