The Economic and Financial Crimes Commission (EFCC) has recovered over N38.66bn in cash and assets in an ongoing investigation into the alleged diversion of funds released for the rehabilitation and turnaround maintenance of Nigeria’s state-owned refineries.
The recoveries include N9.4bn, $21.2m, which is equivalent to about N29.26bn at the Central Bank of Nigeria’s official exchange rate of N1,380 to the dollar, and several landed properties allegedly traced to persons under investigation.
The anti-graft agency is probing alleged fraud linked to about $2.79bn released between 2021 and 2023 for the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
Investigators said the probe centres on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office, money laundering and procurement fraud.
Those under scrutiny include officials of the Nigerian National Petroleum Company Limited, its subsidiary, NNPC Engineering and Technical Company Limited, former and serving managing directors of the Port Harcourt, Warri and Kaduna refineries, and major contractors, including Daewoo Engineering Nigeria Limited and Tecnimont SPA.
The Federal Government had awarded contracts valued at about $1.56bn for the Port Harcourt Refining Company, $740.7m for the Kaduna Refining and Petrochemical Company, and $492.3m for the Warri Refining and Petrochemical Company.
Despite the huge financial commitment, investigators reportedly found little evidence of corresponding improvements in refinery operations.
They alleged that substantial portions of the funds were diverted, misappropriated or fraudulently disbursed.
The EFCC had last year arrested some senior NNPCL officials in connection with the probe.
Those detained included former Chief Financial Officer, Umar Isa; Warri Refinery Managing Director, Tunde Bakare; and former Port Harcourt Refinery managing directors, Ahmed Adamu Dikko and Ibrahim Onoja.
The commission has also interrogated more than 30 senior NNPCL officials and over 50 officials of contracting firms and subcontractors involved in the refinery rehabilitation projects.
Investigators also reviewed procurement processes, project execution, payment records, bank accounts and company ownership documents, while seeking information from the Corporate Affairs Commission, the Central Bank of Nigeria and commercial banks.
Investigators accused former Port Harcourt Refinery Managing Director, Ahmed Dikko, of breaching contractual procedures by approving direct payments to contractors from provisional sum funds, contrary to provisions requiring such payments to be handled through Tecnimont.
The EFCC reportedly traced N983.9m, $227,030 and three landed properties to Dikko, which investigators said he failed to satisfactorily explain.
An interim forfeiture order has been obtained over the properties, while prosecutors are preparing charges.
Investigators also said they established a prima facie case against Jimoh Yisawu, a senior official linked to the rehabilitation of the Warri Refinery.
Yisawu was accused of approving payments to unqualified third-party contractors, inflated invoices and contractual mark-ups exceeding $10m and nearly N8bn.
He was also accused of approving payment vouchers without required cash-back arrangements, allegedly resulting in losses estimated at about $7.47m and N1.89bn in tax revenue.
The EFCC said it traced more than N1.4bn and four landed properties to Yisawu, which investigators said he could not satisfactorily explain.
The properties have also been placed under interim forfeiture pending prosecution.
