EFCC recovers N5bn, $10m in refinery fraud probe as another N10bn, $13m traced to suspects

The Economic and Financial Crimes Commission (EFCC) has recovered more than N5 billion and $10 million from contractors and officials of Nigerian National Petroleum Company Limited (NNPCL) implicated in large-scale fraud surrounding the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.

According to a report by PUNCH on Sunday, investigators are also pursuing an additional N10 billion and $13 million believed to have been siphoned through inflated rehabilitation contracts, according to top EFCC sources.

It was learnt that EFCC Chairman Ola Olukoyede personally oversees the investigation due to his dissatisfaction with the continued dormancy of the refineries despite massive government spending.

For decades, Nigeria’s four state-owned refineries have operated far below capacity despite repeated allocations of billions of dollars for their overhaul. Records show that $1.56bn was budgeted for Port Harcourt, $740.6m for Kaduna, and $656.9m for Warri, yet the facilities remain largely moribund, forcing the nation to depend heavily on fuel imports.

Sources revealed that the commission uncovered patterns of over-invoicing, contract inflation, and questionable payments, which crippled refinery performance. Former management teams of the affected refineries were repeatedly interrogated, while some serving and retired NNPCL officials are now facing imminent prosecution.

One source said, “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.”

The official added, “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.”

According to another source, “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.”

The EFCC is also probing fresh allegations of contract inflation worth about $40 million, allegedly involving NNPCL staff and contractors hired to procure rehabilitation equipment.

“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,” a source disclosed.

The EFCC’s Head of Media and Publicity, Dele Oyewale, could not be reached for comment as calls and messages went unanswered. However, a senior commission official confirmed the recovery on condition of anonymity.