Refinery Maintenance Scandal: EFCC Recovers Billions, Prosecution of Former NNPCL Officials Imminent
The Economic and Financial Crimes Commission (EFCC) has recovered over ₦5 billion and $10 million from contractors and government officials implicated in fraudulent activities linked to the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.
Sources indicate that the commission is actively working to recover an additional ₦10 billion and $13 million believed to have been siphoned by contractors involved in the projects.
The EFCC Chairman, Ola Olukoyede, is personally overseeing the investigation, reportedly due to his dissatisfaction with the persistent non-performance of the refineries despite substantial government investments over the years.
Nigeria’s four state-owned refineries have largely remained non-operational for decades. Despite multiple rehabilitation efforts and massive funding allocations, the facilities in Warri, Kaduna, and Port Harcourt have continued to underdeliver, forcing the nation to depend heavily on petroleum imports.
The anti-graft agency is currently investigating the disbursement of $1.56 billion allocated to the Port Harcourt refinery, $740.67 million for Kaduna refinery, and $656.96 million approved for Warri refinery. According to insiders, the inability of these facilities to function effectively is rooted in widespread corruption, including contract inflation, over-invoicing, and suspicious payments.
EFCC operatives have repeatedly interrogated former management staff of the three refineries as part of the ongoing probe. Investigations have reportedly been concluded in several cases, and charges are being prepared against certain officials of the Nigerian National Petroleum Company Limited (NNPCL) involved in the contracts.
An official familiar with the matter stated:
“Our investigation into the rehabilitation of the Port Harcourt, Kaduna, and Warri refineries has uncovered significant fraud. Over-invoicing and inflated contracts are major contributors to the refineries’ ongoing failure.”
The source added that both former and current officials of the NNPCL and refinery management teams may face prosecution soon.
“A total of $10 million and ₦5 billion has so far been recovered from individuals and contractors implicated in the scheme. These funds were obtained from those involved in inflated payments and fraudulent contract dealings,” the source said.
Further efforts are underway to recover an additional $13 million and ₦10 billion traced to contractors associated with the refinery projects.
In addition, the EFCC is examining new allegations of contract inflation amounting to approximately $40 million. These accusations involve current NNPCL officials and contractors tasked with procuring equipment for the refineries’ rehabilitation.
“Investigations are ongoing into claims of inflated equipment procurement contracts, valued at around $40 million,” the source confirmed.