An ongoing controversy has engulfed Gausiya Oil & Gas LLC following claims, supported by documents and correspondence spanning more than a decade, that Mr. Femi Dosunmu diverted $650,000 invested by Nigerian businessman, Alhaji Abubakar Rajab.
What began in 2008 as an ambitious plan to establish a chain of gas stations in the United States has since collapsed into a protracted dispute marked by allegations of fund diversion, disputed expenditures, and unresolved legal battles.
Records reviewed by this online newspaper indicate that the investment was intended to serve as the foundation for acquiring a Lukoil gas station, the first of ten planned outlets under the venture.
According to the documents, Alhaji Rajab released a total of $650,000 to Gausiya Oil & Gas LLC based on representations that the funds would be used strictly for the acquisition and operation of the franchise. However, the management of the funds, ownership structure, and financial decisions taken by Mr. Dosunmu have now become the subject of intense scrutiny, with Alhaji Rajab alleging that portions of the investment were diverted for personal use.
Written correspondence attributed to Mr. Dosunmu shows that the parties met in Washington, DC around April 2008, where an ownership structure was agreed upon. Under the arrangement, Alhaji Rajab, his wife, and daughter were to jointly hold 70 percent equity, Mr. Dosunmu 20 percent, while a third partner was allotted 10 percent. The company was subsequently incorporated in the United States.
Documents further indicate that the ownership structure was later altered, allegedly to satisfy vetting requirements by Lukoil. As a result, Mr. Dosunmu became the sole owner of record, while signing a separate understanding to hold the shares in trust for Gausiya Nigeria Ltd, an arrangement he claimed was undertaken with the knowledge and approval of Alhaji Rajab.
Financial records and email correspondence show that Alhaji Rajab initially released $450,000, followed by an additional $200,000, bringing the total investment to $650,000. An income and expenditure statement later submitted by Mr. Dosunmu showed deductions amounting to $46,430 for bank charges, travel, and what were described as “lobbyist” or “facilitator” expenses, leaving approximately $600,270 available in the United States for the project.
In written admissions, Mr. Dosunmu stated that $300,000 was paid to the franchise seller, while $100,000 was remitted to Lukoil as a refundable security deposit. He further disclosed that the remaining $200,000 required to complete the purchase was not paid to the seller but was instead secured through a mortgage placed on his personal properties.
The records reviewed suggest that this decision was allegedly taken without the prior consent or authorization of Alhaji Rajab, who was the investor. The case deepened following Mr. Dosunmu’s admission that $75,000 from the investment funds was used to settle his personal credit card debt. This admission reportedly became a major point of contention during reconciliation meetings held in 2018, where legal representatives of both parties sought an amicable resolution.
At those meetings, Alhaji Rajab’s representatives demanded the immediate refund of the $75,000, alongside a comprehensive account of all other expenditures, supported by verifiable receipts.
The failure to remit the outstanding $200,000 balance to the franchise seller reportedly triggered litigation in the United States, with the company being sued while also filing a counterclaim alleging fraud and deception. Additional concerns were raised over the fate of the initial $300,000 paid to the seller, the handling of the $100,000 Lukoil deposit—of which $75,000 was allegedly withheld for unpaid fuel supplies without clear documentation—the whereabouts of inventory and fuel products reportedly supplied shortly before the business was sold, and the absence of complete books of account despite repeated formal requests.
As of the last documented correspondence reviewed, Mr. Dosunmu had yet to provide full supporting documents, including receipts, bank statements, pleadings from the US lawsuit, and a financial reconciliation acceptable to Alhaji Rajab.
Alhaji Rajab’s camp insists that the issue at stake is not business failure but the alleged unilateral handling and diversion of entrusted investment funds.
“One thing comes through very clearly. I am the investor. I put up the money in good faith and trusted Femi to implement the business exactly as agreed. I relied on him to run the venture, manage the funds properly, and act strictly in the interest of the business — not to divert any part of the funds for personal use.
“That reliance and trust are central to my position and work strongly in my favour.
“Femi, on the other hand, had full control. He received the funds, handled the operations, dealt with regulators, and made the decisions. There are clear indications that some of the money was used personally and, more importantly, a full and transparent account was never rendered.
“From both a business and legal standpoint, that responsibility rests squarely with him, not me. The funds were never properly accounted for,” Alhaji Rajab had said.
Despite repeated reconciliation efforts and third-party mediation, Femi Dosunmu has shown no willingness to return the disputed funds, leaving the matter unresolved and deepening concerns.
