The Economic and Financial Crimes Commission (EFCC) has uncovered one of the most extensive fraud schemes in Nigeria’s oil and gas sector, allegedly involving the systematic diversion of funds earmarked for the rehabilitation of the country’s four moribund refineries.
According to an exclusive report by Premium Times, investigators have so far recovered over N9.4 billion, $21.2 million (approximately N29.26 billion), and several landed properties in connection with the probe, bringing the total recovered so far to an astonishing N38.66 billion.
The investigation, which has been ongoing for over a year, centres on contracts worth approximately $2.79 billion awarded between 2021 and 2023 for the turnaround maintenance and rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.
Despite the massive financial commitment, sources at the EFCC briefed on the investigation told Premium Times that there is no evidence of commensurate improvements in the operational status of the facilities, suggesting that substantial portions of the funds were criminally diverted or embezzled by officials entrusted with executing the projects.
The anti-graft agency is preparing to prosecute a cast of high-profile individuals, including former and serving officials of the Nigerian National Petroleum Company Limited (NNPCL), its subsidiary NETCO, as well as managing directors of the Port Harcourt, Warri, and Kaduna refineries.
Major contractors, including Daewoo Engineering Nigeria Limited and Tecnimont SPA, are also under investigation for their alleged roles in the fraud.
Among those implicated is Ahmed Dikko, a former Managing Director of the Port Harcourt Refinery. Investigators allege that Mr Dikko abused due process by approving direct payments to contractors from provisional sum funds, violating contractual provisions that required such contractors to be engaged and paid by Tecnimont.
The EFCC said it traced N983.9 million, $227,030, and three landed properties to Mr Dikko—assets he could not satisfactorily account for. An interim forfeiture order has already been secured over the properties, and criminal charges are being prepared against him.
Similarly, Jimoh Yisawu, a senior official at the Warri Refinery, has been accused of approving payments to unqualified third-party contractors, authorising inflated invoices, and approving contractual mark-ups amounting to over $10 million and nearly N8 billion.
Investigators traced more than N1.4 billion and four landed properties to Mr Yisawu, assets he also failed to explain. The properties have been placed under interim forfeiture.
Sources revealed that the EFCC scrutinised procurement procedures, analysed contract fund utilisation, and assessed the level of project execution. Over 30 top officials of the NNPC have been interrogated, while more than 50 officials of the contracting companies and subcontractors have also been quizzed.
According to findings, investigators uncovered widespread violations of contractual procedures, questionable payment approvals, and alleged manipulation of procurement processes. Several senior staff allegedly approved questionable payments and execution certificates in violation of established financial controls.
The EFCC also reportedly sought clarifications from the Corporate Affairs Commission (CAC) to ascertain the authenticity and original owners of companies involved, while bank accounts were thoroughly reviewed, and information was sought from the Central Bank of Nigeria and several commercial banks.
Billions Recovered, More Expected
So far, the EFCC has recovered N9.4 billion and $21.2 million, which have been paid into its recovery accounts. 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.
A Legacy of Failure
Despite the billions poured into reviving Nigeria’s state-run refineries—which have a combined installed capacity of 445,000 barrels per day—the facilities have continued to grapple with operational constraints and have not operated at optimal capacity for decades.
The Warri Refinery, which reopened briefly in December 2024, shut down in January 2025 due to safety issues. In May 2025, the NNPC announced an outage at the Port Harcourt Refinery for scheduled maintenance.
In October 2025, NNPC initiated a comprehensive technical and commercial review of its three refineries. More recently, in May, NNPC signed a Memorandum of Understanding with two Chinese companies—Sanjiang Chemical Company Limited and Xinganchen (Fuzhou) Industrial Park Operation and Management Co., Ltd.—to support the completion, operation, and possible expansion of the Port Harcourt and Warri refineries.
However, questions remain over the effectiveness of these new partnerships, as details of the agreement remain sketchy.
Prosecution Looms
EFCC sources stressed that the investigation remains ongoing and that additional recoveries and prosecutions are expected as more evidence emerges.
Discussion about this post