Okonjo-Iweala Recounts How $2.4bn Subsidy Fraud Probe Led to Mother’s Kidnap

World Trade Organisation Director-General Ngozi Okonjo-Iweala has recounted how an investigation into suspected $2.4bn fraud in Nigeria’s fuel subsidy programme led to threats against her and the kidnapping of her mother in 2012.

 

The former Nigerian finance minister said the abductors demanded her resignation and departure from the country in exchange for her mother’s release.

 

She recounted the experience during an interview with Bloomberg’s Francine Lacqua on the Leaders programme, published on October 12, 2026.

 

According to a report by The Punch on Saturday, Okonjo-Iweala said the investigation began after officials noticed a sharp increase in claims submitted by fuel importers seeking payments under the federal government’s petroleum subsidy programme.

 

She said she alerted then-President Goodluck Jonathan to the suspected irregularities and obtained his approval to audit the accounts.

 

“We found about $2.4 billion worth of fraud. So we refused to pay,” she said, describing the outcome of the investigation.

 

Okonjo-Iweala said the decision was followed by threats against her before her mother, Professor Kamene Okonjo, was abducted.

 

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

 

Five-Day Ordeal

The former minister said her mother was held in a forest during the ordeal, which lasted five days, before escaping one night.

 

She described the incident as one of the most painful experiences of her life, saying she feared that her decisions in office could lead to her mother’s death.

 

Asked about the possibility of leaving her position to secure her mother’s freedom, Okonjo-Iweala said she would have prioritised her mother’s life over remaining in office.

 

She also recalled that her father urged her not to give in 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 the experience left her with feelings of guilt that she still carries, despite her mother’s survival.

 

What Happened in 2012?

Kamene Okonjo was kidnapped from her home in Ogwashi-Uku, Delta State, on December 9, 2012, while her daughter was serving as Nigeria’s finance minister under Jonathan.

 

Contemporary reports by Reuters and the BBC documented the abduction and the subsequent search for her captors.

 

She was released five days later, on December 14, 2012.

 

In a statement reported by Channels Television on December 17, 2012, Okonjo-Iweala linked the kidnapping to disputes over fuel subsidy payments and the government’s Subsidy Reinvestment and Empowerment Programme, known as SURE-P.

 

She said her mother had been told by her captors that the abduction was connected to the minister’s refusal to approve payments to certain oil marketers whose claims had not been verified.

 

At the time, the minister maintained that payments would be made to marketers whose claims had been verified through the relevant process, while unverified claims would not be paid.

 

The reported demand for her resignation was also documented in contemporaneous international coverage.

 

The Fuel Subsidy Investigation

Nigeria’s fuel subsidy programme was designed to enable petrol to be sold at regulated prices, with the government paying importers the difference between the regulated price and the cost covered by the subsidy arrangement.

 

During Okonjo-Iweala’s tenure as finance minister, the programme came under scrutiny over the scale of payments claimed by fuel importers and allegations of irregularities.

 

In her latest account, she said an examination of the claims revealed approximately $2.4bn in fraudulent payments, prompting the government to withhold payments on the disputed claims.

 

The $2.4bn figure represents Okonjo-Iweala’s account of the investigation. The interview and news reports reviewed for this article do not, by themselves, establish the figure as the outcome of a final judicial finding or prove that every disputed claim involved criminal fraud.

 

The distinction is important because suspected irregular payments, audit findings, criminal charges and convictions are different stages of establishing wrongdoing.

 

Okonjo-Iweala’s Current Role

Okonjo-Iweala became Director-General of the World Trade Organisation on March 1, 2021, becoming the first woman and the first African to lead the international trade body.

 

She previously served twice as Nigeria’s finance minister, including during Jonathan’s administration from 2011 to 2015.

 

Reflecting on the kidnapping, she said her experiences had made her more patient and strengthened her determination to address problems, particularly the diversion of public resources in countries with limited funds.

 

She said every public resource matters in a country where money is needed to fund essential services and development.

 

Her latest account revisits one of the most difficult periods of her time in public office, linking the pressure surrounding fuel subsidy payments to the threats and kidnapping she says followed the investigation.