...Probe Targets $2.79bn Rehabilitation Contracts
…Ex-MDs, Contractors Implicated
…Officials Accused Of Diverting Rehabilitation Funds
Daud Olatunji
The Economic and Financial Crimes Commission has recovered cash and assets worth N38.66bn in its sweeping investigation into the alleged diversion of funds allocated for the rehabilitation of Nigeria’s refineries, with several former and serving officials of the Nigerian National Petroleum Company Limited and contractors now facing possible prosecution.
The anti-graft agency is probing the management of about $2.79bn released between 2021 and 2023 for the rehabilitation and turnaround maintenance of the Port Harcourt, Warri and Kaduna refineries.
Investigators allege that despite the huge financial commitment, the projects failed to deliver meaningful improvements, raising fresh concerns over the management of public funds in Nigeria’s downstream oil sector.
According to sources familiar with the investigation, the EFCC has so far recovered N9.4bn, $21.2m—equivalent to about N29.26bn—and several landed properties, bringing the total value of recoveries to approximately N38.66bn.
The sources described the investigation as “one of the most extensive probes into the management of billions of dollars committed to reviving the country’s moribund refineries.”
The investigation reportedly 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 NNPCL, its subsidiary, NNPC Engineering and Technical Company Limited, former and serving managing directors of the Port Harcourt, Warri and Kaduna refineries, as well as contractors, including Daewoo Engineering Nigeria Limited and Tecnimont SPA.
The Federal Government had awarded contracts worth about $1.56bn for the Port Harcourt Refinery, $740.7m for the Kaduna Refinery and $492.3m for the Warri Refinery.
However, investigators said “they found no evidence of commensurate improvements in the operational status of the facilities,” suggesting that funds released for the projects were “criminally diverted or embezzled.”
They further stated that “substantial portions of the funds were diverted, misappropriated or fraudulently disbursed by officials entrusted with executing the projects.”
As part of the investigation, the EFCC has interrogated more than 30 senior NNPCL officials and over 50 officials of contracting firms and subcontractors.
The commission also reviewed procurement records, payment approvals and bank transactions while seeking information from the Corporate Affairs Commission, the Central Bank of Nigeria and several commercial banks.
According to the investigators, the probe uncovered “widespread violations of contractual procedures, questionable payment approvals and alleged manipulation of procurement processes.”
The investigators further alleged 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.”
Among those named in the investigation is a former Managing Director of the Port Harcourt Refinery, Ahmed Adamu Dikko, who allegedly approved direct payments to contractors in breach of contractual provisions.
The EFCC said it traced N983.9m, $227,030 and three landed properties to the former refinery boss, assets investigators said he could not satisfactorily account for.
An interim forfeiture order has reportedly been secured over the properties, while criminal charges are being prepared against him.
