EXCLUSIVE: EFCC charges former Port Harcourt, Warri refinery MDs with money laundering

The Economic and Financial Crimes Commission (EFCC) has announced the recovery of over N38.66 billion in cash and property during an ongoing investigation into the alleged misuse of funds allocated for the rehabilitation of Nigeria's state-owned refineries. This probe, one of the largest in the nation's history, focuses on the management of approximately $2.79 billion in contracts awarded between 2021 and 2023 for the repair and modernization of the Port Harcourt, Warri, and Kaduna refineries. These contracts totaled around $1.56 billion for the Port Harcourt Refining Company, $740.7 million for the Kaduna Refining and Petrochemical Company, and $492.3 million for the Warri Refining and Petrochemical Company. The EFCC has identified several high-ranking officials within the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries, along with major contractors, as suspects in the alleged mismanagement of these funds.

The investigation centers on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office, and money laundering. Officials under scrutiny include former and current managing directors of the refineries, as well as executives from NNPCL and its subsidiary, the NNPC Engineering and Technical Company Limited (NETCO). Contractors such as Daewoo Engineering Nigeria Limited and Tecnimont SPA are also implicated in the probe. The EFCC claims that despite the massive investment in the rehabilitation projects, there is minimal evidence of corresponding improvements in the operational efficiency of the refineries, suggesting that a significant portion of the allocated funds may have been misused or embezzled.

Among those targeted in the investigation are former and current officials of the NNPCL, including the former Chief Financial Officer, Umar Isa, and former managing directors of the Port Harcourt Refinery, Ahmed Dikko and Ibrahim Onoja, as well as the managing director of the Warri Refinery, Tunde Bakare. The EFCC has conducted extensive interviews with over 30 senior NNPCL officials and more than 50 representatives from contracting firms and subcontractors involved in the refinery rehabilitation projects. Investigators have examined procurement procedures, analyzed payment records, scrutinized bank accounts, and sought information from regulatory bodies such as the Corporate Affairs Commission (CAC), the Central Bank of Nigeria, and commercial banks. Their findings indicate widespread violations of procurement protocols, questionable approval of payments, and alleged manipulation of contract processes, all facilitated by officials at various levels of management.

The EFCC has taken legal action against some of the individuals involved, charging them with money laundering. Former Managing Director of the Port Harcourt Refining Company, Ahmed Adamu Dikko, faces a 12-count charge, while his counterpart at the Warri Refining and Petrochemical Company, Jimoh Olasunkanmi Yisawu, has been charged with eight counts. The charges allege that both men abused their positions by laundering proceeds from illegal activities, using accounts to hide illicit funds, and conducting large cash transactions in violation of the Money Laundering (Prevention and Prohibition) Act, 2022. Specific instances cited include Dikko's unauthorized cash payment of N218.375 million for a property in Abuja and the retention of N100 million received from a contractor, Ebenco Global Link Limited, in a Fidelity Bank account, despite knowledge that the funds were proceeds of unlawful activity.

The EFCC has also traced assets valued at N983.9 million, $227,030, and three landed properties to Dikko, which he allegedly failed to account for adequately. The investigation has revealed that certain officials, including Dikko, bypassed required procedures by approving direct payments to contractors from provisional sum funds instead of going through designated channels such as Tecnimont. These actions have raised serious concerns about the integrity of the management overseeing the refinery rehabilitation projects.

The EFCC's probe has intensified scrutiny over the government's repeated attempts to revitalize Nigeria's struggling refineries, which have consistently operated far below their installed capacities despite substantial public investments. With a combined installed capacity of 445,000 barrels per day, the four state-run refineries—two in Port Harcourt, one in Kaduna, and one in Warri—have failed to meet their operational goals. The EFCC's findings suggest that the lack of improvement in refinery performance may be due to the misallocation of funds rather than technical or logistical challenges. As the investigation continues, the EFCC remains focused on recovering additional assets and pursuing legal action against those found guilty of financial misconduct related to the refinery rehabilitation program.