The anti-graft agency is preparing to prosecute some former and serving officials of the NNPC and contractors over alleged abuse of office, money laundering and contract fraud.
The Economic and Financial Crimes Commission (EFCC) has recovered over N9.4 billion, $21.2 million, and several landed properties in an ongoing investigation into the alleged diversion of funds released for the rehabilitation and turnaround maintenance of Nigeria’s refineries, PREMIUM TIMES can report.
Based on the Central Bank of Nigeria’s official market rate of N1,380/$1 posted on Friday, the $21.2 million recovered is approximately N29.26 billion, bringing the total amount recovered so far to N38.66 billion.
The recoveries are part of what investigators described as one of the most extensive probes into the management of billions of dollars committed to reviving the country’s moribund refineries.
Sources at the EFCC, briefed on the investigations, told this newspaper that the investigation centres on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office and money laundering involving officials of the Nigerian National Petroleum Company Limited (NNPCL), its subsidiary, the NNPC Engineering and Technical Company Limited (NETCO), former and serving managing directors of the Port Harcourt, Warri and Kaduna refineries, as well as major contractors including Daewoo Engineering Nigeria Limited and Tecnimont SPA.
The federal government, through the NNPCL, awarded contracts worth approximately $2.79 billion between 2021 and 2023 for quick-fix repairs, turnaround maintenance and rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
The contracts included approximately $740.7 million for Kaduna Refining and Petrochemical Company, $492.3 million for Warri Refining and Petrochemical Company, and $1.56 billion for the Port Harcourt Refining Company, which was awarded to Daewoo Engineering Nigeria Limited, Tecnimont SPA and other subcontractors.
Despite the huge financial commitment, investigators said they found no evidence of commensurate improvements in the operational status of the facilities, which suggests that over time, funds released have been criminally diverted or embezzled.
Investigators say their findings show that substantial portions of the funds were diverted, misappropriated or fraudulently disbursed by officials entrusted with executing the projects.
Last year, PREMIUM TIMES reported that the EFCC arrested several top officials of the NNPC in connection with the alleged multi-billion naira fraud associated with the rehabilitation of the refineries. At the time, both former and current officials of the company were apprehended, including a former Chief Financial Officer, Umar Isa; Tunde Bakare, managing director, Warri Refinery; Ahmed Adamu Dikko, former managing director, Port Harcourt Refinery; and Ibrahim Onoja, former managing director, Port Harcourt Refinery.
Investigators scrutinised procurement procedures, analysed how contract funds were utilised, assessed the level of project execution and sought to identify systemic weaknesses allegedly exploited to facilitate fraud. Over the past year, the EFCC has interrogated over 30 top officials of the NNPC in connection with the alleged crime. Similarly, more than 50 officials of the companies and subcontractors involved in the maintenance deals have been quizzed by investigators so far.
In the course of the investigation, the EFCC sought clarifications from the Corporate Affairs Commission (CAC). Several letters were reportedly written to ascertain the authenticity and original owners of companies involved, several bank accounts of individuals involved were thoroughly reviewed, and information was sought from the Central Bank and several commercial banks on the matter.
According to the findings, the investigators uncovered widespread violations of contractual procedures, questionable payment approvals and alleged manipulation of procurement processes.
EFCC sources told this newspaper that many of the irregularities were facilitated by officials across different levels of management, with several senior staff allegedly approving questionable payments and execution certificates in violation of established financial controls.
One of the officials named in the investigation, Ahmed Dikko, a former managing director of the Port Harcourt Refinery, was accused of abusing due process in the execution of the Port Harcourt refinery rehabilitation contract.
Investigators alleged that Mr Dikko approved the direct payment of contractors from provisional sum funds, contrary to contractual provisions requiring such contractors to be engaged and paid by Tecnimont.
The EFCC said it traced N983.9 million, $227,030 and three landed properties to the official, assets it said he could not satisfactorily account for.
An interim forfeiture order has already been secured over the properties, while prosecutors are preparing criminal charges against him.
The investigation also established what it described as a prima facie case against Jimoh Yisawu over the rehabilitation of the Warri refinery, sources said.
Investigators accuse Mr Yisawu, a senior official at the refinery, of approving payments to unqualified third-party contractors, authorising inflated invoices and approving contractual mark-ups amounting to more than $10 million and nearly N8 billion.
He was also accused of approving payment vouchers without the required cash-back arrangements, allegedly resulting in losses of about $7.47 million and N1.89 billion in tax revenue.
Investigators said they traced more than N1.4 billion and four landed properties to Mr Yisawu, assets that investigators said he failed to satisfactorily explain.
The properties have also been placed under interim forfeiture pending prosecution.
The EFCC has, so far, recovered N9.4 billion and $21.2 million, which have been paid into its recovery accounts, sources told this newspaper.
An additional $2.32 million was reportedly recovered through the Federal Inland Revenue Service (FIRS).
Investigators also disclosed that a separate case involving alleged revenue fraud amounting to $28.39 million and N665 million has been established against the management of the Port Harcourt Refining Company, with efforts underway to recover the funds.
The investigation raises fresh questions over the effectiveness of the multi-billion-dollar refinery rehabilitation programmes initiated by the federal government.
Investigators stressed that the probe remains ongoing and that additional recoveries and prosecutions are expected as more evidence emerges.
Efforts to obtain the reaction of the NNPCL and the officials named in the investigation were unsuccessful as of the time of this report. Their responses will be reflected when received.
Nigeria has four state-run refineries, including two in Port Harcourt, which together form the Port Harcourt Refining Company, with a combined installed capacity of 210,000 barrels per day (bpd).
The Kaduna Refining and Petrochemical Company Limited has an installed capacity of 110,000 bpd, while the Warri Refining and Petrochemical Company Limited has an installed capacity of 125,000 bpd.
