EFCC Arrests Former NNPCL Officials in Warri Over $7.2 Billion Fraud Scandal
After years of promises and billions spent, Nigeria’s biggest refineries still lie dormant. This week, the EFCC took action, hauling in Umar Ajiya Isa, NNPCL’s former CFO, and Jimoh Olasunkanmi, ex-Warri Refinery MD, for their suspected roles in a $7.2 billion fraud.
The anti-graft agency took Umar Ajiya Isa, a former Chief Financial Officer (CFO) of NNPCL, and Jimoh Olasunkanmi, a former Managing Director of the Warri Refinery, into custody as part of an ongoing probe into what lawmakers and observers call one of the most troubling financial scandals in Nigeria’s oil industry.
The arrests follow months of intense scrutiny triggered by the Senate Committee on Public Accounts. That committee, led by Senator Aliyu Wadada, uncovered staggering discrepancies in NNPCL’s audited financial statements spanning 2017 to 2023. Senators expressed deep concern that billions allocated to overhaul the Kaduna, Warri, and Port Harcourt refineries vanished with little to show for it. Even after the government poured an estimated $7.2 billion into the long-awaited Turnaround Maintenance (TAM), none of the refineries resumed full production, and Nigerians continue to face soaring fuel prices.
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According to investigators, Isa played a key role as CFO, authorizing the disbursement of huge sums for the repairs of all three refineries. Sources say Olasunkanmi, as Warri Refinery’s former boss, was also a major player in signing off on payments and supervising the process. Other senior officials under EFCC’s radar include Tunde Bakare, former MD of Warri Refinery; Ahmed Adamu Dikko and Ibrahim Monday Onoja, both former MDs of Port Harcourt Refinery. Investigators believe they all benefited from kickbacks and manipulated procurement processes.
Although the scale of this scandal is troubling, it doesn’t come as a surprise to industry observers. Public records reveal that despite receiving millions of dollars annually for TAM over the years, the refineries produced zero fuel for most of that period. That lack of output has cost Nigeria not only its energy security but also its credibility on the global stage. President Bola Tinubu has since dissolved NNPCL’s board and replaced key executives, installing Bayo Ojulari as GCEO and Ahmadu Kida as board chair. The new team faces the difficult task of salvaging a company that critics argue has been mismanaged for decades.
Premium Times recently reported that the EFCC had already begun looking into NNPC’s finances earlier this year. Investigators sent a letter dated April 28 to NNPCL’s current management, demanding salary, allowance, and disbursement records for 14 past and present top officials. That letter followed reports that the anti-graft agency was investigating over $2.9 billion approved for rehabilitation work across the three state-owned refineries: $1.56 billion for Port Harcourt, $740.6 million for Kaduna, and $656.9 million for Warri.
Despite these huge allocations, none of the refineries achieved stable operations. Warri resumed work briefly in December 2024 only to shut down a month later over safety concerns. Port Harcourt has been running at less than 42% capacity. Experts like Kelvin Emmanuel and Dan Kunle describe NNPCL’s much-publicized “recommissioning ceremonies” as misleading and part of an elaborate charade to cover up the mismanagement.
Petroleum marketers, including the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have voiced serious concern over this mess. Support staff at Warri Refinery also threaten an indefinite strike due to poor working conditions and low pay.
As the probe advances, Nigerians are waiting to see if these arrests will lead to meaningful reform or if they will merely serve as a political spectacle.
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