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The Economic and Financial Crimes Commission (EFCC) has recovered more than N5 billion and $10 million from contractors and government officials implicated in fraudulent activities related to the turnaround maintenance of Nigeria’s refineries located in Port Harcourt, Kaduna, and Warri.
Sources indicate that the agency is aiming to reclaim an additional N10 billion and $13 million allegedly misappropriated via contractors involved in maintenance work.
EFCC Chairman Ola Olukoyede personally oversaw the investigation due to his frustration with the non-functional state of the refineries, despite significant public funding.
Reports indicate that Nigeria’s four refineries have been mostly inactive for years, despite numerous rehabilitation attempts.
Subsequent administrations have allocated vast sums for their upkeep, yet the refineries in Warri, Kaduna, and Port Harcourt remain underperforming, resulting in the country relying on imported petroleum products.
The EFCC is reportedly investigating $1,559,239,084.36 for the Port Harcourt refinery, $740,669,600 for the Kaduna refinery, and $656,963,938 for the Warri refinery.
Insider sources mentioned that fraudulent activities such as over-invoicing, contract inflation, and dubious payments mainly contributed to the refineries’ failure to operate effectively despite substantial public investment over the years.
Former management teams of the three refineries were repeatedly questioned regarding these findings. One source stated that the commission has completed investigations into certain officials of the Nigerian National Petroleum Company Limited (NNPCL) connected to rehabilitation contracts, with charges against them forthcoming.
The source noted, “Our investigation into the turnaround maintenance of the nation’s refineries has revealed significant discoveries of large-scale fraud. Investigators found that fraudulent activities through over-invoicing, contract inflation, and questionable payments led to the refineries’ dysfunction.”
“Investigations have particularly spotlighted former management teams of the three refineries who were arrested multiple times to expose fraudulent activities that have prevented the refineries from providing optimal benefits to the Nigerian population.
To date, a total of $10 million and N5 billion has been recovered from individuals implicated in the fraud. Recoveries have been made from specific contractors and government officials involved in over-invoicing and inflated payments,” the source added.
It was also mentioned that some current and retired NNPCL management members and refinery officials may soon face charges.
“Investigations regarding certain NNPCL officials involved in rehabilitation contracts have concluded, and the commission is prepared to press charges against them. Both the previous and current management of NNPCL and the refineries could be prosecuted,” the source indicated.
Additionally, another source emphasized that the commission is on pace to recover further funds. “While we have already secured some funds, another $13 million and N10 billion found to have been diverted through contractors for maintenance are expected to be recovered soon,” the source disclosed.
Furthermore, the commission is looking into new allegations of contract inflation estimated at about $40 million, allegedly tied to NNPCL officials and contractors tasked with procuring equipment for rehabilitation efforts.
“Investigations into claims of contract inflation around $40 million involving certain NNPCL officials and contractors engaged to acquire equipment for the rehabilitation projects are ongoing,” the source stated.
As of the time of reporting, Dele Oyewale, the EFCC’s Head of Media and Publicity, could not be reached for comments, as calls and texts went unanswered.
A senior official from the commission, wishing to remain unnamed due to lack of authorization to discuss the issue, did, however, confirm the recovery efforts.
