The Economic and Financial Crimes Commission (EFCC) has arrested the recently dismissed managing directors and other top officials of three major Nigerian refineries: Port Harcourt, Warri, and Kaduna. The officials are under investigation for allegedly mismanaging over \$2.9 billion allocated for the refineries’ rehabilitation.
According to EFCC sources, the investigation is focused on \$1.56 billion for the Port Harcourt refinery, \$740 million for the Kaduna refinery, and \$657 million for the Warri refinery. These sums were approved for the refineries’ quick-fix maintenance projects, but the expected improvements have yet to materialize.
An alarming discovery revealed that a significant amount, about N80 billion, was found in the bank accounts of one of the sacked refinery MDs. This has raised questions about the true state of the refineries, which were promised to be operational after multimillion-dollar refurbishments.
The Nigerian National Petroleum Company Limited (NNPCL), which manages these refineries, has been criticized for misleading the public about their operational status. Despite claims of success, the Warri refinery was shut down just a month after its much-publicized reopening, citing safety concerns, while the Port Harcourt refinery has operated at below 40% capacity since its revamp.
Energy experts and industry operators have accused NNPCL of deceiving Nigerians with false claims of the refineries’ productivity. Refined products that were supposed to be produced in-country are still being sourced from private depots, creating unnecessary fuel price hikes.
The EFCC probe is expanding, now including former NNPCL Group CEO, Mele Kyari, as part of an investigation into alleged mismanagement. This comes amidst increasing concerns over the sustainability of the refinery rehabilitation projects and the transparency of the entire process.
Amidst these challenges, staff at the Warri refinery are threatening to go on strike, which could further delay operations. Meanwhile, market leaders are demanding a thorough investigation into the entire refurbishment process to ensure accountability and restore public trust in the sector.
This scandal highlights the ongoing struggle to fix Nigeria’s oil infrastructure and manage public funds effectively.
