In a seismic development shaking Nigeria’s oil and gas sector, the Economic and Financial Crimes Commission (EFCC) has arrested Umar Isa, former Chief Financial Officer (CFO) of the Nigerian National Petroleum Company Limited (NNPCL), over an alleged $7.2 billion fraud tied to the rehabilitation of the country’s three major refineries—Kaduna, Warri, and Port Harcourt.
Isa is accused of authorizing the disbursement of billions of dollars for turnaround maintenance (TAM) projects that yielded little to no results. Also arrested is Jimoh Olasunkanmi, former Managing Director of the Warri Refinery, as the EFCC expands its probe into what insiders describe as a “massive financial mismanagement scandal”.
The breakdown of funds under scrutiny includes:
- $1.56 billion for Port Harcourt Refinery
- $740 million for Kaduna Refinery
- $656 million for Warri Refinery
The arrests follow a damning report by the Senate Committee on Public Accounts, which flagged “mind-boggling discrepancies” in NNPCL’s audited financial statements from 2017 to 2023. The committee issued 11 audit queries and demanded urgent responses from the corporation’s finance team.
EFCC sources say the investigation is focused on abuse of office, diversion of public funds, and kickbacks from contractors. Several other top officials, including former and current refinery managing directors, are also under investigation.
This case adds to growing public frustration over Nigeria’s long-standing refinery woes, where billions have been spent with little to show in terms of fuel production or self-sufficiency.
