$3BN REFINERY SCANDAL: EFCC Uncovers N80bn in Sacked Managing Director’s Accounts

The Economic and Financial Crimes Commission (EFCC) has launched a sweeping investigation into a multi-billion-dollar fraud involving the rehabilitation of Nigeria’s three state-owned refineries. In a significant development, the anti-graft agency has arrested the recently sacked managing directors and senior executives of the Port Harcourt, Warri, and Kaduna refineries, over the alleged mismanagement of nearly \$3 billion in public funds.

According to Saturday PUNCH investigations revealed that the EFCC is probing the disbursement of \$1.56 billion for the Port Harcourt Refinery, \$740.6 million for Kaduna, and \$656.9 million for Warri. One of the sacked managing directors, Ibrahim Onoja (Port Harcourt Refinery), and Efifia Chu (Warri Refinery), are central to the investigation.

EFCC sources confirmed that approximately N80 billion was discovered in multiple bank accounts belonging to one of the dismissed officials, heightening suspicions of systemic corruption. “We are scrutinising all financial flows related to the refinery rehabilitation programme,” an EFCC source disclosed. “The public deserves to know why our refineries remain largely non-functional despite enormous investments.”

In a related development, a document dated April 28, 2025, obtained from the Nigerian National Petroleum Company Limited (NNPCL), reveals that the EFCC is also investigating the immediate past Group CEO of the NNPCL, Mele Kyari, along with 13 other top former executives. The anti-graft commission has formally requested certified records of their emoluments and allowances from the company.

Despite the official recommissioning of the Port Harcourt and Warri refineries in late 2024, both plants have performed far below expectations. The Port Harcourt facility is reportedly operating at less than 40% capacity, while the Warri plant was shut down within weeks of its relaunch due to safety concerns.

A report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that the Warri refinery, despite consuming \$897 million in rehabilitation costs, failed to produce Premium Motor Spirit and was forced to shut down in January 2025 due to faults in its Crude Distillation Unit Main Heater.

Meanwhile, industry experts have heavily criticised the NNPCL for misrepresenting the operational status of the refineries. Energy analyst Kelvin Emmanuel, speaking on Arise News, described the commissioning events as “stage-managed,” asserting that the refineries lack critical infrastructure, such as functioning catalytic reforming units and crude supply pipelines.

Support staff at the Warri refinery are also threatening an indefinite strike from May 5, 2025, over poor working conditions and broken promises of improved remuneration following the restart of operations. According to union representative Dafe Ighomitedo, grievances dating back to 2015 remain unresolved.

The crisis has further strained Nigeria’s downstream sector. Marketers, including the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have expressed concern over the persistent lack of product supply from the Warri facility, compelling them to rely on more expensive private depots.

Commenting on the broader implications of the scandal, energy policy expert Dan Kunle criticised the government for failing to secure original refinery contractors from Japan and opting instead for costlier alternatives with little to show for the investments. Kunle also questioned the rationale behind rehabilitating the Kaduna refinery despite the absence of a functional crude supply pipeline.

As investigations intensify, stakeholders are demanding accountability, with many calling for the new NNPCL board to be given autonomy to conduct internal reforms and salvage what is left of Nigeria’s refining capabilities.