Nigeria's Economic and Financial Crimes Commission (EFCC) says it has uncovered a forged letter of credit (L/C) used by a Nigerian oil trading firm to falsely claim a government subsidy for imported fuel.

The Lagos High Court has heard how Nadabo Energy allegedly forged an L/C, purportedly from Enterprise Bank.

Unearned subsidies

Nadabo Energy is standing trial for allegedly earning the equivalent of nearly US$4 million in unearned fuel subsidies.

Prosecutors say some of this was obtained via an L/C for US$17.2 million, which appeared to be issued in October 2011 by Enterprise Bank in favour of Ashland Energy, a company that purportedly bought the fuel.

But the EFCC says it found document discrepancies insofar as the bill of collection described a much smaller shipment of fuel than the L/C documents described.

Other charges

Nadabo Energy and its owner, Abubakar Ali Peters, have also been arraigned at Lagos State High Court on a 21-count charge of obtaining money under false pretences, diversion of Federal Government funds and forgery.

According to court records, Nadabo Energy produced documents claiming to have imported 16.8 million litres of fuel, but fraudulently imported only 7.9 million litres.

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