$3bn Refinery Fraud: EFCC Uncovers N80bn in Sacked MD’s Bank Accounts

In a significant development that has sent shockwaves through Nigeria’s energy sector, the Economic and Financial Crimes Commission (EFCC) has uncovered a massive financial scandal involving the rehabilitation of the nation’s refineries.

The commission has arrested the recently dismissed managing directors and top officials of the Port Harcourt Refining Company, Warri Refining and Petrochemical Company, and Kaduna Refining and Petrochemical Company.

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Investigations have revealed that approximately N80 billion was found in the bank accounts of one of the sacked managing directors, raising serious concerns about the mismanagement of funds allocated for refinery rehabilitation.

Arrests and Investigations

The EFCC’s probe centers on the alleged misappropriation of $2.96 billion earmarked for the rehabilitation of Nigeria’s three major refineries. The breakdown of the funds under investigation includes $1.56 billion for the Port Harcourt refinery, $740 million for the Kaduna refinery, and $656 million for the Warri refinery. The former Managing Director of the Port Harcourt Refining Company, Mr. Ibrahim Onoja, and the ex-Managing Director of the Warri Refining and Petrochemical Company, Mr. Efifia Chu, are among those arrested. Additionally, the EFCC is scrutinizing the activities of 13 senior ex-officials of the Nigerian National Petroleum Company Limited (NNPCL), including the immediate past Group Chief Executive Officer, Mele Kyari.

Financial Discrepancies and Public Outcry

The discovery of N80 billion in the personal accounts of one of the sacked managing directors has intensified public outrage. This revelation has prompted calls from civil society organizations, such as the Socio-Economic Rights and Accountability Project (SERAP), urging the NNPCL to account for missing funds and to invite the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to investigate the matter thoroughly. The Auditor-General’s 2021 report highlighted unaccounted funds amounting to N825 billion and $2.5 billion meant for refinery rehabilitation and other oil revenues, further exacerbating concerns about financial mismanagement within the NNPCL.(Vanguard News)

Operational Challenges and Stakeholder Reactions

Despite the allocation of substantial funds for refinery rehabilitation, the Port Harcourt and Warri refineries have struggled to operate at optimal capacity. The Port Harcourt refinery has been operating below 40% capacity since its revamp, while the Warri refinery was shut down less than a month after resuming operations due to safety concerns. Industry experts and stakeholders have criticized the NNPCL for misleading the public about the operational status of the refineries. Energy expert Kelvin Emmanuel described the televised commissioning of the refineries as a “charade,” accusing the government of staging the event to mislead the public.

What you should know

The unfolding $3 billion refinery fraud scandal underscores the urgent need for transparency and accountability in Nigeria’s oil sector. The EFCC’s ongoing investigation into the mismanagement of funds allocated for refinery rehabilitation has revealed significant financial discrepancies, including the discovery of N80 billion in the bank accounts of a former managing director. As the nation grapples with the implications of this scandal, it is imperative for the government and relevant agencies to take decisive action to restore public trust and ensure that those responsible are held accountable.

Table 1: Breakdown of Funds Allocated for Refinery Rehabilitation

Table 2: Key Individuals Under Investigation

Table 3: Auditor-General’s Report on Unaccounted Funds