Gbenga Komolafe, the pioneer chief executive officer of
the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), stands accused
of orchestrating a $5 million oil block scandal with fugitive businesswoman
Aisha Achimugu, a transaction that insiders say reflects the rot undermining
Nigeria’s oil sector.
Recall that Achimugu has been on the run after being
declared wanted by the Economic and Financial Crimes Commission, EFCC , over
alleged money laundering and a high-profile investment scam.
However, the $5million oil block allegation strikes at
the heart of Nigeria’s most critical industry, where oil remains the
government’s largest revenue source. Regulatory corruption not only enriches a
few but robs the nation of billions needed for infrastructure, education, and
healthcare.
Multiple sources familiar with the matter allege that
Komolafe facilitated the deal under the guise of “strategic partnership
encouragement,” a term reportedly used to cover up questionable financial
dealings.
Achimugu, a controversial businesswoman with growing
interests in Nigeria’s oil and gas sector, allegedly secured preferential
access to a lucrative oil block shortly after the transfer of funds.
According to insiders, the transaction was meticulously
organized through intermediaries to avoid direct links between the parties.
Despite these precautions, concerns over the integrity of the process have
intensified within the oil sector and political circles.
A senior NUPRC official, speaking on condition of
anonymity, said Achimugu’s case is just one of several instances where oil
block awards have allegedly been monetized. “This was not a one-off. Komolafe
has turned oil block awards into a cash-and-carry affair,” the official said.
Amid ongoing reshuffles within Nigeria’s oil ministry,
Komolafe has reportedly boasted about his immunity from removal, attributing
his security to financial contributions
allegedly made to the Presidential Villa.
“They can’t remove me,” Komolafe was quoted as saying. “I
deliver money directly to the Villa.”
Insiders claim that Komolafe maintains strong networks
within the Presidency, allegedly fortified through regular monetary deliveries,
which serve as an informal shield against probes and disciplinary actions.
Industry players noted a pattern where access to
lucrative oil assets appeared linked to political or financial connections
rather than merit. An executive at a Nigerian oil firm that lost out on a major
bid described the process as “calculated to benefit those who pay.”
Achimugu, in her alleged dealings with Komolafe, her
ambitions reportedly aligned with a regulatory environment willing to trade
access for payment.
The implications of such arrangements extend beyond
individual transactions. Analysts warn that corruption at regulatory levels
undermines the Petroleum Industry Act (PIA) 2021, which aimed to establish
transparency and fairness in the oil sector.
“When regulators become merchants, the system collapses,”
a policy analyst specializing in extractive industries said. “Komolafe’s
actions, if proven, erode the very foundations the PIA was meant to reinforce.”
Further allegations suggest that Komolafe’s dealings
extend beyond the Achimugu case. Several politically connected companies have
reportedly benefited from favorable decisions after financial settlements. In
one instance, an oil block previously awarded to a consortium of indigenous
firms was allegedly reassigned to a company linked to a former governor
following clandestine negotiations.
Sources familiar with Komolafe’s operations describe a
pattern where trusted intermediaries manage discussions and payments, keeping
the regulator a step removed but clearly benefiting from the outcomes.
The broader consequence of such practices is a decline in
investor confidence. Reputable investors, wary of an opaque system, are
increasingly hesitant to commit resources to Nigeria’s oil sector.
Additionally, the economy loses billions of dollars annually due to delayed
projects, disputes, and litigation stemming from compromised regulatory
actions.
Komolafe’s current troubles mirror controversies from his
past. As General Manager for Operations at the Petroleum Products Pricing
Regulatory Agency (PPPRA), he was explicitly named in a Premium Times
investigation into the massive fuel subsidy scam during the tenure of former
Petroleum Minister Diezani Alison-Madueke.
Interestingly, it was his idea and template that enabled
criminals in the oil sector to smuggle empty ships into the country while
falsely claiming subsidies for products they never delivered. He consistently
took a standard cut of 30 percent from these deals.
Kolawole effectively orchestrated this scheme to exploit
the Nigerian government by colluding with these criminals in the oil sector.
However, when President Buhari came to power, Kolawole
who was former Group General Manager in charge of Crude Oil Marketing, ran
away, he was in exile for sometime before coming back to Nigeria . According to
a well-detailed report in PremiumTimes, “Lagos Division of the Federal High
Court ordered the permanent forfeiture of N7.6 billion to the Nigerian
government, money suspected to belong to Diezani Alison-Madueke, the former
Minister of Petroleum Resources.
Justice Abdulaziz Anka gave the order sequel to an
application filed by the Economic and Financial Crimes Commission, EFCC,
seeking the final and permanent forfeiture of the funds to the federal
government .
The anti-graft agency in its supporting affidavit stated
that an investigation based on intelligence reports it received discovered that
the N7.6 billion in the accounts of some banks were actually proceeds of unlawful
activities held and laundered through Gbenga Komolafe, former Group Managing
Director, Crude Oil Marketing Division of the Nigerian National Petroleum
Corporation”.
