Crime

Billions Discovered in Sacked Refinery Chiefs’ Accounts as EFCC Probes Massive Fund Mismanagement

Published by admin on May 3rd, 2025.

Billions Discovered in Sacked Refinery Chiefs’ Accounts as EFCC Probes Massive Fund Mismanagement

EFCC

The Economic and Financial Crimes Commission (EFCC) has apprehended former managing directors and top officials of Nigeria’s three state-run refineries—Port Harcourt, Warri, and Kaduna—over suspected mismanagement of nearly $3 billion meant for the rehabilitation of the facilities.

Investigations focus on how $2.96 billion allocated for refinery upgrades was handled: $1.56 billion for Port Harcourt Refining Company, $740.7 million for Kaduna Refining and Petrochemical Company, and $656.9 million for Warri Refining and Petrochemical Company. Among those arrested are former Port Harcourt Refinery MD Ibrahim Onoja and Efifia Chu, previously heading the Warri plant.

According to reliable sources at the Nigerian National Petroleum Company Limited (NNPCL), one of the dismissed executives had over N80 billion in personal accounts, further raising concerns of embezzlement.

Despite high-profile recommissioning ceremonies in late 2024, Nigeria’s refineries have failed to deliver. The Port Harcourt facility, after a $1.5 billion revamp, operates at under 40% capacity, while the Warri refinery, which resumed work in December 2024, shut down by January 2025 due to safety issues in its crude distillation unit.

Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority reveal that the Warri plant, which consumed over $897 million for repairs, hasn’t produced a drop of petrol. Staff members remain tight-lipped about operations, and marketers confirm they are not receiving fuel from the facility.

Energy experts have strongly criticized the situation. Analyst Kelvin Emmanuel labelled the recommissioning events as a “charade,” accusing officials of misleading Nigerians. He pointed out that the refineries lack the technical capacity—such as catalytic reform units—to produce premium petrol and noted that crude supply pipelines are either obsolete or inoperative.

Meanwhile, support staff at the Warri refinery have announced an indefinite strike starting May 5, protesting poor pay and job insecurity. This action threatens to further delay any planned restart of operations.

Petroleum product marketers and industry associations have expressed frustration. Harry Okenini, Delta State Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that members had not received any product allocations since January, forcing them to buy at higher prices from private depots.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for an independent investigation into the real status of Nigeria’s refineries. PETROAN president Billy Gillis-Harry admitted the association had previously believed the refineries were operational but now supports a full reassessment.

Energy policy expert Dan Kunle added that the entire rehabilitation process was flawed from the beginning. According to him, the government failed to engage the original Japanese contractors due to insecurity concerns and instead hired alternative firms at higher costs with little to show. He also stressed that the Kaduna refinery is structurally unviable due to its lack of crude supply infrastructure.

Kunle concluded by criticizing the former NNPCL leadership, especially Mele Kyari, for spending public funds on media campaigns to falsely promote the refineries as functional.