How $2.4bn Subsidy Fraud Probe Triggered My Mother’s Kidnap – Ngozi Okonjo-Iweala

WTO chief recounts threats, five-day ordeal after rejecting fraudulent fuel subsidy claims

World Trade Organisation (WTO) Director-General Ngozi Okonjo-Iweala has recounted how her efforts to uncover an alleged $2.4 billion fuel subsidy fraud in Nigeria triggered threats against her and the kidnapping of her mother in 2012.

Okonjo-Iweala, who served as Nigeria’s finance minister under former President Goodluck Jonathan, said the kidnappers demanded that she resign from office and leave the country in exchange for her mother’s release.

She disclosed this during an interview with Bloomberg’s Francine Lacqua on The Leaders programme, published earlier this week.

According to her, the investigation began after officials noticed a sharp increase in claims submitted by fuel importers under Nigeria’s petroleum subsidy programme.

At the time, Nigeria relied heavily on imported refined petroleum products to meet domestic demand, with the government paying subsidies to enable importers to sell petrol at regulated prices.

However, the rising claims raised suspicions, prompting Okonjo-Iweala to seek presidential approval for an audit of the accounts.

“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 was followed by threats before her mother, Kamene Okonjo, was abducted.

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

Describing the incident, the WTO chief said the five-day ordeal was one of the most painful experiences of her life, as she feared that her actions in office could cost her mother her life.

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

Okonjo-Iweala 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.

She added that her mother still becomes distressed whenever the incident is discussed.

Asked whether she had considered resigning during the crisis, Okonjo-Iweala said she would have chosen 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 encouraged 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.

The former finance minister said she initially felt paralysed by fear and considered resigning to secure her mother’s release. She added that the experience left her with a sense of guilt that she continued to carry.

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

Reflecting on the experience, Okonjo-Iweala said the challenges she had faced over the years had made her more patient and strengthened her determination to seek solutions in difficult circumstances.

She also stressed the importance of protecting public resources, particularly in countries with limited financial means.

“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 Jonathan before assuming office as WTO director-general in March 2021.

Her mother was kidnapped from her home in Ogwashi-Uku, Delta State, in December 2012. The incident attracted widespread public attention and raised concerns about the safety of the finance minister’s family amid the controversy surrounding Nigeria’s fuel subsidy programme.

Source: Bloomberg/Arise news/Francis Ndubisi