EFCC Recovers N4.48bn Diesel Allegedly Diverted by Oil Firm in Lagos

The Economic and Financial Crimes Commission has recovered 2.3 million litres of Automotive Gas Oil, commonly known as diesel, valued at about N4.485 billion.

The petroleum products were allegedly diverted from Prudent Energy and Services Limited by Mamemo Ibru of Ibafon Oil and Gas in Lagos.

EFCC spokesperson, Dele Oyewale, disclosed the recovery in a statement, explaining that the investigation followed a petition submitted by Prudent Energy over an alleged shortage of petroleum products stored at Ibafon Oil and Gas’ facility.

According to the commission, Prudent Energy had entrusted the diesel to Ibafon Oil and Gas for storage but later discovered significant discrepancies in its stock.

The company reportedly alleged that repeated withdrawals had been made from its stored petroleum products without authorisation.

The petitioner initially reported that its outstanding stock stood at 2,574,031 litres.

However, during a subsequent physical inspection and reconciliation conducted as part of the EFCC investigation, only 206,761 litres were reportedly found in the relevant storage tanks.

The exercise revealed a shortfall of 2,367,270 litres, representing approximately 2.3 million litres of diesel.

The EFCC said its investigation established that Ibafon Oil and Gas is involved in the purchase and sale of diesel and operates storage facilities containing both its own petroleum products and products belonging to customers.

The commission further alleged that Ibru, who owns the company, used his position to authorise the movement of petroleum products belonging to Prudent Energy.

According to the anti-graft agency, the products were allegedly converted for Ibru’s personal use.

Following the intervention of the EFCC, the suspect reportedly surrendered the recovered petroleum products to Prudent Energy and Services Limited.

The commission described the recovery as part of its broader efforts to investigate suspected economic and financial crimes and recover assets allegedly obtained or diverted through unlawful means.

The EFCC did not state whether further charges had been filed against the suspect in connection with the alleged diversion.

The recovery highlights the agency’s continuing scrutiny of petroleum transactions and storage arrangements, particularly where companies entrust large volumes of products to third-party facilities.

The commission said investigations into the matter remain part of its mandate to protect assets and address financial misconduct.