$3bn refinery fraud: N80bn found in sacked MD’s bank accounts
By Daylight
May 3, 2025
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The Economic and Financial Crimes Commission has arrested the recently sacked managing directors and some top officials of the Port Harcourt Refining Company, Warri Refining and Petrochemical Company, and Kaduna Refining and Petrochemical Company.
The officials were arrested over alleged mismanagement of funds earmarked for the rehabilitation of the facilities. The total amount under investigation is $2,956,872,622.36.
Findings by Saturday PUNCH showed that the EFCC is probing the sum of $1,559,239,084.36 allocated to the Port Harcourt refinery, $740,669,600 released for the Kaduna refinery, and $656,963,938 approved for the Warri refinery.
The ex-Managing Director of Port Harcourt Refining Company Ltd is Mr Ibrahim Onoja, while Efifia Chu served as the ex-Managing Director of the Warri Refining and Petrochemical Company Ltd.
This came as impeccable top management sources at the Nigerian National Petroleum Company Limited revealed that N80bn was found in the account of one of the sacked MDs.
Also, operators and experts in the sector lambasted NNPCL for deceiving Nigerians regarding the operations of the refineries, particularly the Port Harcourt and Warri plants, following the poor output from the facilities since their resumption of operations in November and December 2024.
Dashed hope
NNPCL manages the three refineries for Nigerians. The plants had remained dormant for decades, but the Port Harcourt and Warri refineries resumed operations in November and December 2024, respectively.
However, less than one month after the Warri refinery resumed operations, the plant was again shut down due to safety concerns.
The Port Harcourt refinery, on the other hand, has been operating below 40 per cent of its capacity since its widely celebrated revamp.
On Tuesday, The PUNCH exclusively reported that the new NNPCL management fired the managing directors of the three refineries under its purview.
Some other senior officials of the national oil firm were also asked to leave; among them was Bala Wunti, a former chief of the National Petroleum Investment Management Services, a subsidiary of the NNPCL.
The new management also asked many officials with one year to their various retirement dates to leave.
Arrest of suspects
On Friday, a senior EFCC source, who spoke with Saturday PUNCH on the condition of anonymity due to the lack of authorisation to speak on the matter, revealed that the arrests of the three ex-MDs and top officials were part of an ongoing investigation into the billions of dollars released for the quick-fix maintenance of the three state-owned refineries.
“We are investigating the money that was released for the rehabilitation of all three refineries—money disbursed in recent times. All the principal officers within that time frame are being invited.
“Some have been arrested already, and we are still on the lookout for others. Nigerians are interested in seeing our refineries work. We are asking: where is the money, and what has happened to the refineries?” the official said.
The source added that the investigation was far-reaching, covering all key actors involved in the management of the refineries during the period in question.
The EFCC spokesman, Dele Oyewale, could not be reached as of the time of filing this report.
Earlier, sources at the NNPCL told Saturday PUNCH that one of the sacked MDs had been with the EFCC for about a week.
“Large amounts have been discovered in his accounts. About N80bn has so far been discovered in his various accounts. The way things are going, it may be bigger than Emefielegate,” the official, who spoke in confidence due to the nature of the probe, stated.
Another official stated, “All the three of them are being investigated by the EFCC. It is indeed sad!”
Kyari under probe
A document obtained by our correspondent on Friday from NNPCL, dated April 28, 2025, and titled, ‘Investigation Activities: Request for Information’, indicated that the probe by EFCC included the immediate past Group Chief Executive Officer of the national oil firm, Mele Kyari.
The EFCC document was addressed to the Group Managing Director (Group Chief Executive Officer) of the national oil company and contained the names of 13 other former senior executives of the NNPCL.
“The commission is investigating a case of abuse of office and misappropriation of funds in which the underlisted officials of your organisation featured,” the document stated.
It outlined the officials to include Abubakar Yar’Adua, Mele Kyari, Isiaka Abdulrazak, Umar Ajiya, Dikko Ahmed, Ibrahim Onoja, Ademoye Jelili, and Mustapha Sugungun.
Others are Kayode Adetokunbo, Efiok Akpan, Babatunde Bakare, Jimoh Olasunkanmi, Bello Kankaya and Desmond Inyama.
“In view of the above, you are kindly requested to furnish certified true copies of their emoluments and allowances, including that of those who have retired and no longer work with your organisation,” the anti-graft commission told the NNPCL boss.
The spokesperson for the NNPCL, Olufemi Soneye, has remained mute over allegations against top officials of the company, as he ignored repeated enquiries on the matter.
Lies uncovered
Although this is not the first time the company has feigned the effectiveness of its operations, citizens have noted that the lack of transparency not only deepens public distrust but also fuels speculation about the company’s true intentions and the actual state of Nigeria’s oil infrastructure.
On Tuesday, The PUNCH exclusively reported that the NNPCL came under fire as the $897m Warri refinery revamp flopped.
The report also stated that the $1.5bn newly repaired Port Harcourt refinery had been struggling at under 37.87 per cent production capacity.
This was after the revelation that the Warri Refining and Petrochemical Company had remained shut since January 25, 2025, due to safety issues in its Crude Distillation Unit Main Heater.
An April 2025 document on the Midstream and Downstream sector obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority revealed that the refinery, which consumed $897.6m in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down barely a month after former NNPCL boss, Kyari, declared it operational.
An investigation by Saturday PUNCH on January 5, 2025, revealed that skeletal activities were ongoing at the WRPC, compared with the heyday of the refinery when the company was working at full capacity. But NNPCL debunked this, stressing that production was ongoing.
The PUNCH reports that the 125,000 barrels per day capacity Warri refinery, which had been moribund for decades due to technical issues, was brought back to life by the national oil company on December 30, 2024.
