$3 Billion Refinery Scandal: Former NNPCL Executives Face Arrest Amid $80 Billion Bank Discovery

The Economic and Financial Crimes Commission (EFCC) has initiated a major investigation into the handling of funds allocated for the rehabilitation of three Nigerian refineries, leading to the arrest of former managing directors and senior officials from the Port Harcourt, Warri, and Kaduna refineries.

According to the EFCC, the officials are being investigated for their role in the misappropriation of over $2.9 billion designated for repairs and upgrades. The breakdown includes approximately $1.56 billion for the Port Harcourt refinery, $740 million for Kaduna, and $657 million for Warri.

Investigations revealed alarming financial discrepancies, with one of the former managing directors of the refineries found to have accumulated a staggering N80 billion in personal bank accounts. Sources from the Nigerian National Petroleum Corporation Limited (NNPCL) confirmed that the EFCC has uncovered substantial amounts of money linked to these individuals, prompting a wider probe into their activities.

The NNPCL, which manages the refineries, has come under intense scrutiny as Nigerian citizens question the effectiveness of the rehabilitation efforts, particularly after the Port Harcourt and Warri refineries resumed operations in late 2024 only to face significant operational challenges. Despite initial fanfare, the refineries have struggled to meet production expectations, with the Port Harcourt refinery operating at less than 40% capacity.

In response to the findings, the NNPCL’s new leadership dismissed several top executives, including the managing directors of the three refineries. The EFCC’s ongoing investigation has expanded to include a thorough review of the funds disbursed and the parties responsible for the management of the refineries during the renovation period.

An EFCC insider stated, “We are questioning the whereabouts of the money allocated for these refurbishments. It is vital for Nigerians to know what happened to the funds and why the refineries are still underperforming despite billions being spent.”

Further complicating the situation, former NNPCL Group CEO, Mele Kyari, is also under investigation as part of the broader inquiry. Documents obtained by sources within the NNPCL reveal that several other senior executives are also implicated in the investigation for alleged corruption and abuse of office.

The NNPCL has yet to address the specifics of the investigation, with its spokesperson refusing to comment on the allegations when approached for clarification.

Meanwhile, the revamping of the refineries has been criticized by industry experts. Many claim that the rehabilitation was never truly effective, with the refineries still unable to meet the country’s growing fuel demands. Energy expert Kelvin Emmanuel described the televised commissioning of the refineries as a “charade,” saying the public was misled into believing the plants were operational when in fact they were far from it.

Concerns about the state of the refineries have also sparked a wave of protests from workers. A planned strike by Warri refinery staff, set to begin on May 5, 2025, threatens to further delay operations. The workers are protesting poor working conditions, low wages, and the failure of management to honor promises made during the refinery’s restart.

The strike comes as the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed frustration over the lack of fuel production at Warri since the refinery’s supposed reopening in January 2025. The marketers have been forced to rely on private depots for fuel, which has led to price hikes and further destabilized the industry.

In light of the ongoing scandal, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for a full investigation into the state of Nigeria’s refineries. PETROAN’s national president, Billy Gillis-Harry, has admitted that the reality of the refineries’ performance does not match the earlier reports of their operational status.

The controversy surrounding the refineries is further compounded by allegations that previous attempts to overhaul the plants have been plagued by inefficiency, with experts questioning the wisdom of investing vast sums in facilities that may be beyond repair. Energy analyst Dan Kunle warned that the ongoing rehabilitation of Nigeria’s aging refineries might be a waste of resources, especially given the logistical challenges, such as the lack of functioning pipelines for crude oil transport.

As the investigation unfolds and more details emerge, Nigerians remain hopeful that the truth will be revealed and those responsible for the mismanagement of public funds will be held accountable.