Refinery Fraud: EFCC Recovers Billions, Moves to Prosecute Ex-NNPCL Officials

Refinery Fraud: EFCC Recovers Billions, Moves to Prosecute Ex-NNPCL Officials.

By Nsikak Sunday

The Economic and Financial Crimes Commission (EFCC) has recovered over ₦5 billion and $10 million from contractors and government officials implicated in the multi-billion naira fraud surrounding the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.

Investigations indicate that an additional ₦10 billion and $13 million siphoned through inflated contracts are currently being traced, with the agency vowing to recover them.

EFCC Chairman, Ola Olukoyede, is said to have personally supervised the investigation, expressing displeasure over the continued non-functionality of the nation’s refineries despite decades of massive public spending.

Years of Spending, No Results

Nigeria’s four refineries have remained largely moribund for decades, despite successive administrations approving billions of dollars for their rehabilitation. Instead, the country has continued to rely heavily on imported petroleum products.

Records show that a total of $1.56 billion was allocated for the Port Harcourt refinery, $740.6 million for the Kaduna refinery, and $656.9 million for the Warri refinery. Yet, these facilities have consistently failed to operate at optimal capacity.

Widespread Fraud Uncovered

Top EFCC sources revealed that fraudulent practices such as contract inflation, over-invoicing, and questionable payments were largely responsible for the persistent failure of the refineries.

According to one source:

“Our investigation into the turnaround maintenance of the nation’s refineries in Warri, Kaduna, and Port Harcourt has uncovered large-scale fraud. Several former management teams were repeatedly interrogated, and evidence showed that inflated contracts and suspicious payments crippled the rehabilitation efforts.”

The source confirmed that ₦5 billion and $10 million have so far been recovered from contractors and officials involved in the scheme.

Prosecution Imminent

Findings also revealed that both serving and retired officials of the Nigerian National Petroleum Company Limited (NNPCL), as well as past management of the refineries, may soon face prosecution.

 “Investigations are concluded on some NNPCL officials linked to the rehabilitation contracts. The Commission is ready to file charges, and both past and present management figures may be arraigned,” the source disclosed.

More Recoveries Expected

The EFCC is also probing fresh allegations of contract inflation amounting to about $40 million, allegedly linked to NNPCL officials and contractors responsible for procuring equipment for the rehabilitation projects.

“While significant funds have been recovered, additional sums of ₦10 billion and $13 million are still being tracked. The investigation into a fresh $40 million contract inflation scandal is also ongoing,” another insider revealed.

As of press time, EFCC’s Head of Media and Publicity, Dele Oyewale, could not be reached for official comments. However, a senior official of the Commission, who spoke off the record, confirmed the recoveries.