The Economic and Financial Crimes Commission (EFCC) has uncovered ₦80 billion in bank accounts linked to one of the recently dismissed managing directors of Nigeria’s state-owned refineries, as part of an ongoing investigation into the alleged misappropriation of nearly $3 billion earmarked for refinery rehabilitation.
The arrested officials, including former managing directors of the Port Harcourt Refining Company (PHRC), Warri Refining and Petrochemical Company (WRPC), and Kaduna Refining and Petrochemical Company (KRPC), are facing charges of fraud, mismanagement, and abuse of office following the failure of the long-promised refinery turnaround projects.
Sources within the EFCC confirmed that the former PHRC MD, Ibrahim Onoja, and his Warri counterpart, Efifia Chu, have been held in connection with the scandal.
The EFCC is also probing the former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, along with 13 other former top executives of the national oil company.
Massive Financial Scandal
The EFCC is investigating the misappropriation of $1.5 billion allocated to the Port Harcourt refinery, $897 million to Warri, and $741 million to Kaduna under a quick-fix rehabilitation initiative launched between 2021 and 2024.
Despite these allocations, none of the refineries are producing fuel at capacity, and two have since shut down operations.
A document from EFCC dated April 28, 2025, addressed to the NNPCL, requested salary and benefits records of all implicated officials, including Kyari.
Insiders say the volume of funds discovered may rival or exceed those seen in previous high-profile corruption scandals like the one involving ex-CBN Governor Godwin Emefiele.
Failed Rehabilitation Projects
The Warri refinery, declared operational on December 30, 2024, after a reported $897 million revamp, was shut down less than a month later due to safety issues in its Crude Distillation Unit (CDU).
The Port Harcourt refinery, which underwent a $1.5 billion overhaul, has reportedly been functioning at less than 420 per cent capacity since its commissioning in November 2024.
Despite official statements by NNPCL claiming the refineries were back online, independent investigations and visits to the sites have contradicted these claims.
No fuel trucks have been observed entering or exiting the premises, and independent marketers have confirmed that no products are being lifted from the facilities.
Public Outcry and Expert Backlash
Energy experts and industry stakeholders have expressed outrage over the revelations.
Kelvin Emmanuel, an oil sector analyst, called the commissioning ceremonies a “charade,” arguing that the refineries were never ready to begin operations.
He pointed out that critical components like catalytic reformers—needed to convert naphtha to PMS—were never installed, and pipelines essential for crude oil supply, particularly to the Kaduna refinery, remain non-functional.
Another expert, Dan Kunle, said the government ignored original refinery builders from Japan, who refused to return due to Nigeria’s insecurity.
Instead, expensive contractors were brought in with little to show for their work. Kunle described the entire project as a “scandalous waste.”
Strike Threats and Continued Shutdowns
Adding to the turmoil, support staff at the Warri refinery have announced plans for an indefinite strike beginning May 5, 2025.
Workers are protesting poor pay, lack of benefits, and casual employment status. They claim promises made by refinery management in 2022 to improve working conditions have not been fulfilled.
This labour action is expected to derail any attempts by the NNPCL to restart operations at the Warri plant’s CDU and Vacuum Distillation Unit in early May.
Market Impact and Calls for Accountability
The failure of the state-owned refineries to supply fuel has left independent petroleum marketers reliant on private depots, where fluctuating prices are hurting business.
Harry Okenini, Delta State chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said no products have been made available since the supposed recommissioning.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has also demanded a new round of inspections to assess the true condition of the refineries.
Its president, Billy Gillis-Harry, acknowledged that while the refineries appeared operational during a prior visit, they may have since collapsed.
Government Silent as Probe Deepens
The NNPCL has not responded to multiple inquiries regarding the fraud allegations.
Its spokesperson, Olufemi Soneye, has remained silent amid the growing scandal. Meanwhile, public pressure mounts for full disclosure, accountability, and recovery of misappropriated funds.
As arrests continue and investigations deepen, many Nigerians are calling for a complete overhaul of the nation’s oil infrastructure strategy and a pivot toward transparency and private-sector-led refinery development.