The Warri refinery
Situated in Ekpan, Uwvie, and Ubeji areas of Warri, the petrochemical plant has an annual production capacity of 13,000 metric tonnes of polypropylene and 18,000 metric tonnes of carbon black.
Commissioned in 1978, the WRPC is operated by the NNPC and was established to cater to the markets in Nigeria’s southern and southwestern regions.
The PUNCH reported that President Bola Tinubu commended the NNPCL for completing the refurbishment of the 125,000-bpd capacity Warri refinery, which reportedly kicked off operations at 60 per cent capacity.
It is focused on producing and storing critical products, including Straight Run Kerosene, Automotive Gas Oil (diesel), and heavy and light Naphtha.
A month earlier, the national oil company, at a much-publicised event, announced the revitalisation of the 60,000 barrels per day old Port Harcourt refinery.
The $1.5bn rehabilitation project, funded through a loan facility backed by international financial institutions, was projected to restore the state-owned facility to full operational status after years of dormancy and seven postponements, with the latest failure occurring in September 2024, from its earlier target of December 2023.
But a few days after the fanfare, a visit by Saturday PUNCH to the refinery revealed that there was no activity on site, as some workers met by our correspondent claimed that the refinery was undergoing calibration. This was also denied by the company.
The NNPCL spokesperson, Soneye, had said that the refinery recommissioned on November 26, 2024, was operating at 70 per cent of its installed capacity, with plans to increase output to 90 per cent in subsequent months.
At its recommissioning, the state-owned firm stated that the Port Harcourt refinery would produce daily outputs of 1.4 million litres of Straight-Run Gasoline blended into Premium Motor Spirit, 900,000 litres of Kerosene, 1.5 million litres of Automotive Gas Oil, 2.1 million litres of Low Pour Fuel Oil, and additional volumes of Liquefied Petroleum Gas.
The new NMDPRA document highlighting the refinery’s true state, however, linked the shutdown of WRPC to critical faults in the refinery’s Crude Distillation Unit Main Heater.
“The Warri Refining and Petrochemical Company was shut down on 25th Jan. 2025 due to safety concerns over the CDU Main Heater,” the document stated.
The PHRC facility, on its part, did not exceed 42.23 per cent of its operational capacity within the six months.
At another visit on Friday to the Warri refinery by Saturday PUNCH, some members of staff who were seen around the premises declined to comment on the situation at the refinery.
Non-staff members were denied access to the complex, as security operatives at the main gate insisted they were working on instructions.
Marketers contacted also lamented they had been unable to lift petroleum products at the refinery.
Our correspondent did not see fuel-laden trucks either coming in or going out of the refinery during the visit.
FG deceiving Nigerians – Expert
An energy expert, Kelvin Emmanuel, said the Warri, Port Harcourt, and Kaduna refineries were never truly set to resume operations.
Speaking on Arise News, Emmanuel described the televised commissioning as a “charade,” accusing the government of staging the event to mislead the public.
He said, “For months, I had said that Warri, Port-Harcourt, and Kaduna were never going to come back into operation and that what Nigerians saw on television as the commissioning was just a charade.
“On August 12, 2021, the Federal Executive Council approved memos for monies worth $2.96bn to be raised for the turnaround maintenance of the three refineries.
“This money can build a brand new 60,000-barrel refinery. The last of these refineries was completed in 1989 by Shell. So these refineries were built as very sizable modular refineries to power the operations of operators off-stream.
“So they were not built to refine. The PHRC and WRPC don’t have a catalytic reform unit that can convert Naphtha to PMS.
“The 46km pipeline that was designed to supply feedstock from Escravos to Warri is out of service. So, how are you carrying crude oil to the refinery?
“One of the proofs that the NNPCL was deceiving Nigerians that it was refining is that most of our products are supplied from Lagos.
“We have a situation where $2.96bn was approved by the FEC, but there is nothing to show for it. So, if you claim that your refineries are operational, it is supposed to deliver up to 7 million litres. If you check the balance sheet of the company, the refineries are a loss-making business.”
Staff threaten strike
Meanwhile, plans to restart a section of Nigeria’s 125,000b/d Warri refinery are at risk due to an indefinite strike planned by plant support staff scheduled to begin on Monday, May 5, 2025. The strike is in protest against casualisation, low pay, and lack of benefits.
A new report by Argus Media said the state-owned company had planned to restart the crude and vacuum distillation units (CDU and VDU) and a gas plant in the first week of May. But the support staff have timed their strike to disrupt these plans.
Support staff representative, Dafe Ighomitedo, said the striking workers had been protesting their employment terms since 2015.
“A previous strike called in April 2022 would have delayed the start of the quick-fix programme, but it was called off following appeals from community leaders and a promise from refinery management to address the workers’ demands if they supported the programme,” Ighomitedo said.
“Workers were promised an improved salary structure upon the refinery’s restart, but that promise has not been fulfilled,” he added.
IPMAN worried, PETROAN demands probe
The Delta State Chairman of the Independent Petroleum Marketers Association of Nigeria, Harry Okenini, speaking with Saturday PUNCH, expressed worry over the non-production of petrol at the Warri refinery, months after the announced completion of its rehabilitation.
The IPMAN boss said, “Since the inauguration of the rehabilitated Warri refinery on January 5, 2025, there has been no green light for IPMAN to lift petroleum products from the facility.
“For the past months, there has been no product for marketers here, and we cannot just stay idle, so we decided to source products from the private depots.
“These private depot owners, today they will increase the price; tomorrow they will increase it again. So, the whole thing has caused problems for the business.”
He appealed to the Federal Government to give the newly-appointed board of the NNPCL a free hand to work. Punch
