$2.96 billion alleged fraud: EFCC expands NNPCL probe

The Economic and Financial Crimes Commission (EFCC) is intensifying its investigation into alleged financial mismanagement at the Nigerian National Petroleum Company Limited (NNPCL), focusing on approximately $2.96 billion allocated for refinery repairs.

Several high-ranking former officials, including former Managing Directors of the Port Harcourt, Warri, and Kaduna refineries, are under scrutiny, with multiple arrests already reported.

A source close to the investigation told Sunday Vanguard that the scope of the investigation is wide.

He said: “The investigation into alleged financial mismanagement at NNPCL is advancing rapidly and covers a wide scope. We have already uncovered compelling evidence of significant misappropriation of funds, including large sums traced to the personal accounts of former officials.”

The source further said:”A key focus of our probe is the $2.96 billion earmarked for refinery repairs. We are meticulously tracking the flow of these funds to establish how they were diverted.”

As of the time of filing this report, it remains unclear whether Mele Kyari, the immediate past Group Chief Executive Officer/Managing Director of NNPCL, has been arrested or has voluntarily presented himself for questioning.

The investigation is specifically examining funds allocated for the quick-fix maintenance of Nigeria’s refineries, which have long suffered from persistent operational challenges.

Preliminary findings indicate that $1.56 billion was allocated to the Port Harcourt Refinery, $740 million to the Kaduna Refinery, and $657 million to the Warri Refinery.

As the EFCC prepares for further arrests in the coming days, the agency is working closely with NNPCL to secure critical financial records and interview key witnesses.

This is not a superficial inquiry. It is a determined effort to root out corruption and hold those responsible fully accountable. The stakes are high, as this investigation is vital to restoring integrity and public confidence in the oil sector,” the source stressed.

Meanwhile, the Commission has formally requested detailed financial records from NNPCL, including documentation of emoluments and allowances, to support its ongoing investigation.

EFCC spokesman, Dele Oyewale, could not be reached for comment, as he is currently on official assignment abroad.
However, experts in Nigeria’s oil and gas industry were divided on the matter.

Reacting to the probe in an interview with Sunday Vanguard, yesterday, Iledare Wumi, Professor Emeritus in Petroleum Economics and Policy Executive Director, Emmanuel Egbogah Foundation, said: “I am not in a position to provide a definitive statement or to judge matters of guilt or innocence regarding the public allegations of funding misalignment relative to intended objectives.

However, the documented operational inefficiencies of the NNPCL refineries remain a significant concern. The substantial financial outlays committed since 2021 to the repair and refurbishment of these facilities highlight the broader consequences of transactionalism in Nigeria.

“This leadership approach, which seems to characterize governance in the Nigerian oil and gas sector, continues to undermine the growth objectives outlined in the Petroleum Industry Act, PIA.

“Looking ahead, I firmly believe that a shift in leadership mindset towards a shared vision, focused on prosperity for future generations is essential. Only a transformational mindset can reject the practice of retaining public funds in financial institutions for personal gain.

“The prevailing transactionalism is inadequate to effectively govern Nigeria’s oil and gas sector. Perhaps a restructured NNPCL, with a deliberate and meaningful change, will mark the beginning of a truly transformative era for the Nigerian oil and gas industry.”

On his part, an Abuja-based oil and gas expert, who pleaded anonymity, said: “The investigation is politically-motivated against the North, whose politicians have vowed to oppose President Bola Tinubu in the next presidential election

The investigation would likely compel many northerners to defect to the ruling APC and support President Tinubu’s second term bid. From all indications, it is partly targeted at weakening opposition and attracting more loyalists.”