Over N5bn, $10m recovered in ongoing refinery fraud probe
By Eshiorameh Sebastian, Abuja
The immediate past Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, was grilled for a second consecutive day on Thursday by the Economic and Financial Crimes Commission (EFCC) as part of an ongoing investigation into the controversial turnaround maintenance of the country’s refineries.
As a condition of his administrative bail, the anti-graft agency has seized his passport and other travel documents to prevent him from leaving the country.
This development comes amid revelations that the commission has so far recovered more than N5 billion and $10 million** from contractors and government officials linked to alleged fraudulent deals in the refinery rehabilitation projects. Investigators are also working to recover an additional N10 billion and $13 million believed to have been siphoned through questionable contracts.
A senior EFCC official, who confirmed the details, stated that Kyari was released on Wednesday night after hours of questioning but was required to return the following morning. “He was released late yesterday, went home, and came back today. He is still with us as I speak. He is on administrative bail and will continue to report until we are done with the interrogation,” the source said, adding, “His passport and other travel documents are with us.”
The probe focuses on allegations of corruption, contract inflation, and financial mismanagement related to the rehabilitation of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna. These facilities have remained largely non-functional for years despite billions of dollars spent on maintenance and upgrades. Kyari, who served as Group Managing Director of NNPC from 2019 and later became the first CEO of NNPCL after its incorporation in 2021, has been under scrutiny for his role in overseeing these projects.
The EFCC’s investigation has uncovered evidence of widespread fraud, including over-invoicing, inflated contracts, and questionable payments. A statement from the commission noted, “Our investigation into the turnaround maintenance of the nation’s refineries in Warri, Kaduna, and Port Harcourt has yielded major discoveries of large-scale fraud. Investigators discovered fraudulent dealings through over-invoicing, contract inflation and questionable payments, which were largely responsible for the malfunctioning of the refineries.”
In August, the EFCC secured a court order to freeze four bank accounts linked to Kyari at Jaiz Bank. Preliminary investigations revealed that the accounts were used to warehouse over N661 million, suspected to be proceeds of unlawful activities. The commission is also interrogating former management teams of the three refineries, and charges are being prepared against some NNPCL officials connected to the alleged corrupt contracts.
EFCC Chairman Ola Olukoyede has taken personal charge of the investigation, expressing strong dissatisfaction with the continued failure of the refineries despite massive financial allocations. Public frustration has grown over the years due to the poor performance of these facilities, which has forced Nigeria to rely heavily on imported petroleum products despite its vast crude oil reserves.
The sums under investigation are substantial. The EFCC is currently looking into a total of $1.5 billion allocated to the Port Harcourt refinery, $740.6 million released for the Kaduna refinery, and $656.9 million approved for the Warri refinery. The commission emphasised that the recovery of funds is ongoing and forms a critical part of its efforts to tackle corruption in the energy sector.
When asked whether significant breakthroughs had been made in the case, the EFCC official declined to give details, stating only that “investigation is still ongoing.” The probe reflects a broader effort by the anti-graft agency to address systemic corruption and financial misconduct in Nigeria’s oil and gas industry, which has long been plagued by inefficiency and allegations of graft.
As the investigation continues, Kyari is expected to keep reporting to the EFCC as required under the terms of his administrative bail. The case has drawn significant public attention, highlighting ongoing challenges in governance and accountability within Nigeria’s critical national oil infrastructure.
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