The Economic and Financial Crimes Commission (EFCC) has identified a major fraud scheme inside Nigeria’s oil and gas sector, marking one of the most thorough corruption investigations in recent years. Over the last few weeks, the EFCC initiated a commission-wide examination into financial irregularities and mismanagement involving billions of naira, uncovering deep-rooted corruption that has long weakened the sector’s capacity to support Nigeria’s economic development.
The EFCC’s inquiry has mostly focused on the Nigerian National Petroleum Company Limited (NNPCL), the state-owned organization responsible for managing Nigeria’s oil assets. According to sources close to the inquiry, the commission is probing around $2.96 billion (about N1.3 trillion) budgeted for refinery repairs and upkeep, monies that were reportedly supposed to rehabilitate Nigeria’s ailing refineries in Port Harcourt, Warri, and Kaduna.
Preliminary results show that the monies were substantially misused, with considerable amounts tracked to personal accounts of former top officials and contractors. The breakdown of the cash designated for the refineries reveals $1.56 billion allotted to Port Harcourt, $740 million to Kaduna, and $657 million to Warri refineries, however, the facilities remain mainly inoperable, raising severe issues about the usage of these resources.
A source participating in the inquiry told Vanguard that the probe is “advancing rapidly and covers a wide scope,” noting that the EFCC is painstakingly following the movement of cash to uncover the full extent of the diversion and fraud.
The EFCC has already made many arrests relating to the scam. Among those arraigned is Ugochukwu Joseph Nwaemere, Executive Director of Pennhydro-Pell Oil & Gas Limited, who was charged with conspiracy, forgery, and obtaining N750 million under pretenses related to a fictitious contract for dredging and stockpiling sharp sand on the Bodo-Bonny Road Project. Nwaemere pled not guilty and is presently awaiting trial in Port Harcourt.
Additionally, the EFCC has charged two individuals in Lagos for an alleged €49 million fraud tied to the oil and gas industry, showing that the corruption network spans numerous states and includes complicated financial schemes.
The disclosures have sent shockwaves through Nigeria’s oil and gas industry, a sector that contributes to over 90% of the country’s export revenues and a large amount of government income. Experts warn that opaque financial reporting and systematic corruption have seriously impeded the sector’s efficiency and development.
Professor Emeritus Wumi Iledare, a distinguished petroleum economist, stated that the operational inefficiencies of the NNPCL refineries remain a key problem, with the huge financial outlays since 2021 failing to convert into better refinery production. He labeled the dominant leadership style as “transactional,” where public money is held in financial institutions for personal benefit rather than being spent on infrastructure and capacity development.
Iledare stressed the need for a transformational leadership attitude centered on long-term prosperity and adherence to the Petroleum Industry Act (PIA), which seeks to modernize the industry and attract investment.
The EFCC’s inquiry has not been without controversy. Some experts and insiders say that the inquiry is politically motivated, targeting northern politicians who oppose President Bola Tinubu’s government ahead of the 2027 general elections. An Abuja-based oil and gas expert, commenting anonymously, claimed that the inquiry might drive opposition leaders to switch to the governing All Progressives Congress (APC), so cementing President Tinubu’s political base.
Despite these assertions, the EFCC insists that its purpose is to hunt out corruption wherever it arises, regardless of political connections. The panel has urged for stronger public support and collaboration to guarantee that all perpetrators are held responsible.
In reaction to the rampant corruption, the EFCC has strengthened its efforts to enhance internal controls and transparency within the oil and gas industry. The commission has created a Fraud Risk Assessment and Control Department entrusted with detecting vulnerabilities and plugging budgetary gaps in Ministries, Departments, and Agencies (MDAs).
EFCC Chairman Abdulrasheed Bawa has also campaigned for the enactment of the Unexplained Wealth Bill, which would allow the commission to more effectively investigate and prosecute instances involving illegal enrichment by public authorities.
Moreover, the EFCC is coordinating closely with the NNPCL and other regulatory organizations to acquire important financial records, interview key witnesses, and ensure that the culprits face justice.
The unearthing of this vast scam comes at a time when Nigeria is attempting to diversify its economy and minimize dependency on oil earnings. The oil and gas sector’s mismanagement not only deprives the government of essential money but also discourages foreign investment and hampers attempts to develop energy infrastructure.
Corruption in the industry has led to periodic gasoline shortages, high production costs, and the inability to fulfill local demand, requiring Nigeria to depend significantly on fuel imports despite being an oil-producing country.
The EFCC’s probe signifies a significant turning point, underscoring the urgent need for structural changes, transparency, and accountability to restore public confidence and boost the sector’s contribution to national development.
As the EFCC continues its inquiry, additional arrests and convictions are inevitable. The panel has promised Nigerians that the probe is comprehensive and will not be derailed by political pressures or efforts to cover up misconduct.
The oil and gas sector, long plagued by corruption scandals, now confronts a decisive moment. Stakeholders, including government officials, industry participants, and civil society, are asked to embrace changes that promote good governance, budgetary discipline, and sustainable development.
The EFCC’s expose of huge fraud is a trumpet call for Nigeria to face the entrenched corruption that has crippled the oil and gas industry for decades. Only by concerted effort and unflinching dedication to honesty can the sector achieve its potential as a generator of economic success and social advancement.
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