The Economic and Financial Crimes Commission (EFCC) says it has recovered 2.3 million litres of Automotive Gas Oil (AGO), commonly known as diesel, valued at about N4.485 billion, during an investigation into an alleged case of stealing and criminal conversion involving Ibafon Oil and Gas in Lagos.
The recovery was made on Monday, August 17, 2026, by the Lagos Zonal Directorate 1 of the anti-graft agency following a petition by Prudent Energy and Services Limited.
According to the EFCC, the petitioner alleged that petroleum products entrusted to Ibafon Oil and Gas for storage were unlawfully converted, resulting in a significant shortfall in its stock.
“The recovery followed a petition submitted by Prudent Energy and Services Limited, alleging that petroleum products entrusted to Ibafon Oil and Gas for storage had been unlawfully converted, resulting in a significant shortfall in the company’s stock,” the Commission said.
The EFCC disclosed that Prudent Energy alleged that periodic withdrawals were made from the stored products until the outstanding balance stood at 2,574,031 litres.
However, it said a subsequent physical measurement and reconciliation exercise revealed that only 206,761 litres remained in the storage tanks, leaving a deficit of 2,367,270 litres.
The Commission said its investigation showed that Ibafon Oil and Gas, owned by Mamemo Ibru, is engaged in the purchase, sale and storage of Automotive Gas Oil at the same depot used for customers’ products.
“It was further revealed that Ibru allegedly used his position as the owner of Ibafon Oil and Gas to truck out petroleum products in excess of the quantity owned by the company, thereby converting the petitioner’s products for his own use,” the EFCC stated.
The anti-graft agency said that following its intervention, the suspect handed over the recovered petroleum products to Prudent Energy and Services Limited.
