The Economic and Financial Crimes Commission (EFCC) has recovered over N5 billion and $10 million from contractors and government officials indicted in the alleged fraud linked to the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.
Sources within the anti-graft agency told The Cable that the Commission is also making moves to recover an additional N10 billion and $13 million believed to have been siphoned through inflated contracts and fraudulent payments.
Findings indicate that the EFCC Chairman, Ola Olukoyede, is personally leading the investigation due to his dissatisfaction with the non-functional state of the refineries despite huge public funds committed to their rehabilitation over the years.
Nigeria’s four refineries have remained largely idle for decades, despite repeated government assurances and budget allocations running into billions of dollars. Yet, the country continues to depend heavily on imported refined petroleum products.
EFCC insiders disclosed that the investigation is probing the following allocations:
$1.56 billion for the Port Harcourt refinery,
$740 million for Kaduna refinery, and
$657 million for the Warri refinery.
Top EFCC officials familiar with the probe say the inability of these refineries to function is largely due to over-invoicing, contract inflation, and suspicious payments made to contractors and government officials over the years.
Former management staff of the refineries and officials of the Nigerian National Petroleum Company Limited (NNPCL) have reportedly been questioned multiple times in connection with the fraud.
One senior official at the Commission, who declined to be named, said investigations into some key NNPCL personnel have been concluded and charges are being prepared.
“Our findings show large-scale fraud in the rehabilitation projects of Warri, Kaduna, and Port Harcourt refineries. Funds were diverted through inflated contracts and dubious payments,” the official said. “A total of $10 million and N5 billion has so far been recovered from indicted contractors and officials. More recoveries are expected.”
The Commission is also investigating fresh allegations of $40 million contract inflation involving NNPCL staff and contractors hired to supply equipment for the refinery rehabilitation projects.
“We are still looking into a new set of contract inflation claims involving equipment procurement. The amount in question is about $40 million,” another source disclosed.
When contacted, the EFCC’s spokesperson, Dele Oyewale, was unavailable as calls and messages to his phone went unanswered. However, a senior official confirmed the recoveries, noting that more arrests and prosecutions may follow.
