The Economic and Financial Crimes Commission (EFCC) has recovered over N5bn and $10m from contractors and government officials indicted in fraudulent activities linked to the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.
According to findings, the EFCC is also working to recover another N10bn and $13m allegedly siphoned through contractors involved in the projects.
The EFCC Chairman, Ola Olukoyede, reportedly took personal charge of the investigation due to his displeasure with the persistent non-functionality of the refineries despite the enormous sums allocated for their rehabilitation. Nigeria’s four refineries have remained largely dormant for decades, with successive administrations spending billions of dollars on turnaround maintenance, yet the facilities in Warri, Kaduna, and Port Harcourt continue to underperform, leaving the nation dependent on petroleum imports.
Investigations are focused on the $1,559,239,084.36 allocated to the Port Harcourt refinery, $740,669,600 for the Kaduna refinery, and $656,963,938 approved for the Warri refinery. Sources revealed that fraudulent practices such as over-invoicing, contract inflation, and questionable payments have played a major role in the refineries’ inability to operate efficiently. Former management teams of the three facilities have been repeatedly interrogated in connection with the findings.
One top source confirmed: “Our investigation into the turnaround maintenance of the nation’s refineries in Warri, Kaduna and Port Harcourt, have yielded major discoveries of large-scale fraud.
“Investigators discovered fraudulent dealings through over-invoicing, contract inflation and questionable payments were largely responsible for the malfunctioning of the refineries.
“Specifically, investigations flagged former management teams of the three refineries who were arrested several times and grilled to uncover fraudulent dealings that have not made the refineries deliver optimal benefits to Nigerians.
“A total sum of $10m and N5bn have so far been recovered from suspects indicted in the fraud. The recoveries were made from some contractors and government officials involved in over-invoicing and inflated payments.”
The source further revealed that both serving and retired members of the management of the Nigerian National Petroleum Company Limited and the refineries may soon face charges. “Investigations are already concluded on some officials of the NNPCL involved in the rehabilitation contracts and the commission is ready to file charges against them. Both former management and present management of the NNPCL and refineries may be charged.”
Another insider disclosed that the EFCC is on track to recover more funds. “While we have recovered some money, another $13m and N10bn discovered to be siphoned through contractors engaged in the maintenance are due to be recovered.”
Additionally, the agency is probing fresh allegations of contract inflation worth about $40m, allegedly involving NNPCL officials and contractors engaged to procure equipment for the rehabilitation projects. “Investigation is still ongoing on allegations of contract inflation in the region of $40million involving some officials of NNPCL and some contractors engaged to procure equipment for rehabilitation works,” the source said.
Efforts to reach the EFCC’s Head of Media and Publicity, Dele Oyewale, were unsuccessful as calls and text messages were not responded to at press time.
