EFCC Recovers N5bn, $10m in Refinery Maintenance Fraud

The Economic and Financial Crimes Commission (EFCC) has recovered more than N5bn and $10m from contractors and government officials indicted in fraudulent activities linked to the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.

Sources disclosed that the commission is also pursuing an additional N10bn and $13m allegedly siphoned through contractors engaged in the projects.

Findings revealed that EFCC Chairman, Ola Olukoyede, personally assumed oversight of the investigation due to his concern over the continued non-functioning of the nation’s refineries despite extensive government spending on their rehabilitation.

Nigeria’s four refineries have remained largely inactive for decades. Despite successive administrations allocating billions of dollars for their turnaround maintenance, facilities in Warri, Kaduna, and Port Harcourt have not returned to optimal performance, leaving the country dependent on imported petroleum products.

The EFCC is examining $1.55bn allocated to the Port Harcourt refinery, $740.6m released for Kaduna, and $656.9m approved for Warri. According to investigators, irregular practices such as over-invoicing, contract inflation, and questionable payments contributed significantly to the facilities’ inability to deliver.

Former management teams of the three refineries have been interrogated multiple times in relation to the findings. One source confirmed that probes into some officials of the Nigerian National Petroleum Company Limited (NNPCL) involved in the contracts had been concluded, and charges were being prepared.

The source stated, “Our investigation into the turnaround maintenance of the nation’s refineries in Warri, Kaduna and Port Harcourt, have yielded major discoveries of large-scale fraud. Investigators discovered fraudulent dealings through over-invoicing, contract inflation and questionable payments were largely responsible for the malfunctioning of the refineries. Specifically, investigations flagged former management teams of the three refineries who were arrested several times and grilled to uncover fraudulent dealings that have not made the refineries deliver optimal benefits to Nigerians.

“A total sum of $10m and N5bn have so far been recovered from suspects indicted in the fraud. The recoveries were made from some contractors and government officials involved in over-invoicing and inflated payments.”

The source added that some serving and retired officials of the NNPCL and the refineries may be charged soon. “Investigations are already concluded on some officials of the NNPCL involved in the rehabilitation contracts and the commission is ready to file charges against them. Both former management and present management of the NNPCL and refineries may be charged,” the source said.

Another source confirmed ongoing efforts to recover additional sums. “While we have recovered some money, another $13m and N10bn discovered to be siphoned through contractors engaged in the maintenance are due to be recovered,” the source noted.

The EFCC is also investigating fresh allegations of contract inflation amounting to about $40m, reportedly linked to officials of the NNPCL and contractors engaged in procuring equipment for the rehabilitation projects. According to the source, “Investigation is still ongoing on allegations of contract inflation in the region of $40million involving some officials of NNPCL and some contractors engaged to procure equipment for rehabilitation works.”

As of press time, the EFCC Head of Media and Publicity, Dele Oyewale, was unavailable for comment as calls and text messages were not answered. However, a senior commission official, who was not authorised to speak publicly, confirmed the recoveries.