The Nigerian National Petroleum Company Limited (NNPCL) is under unprecedented scrutiny as a $3 billion refinery rehabilitation fraud probe deepens. The Economic and Financial Crimes Commission (EFCC) is leading the investigation into alleged mismanagement of public funds earmarked for reviving Nigeria’s moribund refineries, sparking public outrage and renewed calls for systemic reform.
A $3 Billion Scandal Unfolds in Broad Daylight
The EFCC’s investigation centres on $2.96 billion in disbursements, including:
- $1.56 billion for Port Harcourt Refinery
- $740 million for Kaduna Refinery
- $656 million for Warri Refinery
Despite these allocations, the Port Harcourt refinery operates at under 40% capacity, the Warri refinery shut down in January 2025, and Kaduna remains largely idle. Critics say the money could have built two modern modular refineries with higher efficiency and output.
Mele Kyari’s Legacy Faces Hard Questions
At the heart of the scandal is former GCEO Mele Kyari, dismissed by President Bola Tinubu on April 2, 2025. Though officially removed for poor performance, the deepening probe suggests wider mismanagement.
A legal group, Guardians of Democracy and Rule of Law, has called for a judicial inquiry. They allege Kyari oversaw up to $4 billion in spending more than what’s under investigation and ignored a private consortium’s offer to fix all three refineries for just $1 billion.
Allegations also cover:
- Fraudulent allocation of crude proceeds
- Irregularities in the AKK Gas Pipeline Project
- Fuel subsidy rackets
- Crude-backed loans worth $21.56 billion since 2019
Mixed Reactions: Praise and Condemnation Collide
While many critics condemn Kyari’s leadership, others have come to his defence. The group Concerned Citizens Against Corruption praised his strategic alliance with Dangote Refinery, arguing he helped revive Port Harcourt and Warri’s plants after years of decay.
President Tinubu himself had previously credited Kyari with restarting operations at the refineries, though that narrative is now in question following the Warri shutdown just weeks after it was declared functional.
Industry and Public Demand Accountability
Across the industry, trust in NNPCL is waning. IPMAN’s National Publicity Secretary, Chinedu Ukadike, called the developments “disheartening,” adding that reforms are urgently needed to save the sector.
On X (formerly Twitter), public sentiment is fiery:
- @ruffydfire: “Nearly $1bn spent, and Warri refinery is down again. Who’s fooling who?”
- @realkelvin07: “Time for forensic audits of NNPCL upstream and trading arms. There’s more rot than we know.”
New Leadership, New Hope?
Following Kyari’s exit, Bayo Ojulari, a former Shell executive, has taken the reins at NNPCL. Backed by a new board including David Ige, Austin Avuru, and Babs Omotowa, expectations are high for a turnaround.
Energy Justice Forum (EJF) has warned Ojulari to avoid “dubious, dollar-chasing reforms” and urged him to strengthen the naira for crude policy a move hailed as patriotic and crucial for reducing fuel imports.
Refinery Collapse and Rising Pump Prices
The scandal couldn’t come at a worse time. Nigeria has struggled to meet its OPEC quota of over 2 million barrels/day. Ailing infrastructure, underinvestment, and pipeline vandalism have reduced output.
The ongoing NNPCL-Dangote Refinery price war has worsened matters. As of April 2, NNPCL hiked PMS prices to ₦925/litre in Lagos and ₦950 in Abuja, reflecting global crude volatility and crude supply cuts to Dangote Refinery.
The Path Forward: Reform or Ruin
With the EFCC probe gaining traction, stakeholders are proposing a reset:
- List NNPCL on the Nigerian Stock Exchange
- Engage independent global auditors
- Invest in modular refineries fit for Nigeria’s scale
- Establish a judicial panel of inquiry for past expenditures
The real test lies in whether Ojulari’s leadership can rebuild public trust and operational efficiency qualities long absent from the state oil giant.