EFCC Arrests Former NNPCL CFO Over Alleged $7.2 Billion Refinery Fraud

In a major development tied to Nigeria’s oil sector and anti-corruption efforts, the Economic and Financial Crimes Commission (EFCC) has taken into custody a former Chief Financial Officer (CFO) of the Nigerian National Petroleum Company Limited (NNPCL), Umar Isa, for his alleged involvement in a staggering $7.2 billion fraud.

This investigation relates to the rehabilitation of the Kaduna, Warri, and Port Harcourt refineries, a project that has long attracted public scrutiny due to poor results despite massive government investment.

Alongside Isa, the EFCC also arrested Jimoh Olasunkanmi, a former Managing Director of the Warri Refinery, for his suspected role in the controversial project.

Arrests Connected to Suspicious Refinery Funding

Reports indicate that Umar Isa, during his time as CFO, played a central role in authorizing the disbursement of funds meant for the turnaround maintenance of the country’s three main refineries. The Kaduna, Warri, and Port Harcourt facilities were at the heart of Nigeria’s refinery revitalization project, which is now under fire due to alleged corruption, mismanagement, and financial irregularities.

According to findings by LMSINT MEDIA, other high-ranking officials tied to this investigation include:

• Tunde Bakare, Managing Director of the Warri Refinery
• Ahmed Dikko, former MD of Port Harcourt Refinery
• Ibrahim Onoja, another former MD of Port Harcourt Refinery

All of them are reportedly under EFCC scrutiny for alleged corruption, abuse of office, diversion of public funds, and collecting kickbacks from contractors who handled the maintenance contracts.

EFCC Yet to Issue Official Statement

As of the time this report was filed, Dele Oyewale, spokesperson for the EFCC, had not released an official statement regarding the arrests or status of the investigation.

However, this is not the first time questions have been raised about financial inconsistencies in Nigeria’s oil sector.

Senate Audit Raises Red Flags on NNPCL Financial Statements

Just last week, the Senate Committee on Public Accounts, led by Aliyu Wadada, sounded the alarm over significant inconsistencies found in the audited financial reports of NNPCL, covering the years 2017 to 2023.

The committee labeled the discrepancies “mind-boggling and deeply concerning” and pointed out that the audit revealed several troubling details about the handling of funds during that period.

In response, the Senate Committee issued a list of 11 audit queries to the NNPCL finance department and demanded detailed explanations within a week.