Former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kolo Kyari, is under investigation by the Economic and Financial Crimes Commission (EFCC) over funding for refinery rehabilitation projects.
Kyari appeared before investigators at the EFCC headquarters in Abuja yesterday. As of 8:30 p.m., he had not been released, raising speculation about whether he was being detained. His international passport was also seized upon arrival.
According to sources within the anti-graft agency, the probe focuses on how more than $2 billion earmarked for Turn-Around Maintenance (TAM) of the country’s refineries was spent. The breakdown of the allocation includes: $1.55 billion for the Port Harcourt Refinery, $740.6 million for the Kaduna Refinery, and $656.9 million for the Warri Refinery.
Investigators are also scrutinising contracts awarded during Kyari’s tenure.
In a statement issued prior to the interrogation, titled “Hard questions, honest answers”, Kyari maintained his innocence, declaring: “I have done my part; the EFCC must do theirs. When each of us does our duty without fear of favour, with honour, respect and commitment Nigeria moves forward.”
Nigeria’s four state-owned refineries include two at the Port Harcourt Refining Company (combined capacity of 210,000 barrels per day), the Warri Refining and Petrochemical Company (125,000 bpd), and the Kaduna Refining and Petrochemical Company (110,000 bpd), with a total installed capacity of 445,000 barrels per day.
Kyari had previously explained that the NNPCL was working to revive the moribund refineries under a Public-Private Partnership model similar to that of the Nigeria Liquefied Natural Gas (NLNG), as advocated by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
He disclosed that a technical review had been concluded for the three refineries, blaming decades of neglect and poor maintenance for the losses despite heavy investments.
“A lot of money has been spent on the refineries,” he admitted, “but it has been challenging to translate those funds into profitability.”
Comparing the situation to “parking an old car for some time without any greasing and oiling,” Kyari said the Port Harcourt refinery had been particularly difficult to restore. “
When you fix one thing, the other thing is still there,” he explained.
