The Economic and Financial Crimes Commission has reportedly recovered over ₦9.4 billion, $21.2 million and several landed properties in an ongoing investigation into the alleged diversion of funds released for the rehabilitation and turnaround maintenance of Nigeria’s state-owned refineries.
Using the Central Bank of Nigeria’s official market rate of ₦1,380 to $1 as of Friday, the $21.2 million recovered amounts to about ₦29.26 billion, bringing the total cash recovery so far to approximately ₦38.66 billion.
The recoveries form part of a wide-ranging investigation into the management of billions of dollars approved for the rehabilitation of Nigeria’s moribund refineries in Port Harcourt, Warri and Kaduna.
Sources familiar with the investigation said the probe centres on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office and money laundering involving officials of the Nigerian National Petroleum Company Limited, its subsidiary, NNPC Engineering and Technical Company Limited, former and serving managing directors of the refineries, and major contractors.
The contractors reportedly under scrutiny include Daewoo Engineering Nigeria Limited, Tecnimont SPA and other subcontractors engaged in the rehabilitation projects.
Between 2021 and 2023, the Federal Government, through NNPCL, awarded contracts worth about $2.79 billion for quick-fix repairs, turnaround maintenance and rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
The contracts reportedly included about $740.7 million for the Kaduna Refining and Petrochemical Company, $492.3 million for the Warri Refining and Petrochemical Company and $1.56 billion for the Port Harcourt Refining Company.
Despite the huge financial commitments, investigators reportedly found no evidence of commensurate improvement in the operational status of the refineries.
According to findings from the probe, substantial portions of the funds were allegedly diverted, misappropriated or fraudulently disbursed by officials entrusted with executing the rehabilitation projects.
Several current and former officials of NNPCL were earlier arrested in connection with the alleged multi-billion-naira fraud linked to the refinery rehabilitation contracts.
Those reportedly questioned or arrested during the investigation included a former Chief Financial Officer of NNPCL, Umar Isa; Managing Director of Warri Refinery, Tunde Bakare; former Managing Director of Port Harcourt Refinery, Ahmed Adamu Dikko; and another former Managing Director of Port Harcourt Refinery, Ibrahim Onoja.
Investigators were said to have scrutinised procurement procedures, reviewed how contract funds were utilised, assessed the level of project execution and examined alleged weaknesses exploited to facilitate the suspected fraud.
Over the past year, the EFCC reportedly interrogated more than 30 top officials of NNPCL in connection with the allegations. More than 50 officials of companies and subcontractors involved in the maintenance deals were also said to have been questioned.
As part of the investigation, the EFCC reportedly sought information from the Corporate Affairs Commission to verify the ownership and authenticity of companies involved in the contracts.
Investigators were also said to have reviewed several bank accounts linked to persons under investigation and requested information from the Central Bank of Nigeria and commercial banks.
The probe allegedly uncovered widespread violations of contractual procedures, questionable payment approvals and manipulation of procurement processes.
Sources said many of the irregularities were allegedly facilitated by officials across different levels of management, with some senior staff accused of approving questionable payments and execution certificates in violation of established financial controls.
One of the officials named in the investigation, Ahmed Dikko, a former Managing Director of the Port Harcourt Refinery, was accused of abusing due process in the execution of the Port Harcourt refinery rehabilitation contract.
Investigators alleged that Dikko approved direct payments to contractors from provisional sum funds, contrary to contractual provisions that required such contractors to be engaged and paid by Tecnimont.
The EFCC reportedly traced ₦983.9 million, $227,030 and three landed properties to him, which investigators said he could not satisfactorily explain.