The Economic and Financial Crimes Commission (EFCC) has recovered 2.3 million litres of Automotive Gas Oil (AGO), commonly known as diesel, valued at ₦4.485 billion, from Ibafon Oil and Gas in Lagos following allegations of theft and unlawful conversion of petroleum products.
The recovery was carried out on Monday, August 17, 2026, by the EFCC’s Lagos Zonal Directorate 1 after a petition by Prudent Energy and Services Limited over products it had entrusted to Ibafon Oil and Gas for storage. The commission disclosed the development on Tuesday, August 18.
According to the EFCC, Prudent Energy alleged that petroleum products stored at the depot had been withdrawn without authorisation, resulting in a substantial discrepancy between the company’s expected inventory and the volume physically available in the storage tanks.
The commission said the outstanding stock was initially recorded at 2,574,031 litres following periodic withdrawals. However, a subsequent physical measurement and reconciliation exercise found only 206,761 litres in the tanks, leaving a shortfall of 2,367,270 litres.
“However, during a subsequent physical measurement and reconciliation exercise, only 206,761 litres remained in the storage tanks, leaving a deficit of 2,367,270 litres,” the EFCC said.
The commission further alleged that Ibafon Oil and Gas buys and sells AGO while storing its own petroleum products alongside products belonging to customers. It alleged that the company’s owner, Mamemo Ibru, used his position to facilitate the trucking of petroleum products beyond the quantity belonging to the company and allegedly converted products belonging to Prudent Energy for personal use.
Following the EFCC’s intervention, the recovered diesel was handed over to Prudent Energy. The recovery underscores the importance of effective inventory management, physical stock reconciliation and robust custody controls in Nigeria’s downstream petroleum industry, where substantial volumes of high-value products are routinely held at third-party depots.
The development also highlights the commercial risks that can arise when physical petroleum stocks do not correspond with recorded inventories. For oil marketers and depot operators, accurate documentation, independent reconciliation and effective monitoring of product movements are critical to protecting inventories and maintaining confidence in storage arrangements.
The EFCC has continued to investigate alleged financial irregularities involving the oil and gas industry. In a separate development, the commission recently facilitated the recovery of $60 million from indigenous oil and gas company Nestoil Limited, with the funds reportedly paid to a consortium of lenders as part of efforts to resolve outstanding financial obligations.