Latest news with #MeleKyari
Business Insider
03-05-2025
- Business
- Business Insider
Nigerian Anti-graft agency probes $2.9bn refinery scandal, traces N80bn to sacked MD
The Economic and Financial Crimes Commission (EFCC), Nigeria's corruption watchdog, has initiated a full-scale investigation into a $2.9 billion refinery rehabilitation fund scandal, uncovering over ₦80 billion in accounts linked with the recently sacked Managing Director of a major refinery. EFCC initiates full-scale investigation into a $2.9 billion refinery fund scandal in Nigeria Uncovered over ₦80 billion in accounts linked to sacked Managing Director of a major refinery Probe includes inflated contracts, embezzlement, and money laundering related to refinery operations Nigeria's anti-graft agency, the EFCC has launched a major probe into a $2.9 billion refinery fund scandal, uncovering over ₦80 billion tied to the sacked MD of a key refinery. The raid is part of a wider corruption investigation into fraudulent activities, including inflated contracts, embezzlement, and money laundering, related to operations in the government owned refineries. Several NNPCL executives, including former GCEO Mele Kyari, are under intense scrutiny. An EFCC official said ' We are investigating the money that was released for the rehabilitation of all three refineries—money disbursed in recent times. All the principal officers within that time frame are being invited. "Some have been arrested already, and we are still on the lookout for others. Nigerians are interested in seeing our refineries work. We are asking: where is the money, and what has happened to the refineries? ' Govt owned refineries remain broken The arrest was necessitated by the corporation's failed attempts to revive the Port Harcourt and Warri refineries, despite significant financial investments, following reports of severe underperformance. The Warri refinery subsequently shut down again within a month, citing safety concerns. The former Managing Director of Port Harcourt Refining Company is Mr. Ibrahim Onoja, while Efifia Chu headed the Warri Refining and Petrochemical Company Notably, over ₦11.3 trillion had been spent since 2010 without any refinery operating at full capacity. During Mele Kyari's tenure, $2.9 billion was allocated for refinery rehabilitation, aiming to reduce reliance on imported petroleum products and boost local refining capacity. The investment, comprising $1.5 billion for the Port Harcourt refinery, $740 million for the Kaduna refinery, and $656 million for the Warri refinery, was allegedly mismanaged. The agency has requested NNPCL to provide certified copies of the emoluments and allowances for the listed officials, including retirees. Additionally, they've asked for the confirmation of 13 former senior officials' names, including: Abubakar Yar'Adua, Isiaka Abdulrazak, Umar Ajiya, Dikko Ahmed, Ademoye Jelili, Mustapha Sugungun, Kayode Adetokunbo, Efiok Akpan, Babatunde Bakare, Jimoh Olasunkanmi, Bello Kankaya, and Desmond Inyama.
Business Insider
29-04-2025
- Business
- Business Insider
Concerns mount as Nigerian refinery shuts down after $897.6m in maintenance funding
The recent shutdown of the Warri refinery barely a month after being declared operational, has sparked growing concerns over the transparency and efficiency of Nigeria's refinery management. According to a document from the Nigerian Midstream and Downstream Petroleum Regulatory Authority obtained by The Punch, the refinery, which absorbed $897.6 million in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down just a month after former NNPC Group CEO Mele Kyari declared it operational. Industry operators and experts have expressed disappointment over the situation. Further findings revealed that the Port Harcourt Refining Company, which resumed operations in November 2024, is operating at less than 40% of its capacity. Despite substantial investments and rehabilitation initiatives, these refineries continue to face operational challenges that hinder their full functionality. The refinery, commissioned in 1978, was designed to supply markets in Nigeria's southern and southwestern regions. Its petrochemical plant has a capacity of 13,000 metric tons of polypropylene and 18,000 metric tons of carbon black annually. Despite receiving $897.6 million in maintenance funding, the refinery ceased operations on January 25, 2025, due to safety issues in its Crude Distillation Unit Main Heater—raising fresh doubts about oversight and performance under the Nigerian National Petroleum Company Limited (NNPCL). Revamp efforts hit wall Nigeria's government-owned refineries have long been plagued by neglect, mismanagement, and corruption—persistent symptoms of the country's troubled oil sector. Despite renewed efforts to rehabilitate the Port Harcourt, Warri, and Kaduna refineries in a bid to reduce dependence on imported petroleum products and boost domestic refining capacity, progress remains slow and uneven. Hopes were briefly rekindled when private sector investments, particularly the Dangote Refinery, emerged as potential game changers for Africa's top oil producer, which has relied on imported fuel for decades. Despite initial optimism, recent developments cast doubt on the government's seriousness in revamping its moribund refineries. According to the NMDPRA document obtained by The Punch, the Warri Refining and Petrochemical Company was shut down on January 25, 2025, due to safety concerns with its Crude Distillation Unit (CDU) Main Heater—barely a month after being declared operational. Meanwhile, the Port Harcourt Refinery, which resumed operations in November 2024, is operating at just 37.87 percent of its installed capacity, far below the 70 percent claimed by NNPC spokesperson Femi Soneye. The refinery, with a nameplate capacity of 60,000 barrels per day, produced an average of 82.55 million litres of refined products monthly between November 2024 and April 2025—about 135.45 million litres short of its optimal output of 218 million litres. These figures sharply contradict NNPC's projections at the plant's recommissioning, where the firm claimed the facility would deliver daily outputs of 1.4 million litres of Straight-Run Gasoline for blending into Premium Motor Spirit (PMS), 900,000 litres of kerosene, 1.5 million litres of diesel, and significant quantities of LPG and jet fuel.