However, Komolafe narrated to a Federal High Court
sitting in Lagos , how he delivered 12 padlocked bags containing $70 million to
an Abuja-based banker on the instruction of former Minister of Petroleum
Resources, Mrs. Diezani Alison-Madueke.
Komolafe further claimed that he delivered money to the
Abuja banker, one Charles, in the front of Dume Supermarket in Abuja.
Komolafe told the court: “As I can remember, shortly
before the 2015 elections, it was the norm for heads of subsidiaries (of the
NNPC) to be invited for undisclosed briefing of activities of their departments
to the minister.
“At the end of such briefings, the then Minister of
Petroleum Resources, Alison-Madueke, gave me a GSM number in respect of one
Charles, whom I had never met, with a clear instruction that I should convey 12
padlocked bags to the said Charles.
“The source, the content and the purpose of the bags were
not disclosed to me. Thereafter, I called the said Charles, who equally
confirmed to me that he had been briefed about the message. I delivered the
bags to Charles.
“Much later, the EFCC invited me for interrogation on the
issue and I made a statement to that effect. Charles equally confirmed at the
EFCC that he received the 12 padlocked bags and the bags contained the sum of
$70 million.”
Asked by the prosecutor to describe the kind of
relationship he and others had with Diezani, the witness said: “We had a
command-and-obey relationship and also took an oath of office to obey
directives and authority.”
In the exposé, industry sources revealed that Komolafe,
or his designated representatives, demanded $8 per metric tonne from oil
marketers seeking import authorizations — essentially setting a bribery toll
gate at the agency. Described as the operational gatekeeper, Komolafe
controlled access to subsidy allocations, thereby entrenching a system where
marketers paid bribes to conduct legitimate business.
Komolafe’s role was neither passive nor peripheral. The
sources pointed to him as an active participant who either personally
communicated the bribe requirements or delegated it to trusted subordinates.
His position allowed him to manipulate the subsidy system from within, trading
public allocations for private gain.
The mechanics of the scam illustrated Komolafe’s critical
place in a corruption chain: Oil marketers would pay PPPRA officials (under
Komolafe’s oversight), proceeds would be passed through bagmen like Mr. Rufai,
and eventually, the funds would reach Diezani’s inner circle.
While it remains unclear whether Komolafe was acting solely
under orders or independently exploiting his position, the allegations firmly
established him as a central enabler of the scam. His breach of public trust at
PPPRA demonstrated a pattern of monetizing official processes — a pattern that
appears to have evolved rather than disappeared at the NUPRC.
Analysts argue that the damage inflicted by actions like
Komolafe’s extends deep into the economy’s core. When trust is eroded at the
regulatory level, the entire petroleum industry, which remains the backbone of
Nigeria’s revenue, becomes vulnerable to exploitation and inefficiency.
Investor interest shifts toward other African markets perceived to be better
governed, further diminishing Nigeria’s competitiveness.
Moreover, compromised regulatory agencies send a
discouraging signal to indigenous companies that lack political connections or
the means to “settle” their way into opportunities. The message becomes clear:
merit and competence matter less than backroom dealings and political
patronage. In the long run, this discourages innovation, deters talent, and
sustains inequality in the sector.
For a country struggling with rising poverty, high
unemployment, and currency instability, continued corruption in its most vital
sector exacerbates the crisis. The wealth generated by oil is siphoned off by a
few, rather than used to fund infrastructure, education, healthcare, and other
sectors critical to national development.
Restoring integrity to regulatory agencies like the NUPRC
is not merely an administrative requirement; it is a national imperative.
Without decisive action against officials like Komolafe, Nigeria risks
entrenching a culture where public office is seen primarily as a means to
personal enrichment. The ultimate victims are not the wealthy insiders, but the
millions of Nigerians whose futures are mortgaged by the greed of a few.
The Komolafe scandal, if left unaddressed, may serve as a
grim metaphor for Nigeria’s broader governance struggles. It will take more
than rhetoric to correct the course; it will demand political courage,
institutional reforms, and the empowerment of oversight bodies to act without
fear or favor.
Civil society organizations and sections of the media are
mounting pressure for a full investigation into NUPRC’s operations. Letters
have reportedly been sent to the Economic and Financial Crimes Commission
(EFCC) and the Independent Corrupt Practices and Other Related Offences
Commission (ICPC), urging immediate action.
Skepticism remains, however, regarding the likelihood of
a thorough probe, given Komolafe’s alleged connections within the Presidency.
Previous attempts to sanitize the oil sector have often stalled due to
political interference.
Advocacy groups argue that failing to address the
allegations against Komolafe would set a dangerous precedent. “No one should be
above the law,” said a leading voice at the Nigeria Extractive Industries
Transparency Initiative (NEITI). “If Komolafe is truly untouchable, it places
our democracy and economy at risk.”
0 Comments