$3bn refinery scandal: EFCC uncovers N80bn in sacked MD’s accounts, arrests 3 as Kyari faces probe

The Economic and Financial Crimes Commission (EFCC) has detained former managing directors and senior officials of the Port Harcourt Refining Company, Warri Refining and Petrochemical Company, and Kaduna Refining and Petrochemical Company over alleged financial mismanagement linked to the multi-billion dollar rehabilitation of the refineries.

Investigations are centered on $2,956,872,622.36 allocated for refurbishment projects: $1,559,239,084.36 for the Port Harcourt facility, $740,669,600 for Kaduna, and $656,963,938 for Warri.

Sources within the Nigerian National Petroleum Company Limited revealed that investigators traced N80 billion to accounts belonging to one of the dismissed MDs.

Sector experts and operators have criticized NNPCL for misleading the public about the state of the refineries, citing persistent underperformance since the Port Harcourt and Warri plants restarted in November and December 2024.

READ ALSO:Major shake-up as NNPC sacks over 200 officials

NNPCL, responsible for managing the nation’s three state-owned refineries, had reactivated operations at Port Harcourt and Warri late last year following prolonged shutdowns. Yet, within weeks, the Warri refinery halted again due to safety issues, while Port Harcourt has been running below 40% capacity since its relaunch.

On Tuesday,  the dismissal of the MDs overseeing the three refineries alongside several other senior officials, including Bala Wunti, former chief of the National Petroleum Investment Management Services was reported.

A senior EFCC official, speaking anonymously, confirmed  that the arrests are part of a probe into the massive funds allocated for the plants’ quick rehabilitation.

“We are investigating the money that was released for the rehabilitation of all three refineries—money disbursed in recent times. All the principal officers within that time frame are being invited. Some have been arrested already, and we are still on the lookout for others. Nigerians are interested in seeing our refineries work. We are asking: where is the money, and what has happened to the refineries?” the official stated.

Another EFCC source disclosed that one of the former MDs had been in custody for nearly a week, with approximately N80 billion uncovered in his accounts. “Large amounts have been discovered in his accounts. About N80bn has so far been discovered in his various accounts. The way things are going, it may be bigger than Emefielegate,” the source said.

Documents obtained by our correspondent show the EFCC’s investigation extends to Mele Kyari, immediate past Group Chief Executive Officer of NNPCL, and 13 other ex-top executives. The commission’s letter requested certified records of salaries and benefits for these officials.

NNPCL spokesperson Olufemi Soneye did not respond to multiple enquiries regarding the allegations.

Industry insiders have raised fresh concerns about the refineries’ viability, pointing to longstanding structural issues and a lack of transparency in the rehabilitation process. On Tuesday, The PUNCH reported the Warri refinery’s shutdown following a $897 million revamp, while the $1.5 billion Port Harcourt plant struggles at under 40% production.

Energy analyst Kelvin Emmanuel criticized the government’s handling of the situation, describing the televised recommissioning of the facilities as “a charade.”

“For months, I had said that Warri, Port-Harcourt, and Kaduna were never going to come back into operation and that what Nigerians saw on television as the commissioning was just a charade,” Emmanuel said.

He questioned the rationale behind the multi-billion dollar rehabilitation efforts, arguing that the funds could have been used to build a new refinery instead.

Similarly, another expert, Dan Kunle, decried the handling of the projects, alleging the government bypassed the original Japanese contractors over security concerns, leading to inflated costs and poor outcomes.

“Why did we avoid Japan? Why did we go around when a sovereign authority like Nigeria could not convince Japan to come and fix the refinery? And the same Japanese company is in NLNG doing contracts,” Kunle said.

Meanwhile, the Independent Petroleum Marketers Association of Nigeria expressed frustration over the inability to lift products from the Warri refinery months after its inauguration.

IPMAN Delta chairman, Harry Okenini, lamented: “Since the inauguration of the rehabilitated Warri refinery on January 5, 2025, there has been no green light for IPMAN to lift petroleum products from the facility.”

Adding to the refinery’s challenges, support staff at the Warri plant have threatened to commence an indefinite strike on May 5, protesting poor pay and employment conditions.

Support staff leader, Dafe Ighomitedo, stated: “Workers were promised an improved salary structure upon the refinery’s restart, but that promise has not been fulfilled.”

Calls for a full probe into the refineries have grown louder, with the Petroleum Products Retail Outlet Owners Association of Nigeria signaling plans to reassess the plants’ operations.

PETROAN president, Billy Gillis-Harry, said: “We went home with the fact that we saw the refineries working and the furnaces were lighting up. But if today they are not working, then, of course, PETROAN probably needs to revisit and check what happened and what didn’t happen, which we are going to do.”

(PUNCH)