The Economic and Financial Crimes Commission (EFCC) has recovered cash and assets valued at about ₦38.66 billion in an ongoing investigation into the alleged diversion of funds earmarked for the rehabilitation of Nigeria’s state-owned refineries.
The anti-graft agency is probing the utilisation of approximately $2.79 billion released between 2021 and 2023 for the rehabilitation and turnaround maintenance of the Port Harcourt, Warri and Kaduna refineries.
According to investigators, the huge financial investment failed to produce corresponding improvements in the operational status of the facilities, prompting allegations that substantial portions of the funds were diverted or misappropriated.
Sources familiar with the investigation said the recoveries include ₦9.4 billion in cash, $21.2 million – estimated at about ₦29.26 billion – and several landed properties, bringing the total value of assets recovered to approximately ₦38.66 billion.
The EFCC is investigating allegations of criminal conspiracy, criminal breach of trust, diversion of public funds, abuse of office, economic sabotage and money laundering involving former and serving officials of the Nigerian National Petroleum Company Limited (NNPCL), its subsidiary NNPC Engineering and Technical Company Limited (NETCO), former 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 approved about $1.56 billion for the rehabilitation of the Port-Harcourt Refinery, $740.7 million for the Kaduna Refinery and $492.3 million for the Warri Refinery. Investigators, however, said they found no evidence of improvements that matched the level of funding, alleging that significant amounts were fraudulently diverted through questionable transactions.
As part of the probe, the commission has questioned more than 30 senior NNPCL officials and over 50 officials of contracting firms and subcontractors. It has also reviewed procurement documents, payment approvals and banking records while obtaining information from the Corporate Affairs Commission (CAC), the Central Bank of Nigeria (CBN) and several commercial banks.
The investigation allegedly uncovered widespread procurement irregularities, questionable payment approvals and violations of contractual procedures, with several senior officials accused of authorising payments and execution certificates contrary to established financial regulations.
Among those under investigation is a former Managing Director of the Port Harcourt Refinery, Ahmed Adamu Dikko, who allegedly approved direct payments to contractors in violation of contractual provisions. The EFCC said it traced ₦983.9 million, $227,030 and three landed properties to him, all of which he allegedly failed to satisfactorily account for. An interim forfeiture order has reportedly been secured over the assets while criminal charges are being prepared.
Another official, Jimoh Yisawu, is accused of approving payments to unqualified contractors, inflated invoices and contract mark-ups worth more than $10 million and nearly ₦8 billion. Investigators also alleged that he authorised payment vouchers that resulted in losses estimated at $7.47 million and ₦1.89 billion in tax revenue. The EFCC said it traced over ₦1.4 billion and four landed properties to him, with the assets already placed under interim forfeiture.
The Commission also disclosed that an additional $2.32 million was recovered through the Federal Inland Revenue Service (FIRS), while a separate case involving an alleged $28.39 million and ₦665 million revenue fraud has been established against the management of the Port Harcourt Refining Company. The EFCC said investigations are continuing and that further recoveries and prosecutions are expected as more evidence emerges.
Efforts to obtain reactions from the NNPCL and the officials named in the investigation were unsuccessful as of the time the report was filed.
