EFCC recovers N4.5 billion diesel from Lagos depot over alleged theft

The Economic and Financial Crimes Commission (EFCC) has recovered 2.3 million litres of diesel, valued at N4.485 billion, from the depot of Ibafon Oil and Gas in Lagos over allegations of theft and criminal conversion. This occurred on Monday, August 17, 2026, with the recovery taking place under the jurisdiction of the Lagos Zonal Directorate 1.

The EFCC announced the development on August 18, following a complaint from Prudent Energy and Services Limited, which alleged that the petroleum products entrusted to Ibafon Oil and Gas for storage had been unlawfully converted, leading to a significant discrepancy between the expected and actual stock levels. Initially, Prudent Energy reported a shortfall of 2,367,270 litres from the expected balance of 2,574,031 litres.

Post-investigation, the EFCC found that Ibafon Oil and Gas had both stored its own petroleum products and those of customers at the same depot. The probe further revealed that Ibru, the owner, used his position to transfer products beyond the company's allocation and allegedly misappropriated products belonging to Prudent Energy.

The seized petroleum products were returned to Prudent Energy. This case underscores the significance of robust storage infrastructure and inventory management in Nigeria's downstream petroleum sector, where substantial volumes of products are handled through depots before reaching distribution points and end-users. Established from Ibafon Chemicals Limited in 1979, Ibafon Oil and Gas transitioned from chemical importing to bulk-liquid handling and petroleum storage, commencing operations in 2005.

The EFCC's intervention continues as it addresses financial disputes and alleged irregularities within Nigeria's oil and gas industry, with a recent report in June 2026 indicating Nestoil's total debt exceeding $1.084 billion and N469.43 billion, despite ongoing restructuring efforts.