Refinery Funds: EFCC Seizes N9.4bn, $21.2m As Probe Continues

The Economic and Financial Crimes Commission (EFCC) has recovered over ₦9.4 billion, $21.2 million and several landed properties in its ongoing investigation into alleged diversion of funds meant for the rehabilitation and turnaround maintenance of Nigeria’s refineries.

According to the Central Bank of Nigeria (CBN) official exchange rate of ₦1,380 to a dollar posted on Friday, $21.2m recovered is about ₦29.26bn, bringing the total cash recovery so far to about ₦38.66bn.

The recoveries are part of a wide-ranging probe into the management of billions of dollars released for the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.

Sources familiar with the probe told Premium Times the investigation is focused on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office and money laundering.

Those being investigated include officials of the Nigerian National Petroleum Company Limited (NNPCL), its subsidiary, NNPC Engineering and Technical Company Limited, former and current managing directors of the Port Harcourt, Warri and Kaduna refineries, and key contractors, including Daewoo Engineering Nigeria Limited and Tecnimont SPA.

The Federal Government, through NNPCL, awarded refinery rehabilitation contracts worth about $2.79bn between 2021 and 2023.

The contracts include some $740.7m for the Kaduna Refining and Petrochemical Company, $492.3m for the Warri Refining and Petrochemical Company and $1.56bn for the Port Harcourt Refining Company.

Despite the massive financial commitment, investigators said they found no evidence of a commensurate improvement in the operational status of the refineries.

EFCC sources said a significant portion of the funds were allegedly diverted, misappropriated or fraudulently disbursed by officials entrusted with the execution of the projects.

Investigators are said to have examined procurement procedures, contract payments, levels of project execution and alleged weaknesses in financial controls.

More than 30 senior officials of NNPCL and more than 50 officials of contractors and subcontractors involved in the rehabilitation contracts have reportedly been interrogated.

The commission also sought information from the Corporate Affairs Commission (CAC), the Central Bank of Nigeria (CBN) and several commercial banks in the course of the investigation.

One of the officials named in the probe and accused of abusing due process in the execution of the refinery rehabilitation contract was a former managing director of the Port Harcourt Refinery, Ahmed Dikko.

Investigators claimed Dikko approved direct payments to contractors from provisional sum funds, contrary to contractual provisions that such contractors had to be engaged and paid by Tecnimont.

The EFCC stated that it had traced ₦983.9m, $227,030 and three landed properties to him, which, it said, he could not satisfactorily explain to investigators.

Prosecutors are ready to file charges and a report indicates an interim forfeiture order has been secured over the properties.

Investigators also set up what they called a prima facie case against a senior Warri refinery official, Jimoh Yisawu.

Yisawu was accused of authorising payments to third-party contractors who were not qualified, authorising inflated invoices and approving contractual mark-ups of more than $10m and almost ₦8bn.

He was also charged with approving payment vouchers without the requisite cash-back arrangements, which allegedly resulted in losses of about $7.47m and ₦1.89bn in tax revenue.

Investigators said he was linked to more than ₦1.4bn and four landed properties, which were put under interim forfeiture pending prosecution.

The recovered ₦9.4bn and $21.2m had been paid into the commission’s recovery accounts, EFCC sources said.

The Federal Inland Revenue Service reportedly recovered an additional $2.32 million.

The investigators also revealed that another case of alleged revenue fraud involving the sum of $28.39m and ₦665m had been established against the management of Port Harcourt Refining Company and efforts were on to recover the funds.

The EFCC said the investigation was still ongoing and more recoveries and prosecutions were anticipated as more evidence emerged.

Nigeria has four state refineries with a combined installed capacity of 210,000 barrels per day, two of which are in Port Harcourt.

The Kaduna refinery has a capacity of 110,000 barrels per day while the Warri refinery has a capacity of 125,000 barrels per day, taking the combined national refining capacity to 445,000 barrels per day.

Repeated funding for repairs and rehabilitation over the years has not prevented the refineries from suffering operational setbacks and operating at less than optimal capacity for decades.

The Warri Refinery, which was reopened in December 2024, was shut down in January 2025 due to safety concerns, although NNPC later announced maintenance outages at the Port Harcourt Refinery.

Following the failure to fully revive the facilities, the Federal Government and NNPCL have continued to seek strategic investors and technical partners to rehabilitate the refineries and reduce dependence on imported petroleum products.