Former CFO Of Nigeria’s State Oil Firm Arrested Over Alleged $7 Billion Fraud

Authored by Charles Kennedy via OilPrice.com,

Nigeria’s Economic and Financial Crimes Commission has arrested two ex-oil officials, including the former chief financial officer of Nigeria’s state energy firm NNPC, over an alleged $7.2-billion fraud, corruption, and abuse of office.

The financial crimes authorities have arrested Umar Ajiya Isa, a former CFO at NNPC, as well as Jimoh Olasunkanmi, a former managing director of the Warri refinery in Nigeria. Three other officials are being investigated, according to a statement from the commission carried by Bloomberg.

The two former executives are under investigation for alleged corruption, embezzlement, abuse of office, and kickbacks from contractors.

Isa was arrested over alleged fraud for the revamp and rehabilitation of Nigeria’s old oil refineries, Kaduna, Warri, and Port Harcourt, Nigerian outlet Premium Times reports.

Despite annual allocations of funds for the refineries’ rehabilitation, they haven’t been producing fuel in recent years.

The latest arrests and investigations come as Nigeria’s President Bola Tinubu and his administration are working to eradicate corruption in the oil industry and boost the country’s oil production.

The top African oil-producing country has consistently failed to pump to its OPEC+ quota due to oil theft, vandalism, and struggles to launch new projects.

Nigerian authorities have been clamping down on oil theft and have been supportive of an increase in oil and gas output in recent months.

Nigeria’s government last month urged the oil companies operating in the country to collaborate to increase oil output in the producer that hasn’t been able to pump to its OPEC quota for years.

Meanwhile, the private Dangote refinery in Nigeria, Africa’s largest crude processing facility, is ramping up production of fuels and is set to ship its first gasoline cargo out of the African region with a vessel heading for Asia.

The refinery, which began operations last year, has so far exported gasoline only to the West African region.