EFCC Recovers Funds in Refinery Fraud Probe.
The Economic and Financial Crimes Commission (EFCC) has recovered over N5 billion and $10 million from contractors and former government officials indicted in massive fraud surrounding the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Warri, and Kaduna.
Investigations by the commission revealed that fraudulent practices such as over-invoicing, inflated contracts, and questionable payments crippled the refineries despite billions of dollars allocated for their rehabilitation.
TJ News Nigeria reports that the EFCC is also working to recover an additional N10 billion and $13 million allegedly siphoned through contractors linked to the projects.
Billions Allocated but Refineries Remain Dormant
For decades, Nigeria’s four refineries have remained largely non-functional. Despite multiple administrations budgeting huge sums for turnaround maintenance, the facilities in Port Harcourt, Kaduna, and Warri have continued to underperform.
- Port Harcourt Refinery received $1.55 billion for rehabilitation.
- Kaduna Refinery was allocated $740 million.
- Warri Refinery got $656 million for turnaround works.
Yet, these refineries have failed to deliver, forcing the country to depend heavily on imported petroleum products to meet domestic demand.
EFCC Probes Massive Contract Fraud
According to top EFCC sources, the commission uncovered widespread fraud perpetrated through inflated contracts and fake invoicing.
- Former and serving officials of the Nigerian National Petroleum Company Limited (NNPCL) and refinery management teams were repeatedly interrogated.
- Some have been found culpable, with investigations already concluded in certain cases.
- Prosecution is expected soon, with charges to be filed against those implicated.
An EFCC source disclosed:
“A total sum of $10 million and N5 billion has so far been recovered from suspects indicted in the fraud. Recoveries were made from contractors and government officials involved in inflated payments.”
The source added that both past and present management of NNPCL and the refineries may face trial.
More Recoveries Expected
Beyond the initial recoveries, the EFCC is on track to recover more stolen funds.
- Another $13 million and N10 billion diverted through contractors are expected to be retrieved.
- The commission is also investigating fresh allegations of contract inflation worth about $40 million involving NNPCL officials and contractors supplying equipment for refinery rehabilitation.
A senior EFCC official, who confirmed the ongoing recoveries but was not authorized to speak publicly, noted that the commission is determined to hold those responsible accountable.
Public Reaction and Wider Implications
The non-functional state of Nigeria’s refineries remains a major concern. Citizens continue to bear the brunt of fuel importation costs despite huge sums spent on supposed rehabilitation.
The EFCC’s efforts highlight:
- The scale of corruption in Nigeria’s oil sector.
- The urgent need for accountability in government contracts.
- The impact of fraudulent practices on energy security and the economy.
If successfully prosecuted, this case may mark one of the largest anti-corruption trials in Nigeria’s petroleum sector.
Key Takeaway
The EFCC’s recovery of over N5bn and $10m in refinery fraud is only the beginning. With billions more expected to be retrieved, the spotlight remains on the Nigerian oil industry and its history of failed rehabilitation projects. The prosecution of former and serving NNPCL officials may finally provide accountability for years of waste and corruption.
Related From TJ News
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