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

Saturday, May 3, 2025 | 4:17 AM WAT Last Updated 2025-05-03T11:17:11Z

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

The Economic and Financial Crimes Commission (EFCC) 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 over alleged mismanagement of nearly $3bn meant for the rehabilitation of Nigeria’s refineries.

According to findings by Dip Connects News, the EFCC is currently investigating the disbursement of $2,956,872,622.36—comprising $1.56bn for Port Harcourt refinery, $740.6m for Kaduna refinery, and $656.9m for Warri refinery.

One of the most startling discoveries so far is the alleged N80bn found in the bank accounts of one of the sacked managing directors, reportedly Mr Ibrahim Onoja of the Port Harcourt Refining Company. Efifia Chu, former MD of Warri Refining and Petrochemical Company, is also under probe. Sources within the Nigerian National Petroleum Company Limited (NNPCL) confirmed these developments.

The arrests come amid growing criticism of NNPCL’s handling of refinery operations, especially after the much-celebrated resumption of the Port Harcourt and Warri refineries in November and December 2024, respectively. Barely a month into operations, the Warri refinery was shut down due to safety issues, while the Port Harcourt plant has struggled at under 40% capacity.

Further compounding the situation, Dip Connects News obtained a document dated April 28, 2025, from NNPCL, titled “Investigation Activities: Request for Information,” confirming that the EFCC’s probe extends to the former Group Chief Executive Officer, Mele Kyari, and 13 other senior executives. The document demands certified records of emoluments and allowances of the listed individuals, whether serving or retired.

The EFCC’s spokesperson, Dele Oyewale, was unreachable as of press time. However, a senior source within the agency confirmed the arrests and ongoing investigations into the disbursement of funds meant for quick-fix maintenance.

Sources within the NNPCL say the scale of the fraud could rival the infamous “Emefielegate” scandal. One source noted that “all three MDs are being investigated,” describing the situation as “indeed sad.”

Poor Output, Broken Promises

Despite claims that the Warri refinery resumed at 60% capacity and the Port Harcourt refinery at 70%, reports reveal that the facilities are largely idle. Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicate that the Warri refinery has been shut since January 25, 2025, due to a fault in its Crude Distillation Unit (CDU) Main Heater. Meanwhile, the Port Harcourt refinery has not exceeded 42.23% capacity within six months of its recommissioning.

An earlier investigation by Dip Connects News in January found that activity at Warri was skeletal. However, NNPCL insisted production was ongoing.

The Warri refinery, with a capacity of 125,000 barrels per day, was commissioned in 1978 and serves southern and southwestern Nigeria. President Bola Tinubu had recently praised the NNPCL for its refurbishment efforts, though operations have not matched public expectations.

The $1.5bn Port Harcourt refinery rehabilitation was funded via an international loan facility and has suffered multiple delays. A December 2024 recommissioning ceremony claimed the refinery was operating at 70% capacity, with a daily production target of 1.4 million litres of Straight-Run Gasoline and other products. However, independent assessments suggest the claims were exaggerated.

Sector Experts and Workers React

Energy expert Kelvin Emmanuel has described the commissioning ceremonies as “a charade,” accusing the government of staging the events to mislead Nigerians. He argued that the $2.96bn allocated for refurbishment could have built new modular refineries and criticized the design and capabilities of existing ones.

He stated that both PHRC and WRPC lack the necessary units to convert Naphtha to Premium Motor Spirit (PMS), and that critical pipelines feeding crude oil to the refineries are non-functional.

Adding to the crisis, support staff at the Warri refinery have announced plans for an indefinite strike starting May 5, 2025, over casualisation, poor pay, and unfulfilled promises of improved wages. This threatens the NNPCL’s plans to restart some key units at the facility in May.

Marketers and Associations Demand Accountability

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns about the non-availability of petroleum products from the Warri refinery. Delta State IPMAN Chairman, Harry Okenini, noted that marketers have had to rely on private depots with fluctuating prices, putting pressure on businesses.

He urged the Federal Government to grant full operational autonomy to the newly appointed NNPCL board.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) also called for a thorough probe of refinery operations. National President Billy Gillis-Harry defended earlier claims that the refineries were operational but acknowledged the need for a follow-up evaluation.

Energy analyst Dan Kunle criticized the decision to sideline the Japanese company that originally built the refinery due to insecurity concerns. He said the Kaduna refinery is especially problematic as it lacks pipelines to receive crude oil, rendering any rehabilitation effort futile.

Kunle accused former GCEO Mele Kyari of funding media propaganda to promote false narratives about the refineries' operational status.