… Nigerians demand full probe
In one month, Mele Kyari has moved from the all-powerful figure who decided who got billion-dollar pipeline deals as group chief executive officer to a man suspended from work and being investigated over abuse of office and misappropriation of funds.
Kyari assumed leadership of the NNPC in 2019, inheriting a behemoth plagued by inefficiency, opacity, and allegations of corruption.
He pledged to transform the corporation into a transparent and commercially viable entity. To his credit, he oversaw the publication of the Nigerian National Petroleum Corporation (NNPC)’s audited financial statements for the first time in decades, a move that was widely praised as a step in the right direction.
Under his watch, Nigeria passed a Petroleum Industry Act (PIA) in 2021, a landmark legislation designed to overhaul the oil and gas industry, attract investment, and increase government revenue.
However, these achievements were overshadowed by a series of persistent problems that continued to bedevil the sector. One of the most pressing issues was the elaborate maintenance on Nigeria’s four refineries that left them poorer than they were and their managers richer than they should have been.
Refineries’ flop
In 2021, Kyari announced that the government had approved $1.5 billion for the rehabilitation of the Port Harcourt refinery, with a promise that it would be completed by 2023. Similar rehabilitation projects were announced for the Warri and Kaduna refineries, with billions of dollars allocated. However, as the years rolled by, the refineries remained largely non-functional. The completion dates were repeatedly pushed back, and Nigerians grew increasingly frustrated with the situation.
The refineries finally saw activity again when they resumed operations in November and December 2024. However, the restart proved short-lived—less than a month after reopening, the Warri refinery was forced to shut down again due to safety issues.
Meanwhile, the Port Harcourt refinery, despite its highly publicised revival, has struggled to operate even at half capacity, running below 40 percent efficiency since its much-touted rehabilitation.
The failure to revive the refineries coincide with allegations of misappropriation of funds and diversion of revenue.
Audit report indicts NNPC of diverting N514bn
A report by the Office of Auditor-General of the Federation (AGF) uncovered at least four major financial infractions amounting to N514 billion in the operations of NNPC under Kyari’s watch.
In one case, the auditor general indicted the state-owned oil firm of unauthorised deductions of N82.9 billion from federation revenue for refinery rehabilitation.
The AGF’s report said the above transactions were not supported by “evidence of authorisation and approvals before the deductions were made.”
The auditor general said the anomalies discovered in the accounts of the NNPC could be attributed to misappropriation of funds, diversion of revenue meant for the federation and loss of federation revenue.
BusinessDay’s findings showed the deductions of funds violated Section 162 (1) of the Constitution of the Federal Republic of Nigeria 1999 (as amended) which states: “The Federation shall maintain a special account to be called ‘the Federation Account’ into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police Force, the Ministry or Department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.”
The alleged infractions include irregular deductions worth N343.64 billion from domestic crude sales at source, warehousing of N83.66 billion from the federation’s miscellaneous income in a sinking fund account, and the unsubstantiated payment of N3.75 billion shortfalls from the sale of petrol.
Trillion-naira subsidy bills
Under Kyari’s watch, subsidy payments ballooned, reaching trillions of naira annually. For instance, in 2019, the nation spent about N154 billion on fuel subsidy. But by the end of 2022, it was reported that fuel subsidy gulped N4 trillion in that year alone.
Critics alleged that the subsidy regime was riddled with fraud, with inflated import figures and fictitious claims.
Crude theft
Another major challenge during Kyari’s tenure was the issue of crude oil theft. Nigeria has long grappled with the problem of illegal bunkering and pipeline vandalism, but the scale of the problem reached alarming proportions in recent years. It was estimated that Nigeria was losing hundreds of thousands of barrels of crude oil per day to theft, resulting in significant revenue losses for the country.
The oil theft menace not only affected Nigeria’s revenue but also its production capacity. Many oil companies were forced to shut down or reduce production due to the activities of vandals and thieves. This led to a decline in Nigeria’s oil output, further exacerbating the country’s economic woes.
As Kyari’s tenure drew to a close, the clamour for accountability grew louder.
Nigerian’s demand probe
Alex Nnaemeka, an economist, said anti-graft agencies like the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) must go beyond surface-level investigations.
He emphasised the need to identify accomplices still in active service and flush them out to cleanse the Nigerian National Petroleum Company Limited (NNPCL) and serve as a deterrent to others.
According to him, the situation demands that all suspects be taken into custody as a matter of national interest.
“Hopefully they cooperate, and if found guilty, they pay for their crimes,” he added.
An energy sector expert who weighed in on the situation described the unfolding events as not just troubling but as a damning indictment of systemic failure within Nigeria’s oil sector.
The expert argued that the $2.96 billion under investigation for refineries repairs could have been used to build at least two brand-new modular refineries equipped with modern technology and higher output efficiency.
He decried the recent discovery of N80 billion in a personal bank account linked to one of the suspects, calling it a clear sign of internal control failures and regulatory lapses.
He criticised the earlier government narrative that the refineries were resuming operations at 70 percent capacity, describing such claims as political theatre.
According to field reports and plant staff testimonies, the facilities have remained largely non-functional.
The absence of catalytic reforming units in both Warri and Port Harcourt refineries, which are essential for producing premium motor spirit (PMS), renders them structurally incapable of meaningful production.
The expert blamed this on poor project planning and misleading public communication.
Godwin Ekpe, an economic analyst, condemned the decision to rehabilitate decades-old refineries without first ensuring the availability of crude supply pipelines.
He pointed out that without functional feedstock infrastructure like the Escravos-to-Kaduna pipeline, the refineries were never going to be viable.
Ekpe said a more strategic option would have been the construction of smaller, modular refineries tailored to Nigeria’s current market needs.
He called for a critical review of the role of the NNPCL and Kyari, noting a pattern of public deception, financial mismanagement and media manipulation.
He urged the government to conduct a forensic audit not just of the funds spent but also of the procurement process, contractor engagement, and project milestones.
Ekweribe Odo, public affairs analyst, noted that the ongoing crisis is further compounded by threats of a strike from support staff.
He said the government’s inability to meet basic obligations to its frontline workers reveals deep-rooted issues in project governance and stakeholder management.
Even if the refineries were technically restored, he warned, their long-term sustainability would remain in question.
Odo argued that the scandal is emblematic of broader leadership, integrity, and vision failures.
Without comprehensive reforms, independent oversight and genuine commitment to transparency, he warned that Nigeria’s oil sector risks remains trapped in a cycle of waste, inefficiency, and public betrayal.
Kyari’s response
Kyari, on Saturday, said that he served Nigeria with the fear of God and is willing to account for his stewardship.
“I must emphasize that I served with the fear of God, knowing fully well, as a Muslim, that if I do not account before man, I will surely account before Allah. I am better off accounting to the institutions of man. Therefore, having served in public capacity, I am willing and happy to account for my stewardship in this world,” Kyari said in a post on his X handle.
He also warned that misleading claims about his tenure could send the wrong signals to investors and the international community.
“It is in this regard that I urge the media to be circumspect and avoid being stampeded into misleading the public with unverified stories or matters that require further validation by relevant authorities.” (BusinessDay)
