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Lawyers demand probe into $4bn NNPCL refinery spending

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From Godwin Tsa, Abuja

A group of lawyers, under the aegis of Guardians of Democracy and Rule of Law, has petitioned the Minister of Finance, Wale Edun, demanding a judicial commission of inquiry into the tenure of Mele Kyari, former Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL).

The lawyers, led by Barrister Benjamin Theophilus, alleged that Kyari’s leadership was marred by corruption, tax evasion, abuse of office, and misappropriation of over $4 billion spent on refinery repairs.

The petition claimed that the $4 billion spent on rehabilitating the Port Harcourt, Warri, and Kaduna refineries was inflated. It cited a private sector consortium’s proposal to repair all three refineries, with a combined capacity of 445,000 barrels per day, for $1 billion. “NNPCL, under Mele Kyari, spent $1.5 billion on Port Harcourt Refinery, $1.5 billion on Warri Refinery, and $1 billion on Kaduna Refinery,” the petition stated, adding that a new 600,000-barrel-per-day refinery could be built for $500 million.

The lawyers accused Kyari of collaborating with consultants and contractors to conceal contract costs and evade taxes. They also highlighted irregularities in crude oil allocations, noting that 80,000 barrels per day were diverted under the guise of “pipeline security” without transparency. The AKK Gas Pipeline Project, valued at $5 billion, was flagged for contract irregularities and lack of progress despite funding.

Further allegations included fuel subsidy fraud, with NNPCL increasing petroleum imports in 2020 despite global declines in fuel consumption due to COVID-19. The petition also questioned $21.565 billion in crude-backed loans since 2019, claiming they disadvantaged Nigeria by ceding trading profits to international traders.

The lawyers demanded a thorough investigation into Kyari’s tenure, recovery of misappropriated funds, and collaboration with the Federal Inland Revenue Service to probe tax evasion. They insisted on a judicial commission of inquiry, led by former Supreme Court justices, to examine NNPCL’s activities over the past five years.

The petition followed a protest by the group, calling for justice and transparency in Nigeria’s petroleum sector.



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