In a shocking revelation that has sent ripples through Nigeria’s oil and gas sector, the Economic and Financial Crimes Commission (EFCC) has uncovered an alleged multi-billion dollar fraud involving the rehabilitation of Nigeria’s three state-owned refineries. At the center of the scandal is the discovery of N80 billion in the personal accounts of a recently sacked Managing Director of one of the Nigerian National Petroleum Company Limited’s (NNPCL) subsidiaries.
The EFCC agency has confirmed the arrest of former Managing Directors of the Port Harcourt Refining Company (PHRC), Warri Refining and Petrochemical Company (WRPC), and Kaduna Refining and Petrochemical Company (KRPC). These arrests are part of a sweeping probe into the mismanagement of over $2.96 billion disbursed for the long-delayed rehabilitation of the moribund refineries.
According to EFCC sources, the commission is investigating a staggering $1.56 billion allocated to PHRC, $740 million for KRPC, and $656 million for WRPC. One of the sacked officials, believed to have supervised these contracts, is alleged to have illicitly amassed N80 billion in his personal bank accounts, intensifying scrutiny on how the funds were utilized.
A confidential EFCC document dated April 28, 2025, reveals that the probe also extends to the immediate past Group CEO of NNPCL, Mele Kyari, along with 13 other high-ranking former executives. The commission has requested official records of their salaries, allowances, and emoluments as part of its ongoing investigation.
Industry insiders and watchdogs have expressed dismay over the opacity surrounding the refinery rehabilitation. Despite high-profile ceremonies heralding the “resumption” of operations at Port Harcourt and Warri refineries in late 2024, both facilities have either shut down or operated below capacity within weeks. The Warri plant, which reportedly resumed operations in December 2024, was shut down in January 2025 due to safety issues in its Crude Distillation Unit, despite a reported $897 million in rehabilitation costs.
The PHRC has struggled at under 40% capacity since its much-publicized relaunch in November 2024. An April report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority confirmed that the refinery failed to meet expectations, contradicting NNPCL’s earlier claims of improved output.
Energy analyst Kelvin Emmanuel criticized the government’s refinery revamp program, calling it a “charade” staged to mislead Nigerians. He argued that the funds allocated could have built entirely new refineries with modern refining capabilities. Emmanuel noted that critical infrastructure like the Escravos-Warri pipeline remains non-functional, raising questions about crude supply logistics.
The ongoing fraud probe has also triggered fears of labor unrest. Support staff at the Warri refinery are set to embark on an indefinite strike starting May 5, 2025, over unresolved issues of casualization, poor remuneration, and unfulfilled promises made during the 2022 quick-fix program.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have voiced concerns about the refineries’ lack of productivity. IPMAN stated that since the WRPC relaunch, its members have not lifted a single litre of petrol from the facility. Instead, they’ve been forced to buy fuel at inflated prices from private depots.
In a further blow to NNPCL’s credibility, sources revealed that even basic operational checks during the supposed relaunch showed no real activity. Employees cited “calibration” work in progress, while security blocked access to non-staff visitors. No fuel trucks were observed entering or leaving the refinery, contradicting claims of active production.
PETROAN President Billy Gillis-Harry, who earlier endorsed the refineries’ performance based on a technical inspection, now concedes that the group may need to revisit the facilities. “If what has been done is not good enough, we welcome the EFCC’s investigation and hope the system improves,” he said.
As the EFCC’s probe deepens, public outcry continues to mount, with Nigerians demanding accountability, transparency, and reform in the management of the nation’s oil assets. Analysts believe this unfolding scandal could rival the scale of the infamous “Emefielegate,” signaling a potential reckoning in Nigeria’s petroleum industry.