The Economic and Financial Crimes Commission (EFCC) has recovered 2.3 million litres of Automotive Gas Oil (AGO), commonly known as diesel, valued at about N4.485 billion, in connection with an alleged case of stealing and criminal conversion in Lagos.
The recovery was carried out by the EFCC’s Lagos Zonal Directorate 1 on Monday, August 17, following a petition by Prudent Energy and Services Limited against Ibafon Oil and Gas.
According to the commission, Prudent Energy had entrusted petroleum products to Ibafon Oil and Gas for storage at its depot. The company later reported a significant shortfall in the quantity of diesel it expected to find in storage.
The petitioner initially reported that 2,574,031 litres of its petroleum products remained outstanding. However, a physical measurement and reconciliation exercise reportedly found only 206,761 litres in the storage tanks.
This left a deficit of approximately 2.37 million litres, which the EFCC subsequently recovered.
The commission alleged that Mamemo Ibru, identified as the owner of Ibafon Oil and Gas, authorised the movement of petroleum products beyond the quantity belonging to the company. Investigators alleged that products belonging to the petitioner were consequently converted for personal use.
The EFCC said its investigation established that Ibafon Oil and Gas is involved in the purchase and sale of AGO as well as the storage of petroleum products belonging to customers.
Following the intervention, the commission said the recovered diesel was handed over to Prudent Energy and Services Limited.
The EFCC has not indicated that a criminal charge has been filed against Ibru at this stage. The allegations therefore remain subject to further investigation and any subsequent legal proceedings.
The recovery highlights the financial risks associated with petroleum-product storage and trading, particularly where large volumes of valuable products are held on behalf of third parties.
For Prudent Energy, the recovery represents the return of a substantial quantity of petroleum products that the company alleged had gone missing. For the EFCC, the case forms part of its wider efforts to investigate alleged economic crimes within Nigeria’s oil and gas sector.
The commission’s recovery of products worth nearly N4.5 billion also underscores the enormous sums involved in Nigeria’s petroleum industry and the potential financial impact of alleged diversion or unauthorised conversion.
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