Nigerian billionaire and Chairman of Geregu Power Plc, Femi Otedola, has filed a ₦1 billion libel suit against Umar Sani, former spokesperson to ex-Vice President Namadi Sambo, over allegations linking him to petroleum subsidy fraud.
Otedola, in a strongly worded statement on Sunday, described Sani’s claims as “false, baseless, and malicious,” insisting that his company, Zenon Petroleum and Gas Limited, never participated in subsidy claims.
“My attention has been drawn to a mischievous and malicious publication written by one Umar Sani, attempting to twist facts and drag my name into disrepute and allegations of complicity in the subsidy fraud,” Otedola said. “His insinuations are false, baseless, and a shameless attempt to pander to lies and rewrite history.”
The businessman explained that Zenon Petroleum was solely a diesel importer, not a trader in Premium Motor Spirit (PMS), which was the only product eligible for subsidy under the Petroleum Subsidy Fund (PSF) scheme.
“Zenon Petroleum and Gas Limited was wholly an importer and trader of diesel with a market share in excess of 90%, never traded in PMS, and as such could not have claimed for subsidy,” Otedola clarified. “Diesel had long been deregulated even before the adoption of the PSF and did not fall under petroleum products to be claimed under the subsidy regime.”
Recounting his role in exposing subsidy corruption, Otedola said he was the first to alert former President Goodluck Jonathan to the “monumental fraud” in the PSF scheme.
“I was a member of President Jonathan’s Economic Team. I am the one who first alerted the President of the monumental fraud being perpetrated by economic saboteurs in the PSF scheme,” he said. “If I was complicit in subsidy theft, would I be the one to raise the alarm and blow the whistle on myself?”
He noted that when Jonathan initially dismissed the matter, he escalated it to then-Senator Bukola Saraki, who raised it in the Senate, paving the way for parliamentary and other investigations.
Otedola also revisited the 2012 bribery scandal involving former lawmaker Farouk Lawan. He maintained that his involvement was part of a sting operation conducted in collaboration with the Department of State Security (DSS).
“The money was provided by the DSS, duly marked, and handed over to me under security surveillance. I then gave it to Farouk Lawan in line with the sting operation. That is on record,” Otedola said.
“To twist that carefully documented operation into an indictment against me is laughable and only exposes the ignorance of Mr. Sani. You may be aware that Hon. Lawan was subsequently convicted and sentenced to five years’ imprisonment for bribery.”
The businessman urged President Bola Tinubu to publish the suppressed Aigboje Aig-Imoukhuede report into subsidy fraud, which he claimed was buried by the Jonathan administration.
“I implore President Bola Ahmed Tinubu to release the full Aig-Imoukhuede report on subsidy fraud, as Nigerians deserve to know the truth. Let the report be made public so the real subsidy thieves can be unmasked,” he said.
Addressing questions about his past financial obligations, Otedola said his debts to the Asset Management Corporation of Nigeria (AMCON) after the 2008 global economic crisis were transparently settled under a court-supervised process.
“I gave up my assets worth hundreds of billions of naira to settle my obligations under a court-ordered settlement,” he explained. “It is on record that AMCON itself publicly commended my approach and told other debtors to follow my example.”
Otedola vowed to pursue the ₦1 billion lawsuit to conclusion as a deterrent to others.
“Because of these deliberate lies and unfounded allegations, I have instructed my lawyers to file a ₦1 billion libel suit against Umar Sani,” he said. “People must learn that reputations are not to be toyed with for cheap propaganda.”
He urged Nigerians to read his memoir, Making It Big, for factual details about his role in the subsidy era. “I have nothing to hide and I have always acted in the interest of truth and accountability. Those who benefited from subsidy fraud know themselves. I will not sit back and allow falsehood to be written into history.”
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