In a sweeping anti-corruption move, the Economic and Financial Crimes Commission (EFCC) has arrested former managing directors and several top officials of Nigeria’s three major state-run refineries—Port Harcourt, Warri, and Kaduna—amid investigations into the alleged misappropriation of nearly $3 billion meant for their rehabilitation.
The arrests come in the wake of mounting public concern over the non-performance of the refineries, despite massive funding approved by the Federal Executive Council for their turnaround maintenance. The EFCC is currently investigating a total of $2.96 billion in disbursements, with $1.56 billion allocated to Port Harcourt Refining Company, $740 million to Kaduna Refining and Petrochemical Company, and $657 million to Warri Refining and Petrochemical Company.
The former MD of Port Harcourt Refining Company, Mr. Ibrahim Onoja, and Efifia Chu, formerly of Warri Refining, are among those detained. Sources revealed that a staggering N80 billion was discovered in one of the ex-MDs’ accounts, raising questions about financial oversight and accountability within the Nigerian National Petroleum Company Limited (NNPCL).
These arrests follow a recent leadership shake-up at the NNPCL, where the new management sacked the MDs of the three refineries and forced several other officials into early retirement, including Bala Wunti, the former chief of National Petroleum Investment Management Services.
Failing Refineries, Failing Promises
The refineries, long considered national assets, resumed operations with much fanfare in late 2024—Port Harcourt in November and Warri in December—after decades of inactivity. However, their performance has fallen drastically short of expectations. Less than a month into operations, the Warri refinery was shut down over safety issues, and Port Harcourt has operated at under 40% capacity since its relaunch.
Despite NNPCL’s claims of revitalization, on-the-ground reports reveal that the facilities have failed to produce any significant output. Warri refinery’s $897 million revamp, in particular, has become a focal point of criticism, with a regulatory report indicating that it never produced petrol before being shut down again in January 2025 due to a major fault in its Crude Distillation Unit Main Heater.
Sector Reactions and Mounting Scrutiny
Industry stakeholders and energy experts have expressed dismay. Kelvin Emmanuel, a prominent energy analyst, described the refineries' recommissioning as a “charade” orchestrated to mislead Nigerians. He noted that the refineries lack critical infrastructure, such as catalytic reform units and functional crude pipelines, rendering them incapable of refining products like Premium Motor Spirit (PMS).
Dan Kunle, another energy expert, called the entire rehabilitation project a waste of public funds, citing the failure to engage the original Japanese contractors due to security concerns. He pointed out that the Kaduna refinery, for instance, has no viable crude oil supply line, making its $750 million renovation a futile expenditure.
Workers Plan Strike, Marketers Left Idle
Further complicating the situation, support staff at the Warri refinery have announced an indefinite strike starting May 5, citing poor pay and casualization. The planned industrial action threatens to disrupt the NNPCL’s efforts to restart sections of the plant.
Meanwhile, petroleum marketers have voiced frustration over the non-availability of products. The Delta State Chairman of the Independent Petroleum Marketers Association of Nigeria, Harry Okenini, lamented that since the official recommissioning, marketers have not been able to lift any fuel from the Warri plant, forcing them to rely on volatile private depots.
Kyari and Other Former Officials Under Probe
The EFCC’s investigation has expanded to include former Group Chief Executive Officer of NNPCL, Mele Kyari, and at least 13 other past senior executives. A confidential letter from the anti-graft agency to the national oil company’s current leadership requested detailed records of their emoluments and allowances as part of the probe into abuse of office and financial misappropriation.
Despite repeated media inquiries, NNPCL spokesperson Olufemi Soneye has declined to comment, further fueling public suspicion.
A Sector in Crisis
The fallout from these revelations has reignited calls for transparency and reform in Nigeria’s oil and gas sector. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for a full investigation, with its president, Billy Gillis-Harry, admitting that earlier assurances about the refineries’ operational status might have been premature.
As investigations continue, the credibility of the NNPCL and the integrity of Nigeria’s refining infrastructure hang in the balance. With billions spent and little to show, public trust in the government’s ability to manage critical national assets is rapidly eroding.