The Economic and Financial Crimes Commission (EFCC) has uncovered a suspected illegal oil refinery allegedly linked to Chinese nationals in Ogere, Ogun State, following an intelligence-led operation that exposed underground storage tanks containing suspected illegally processed diesel.
The discovery has raised fresh concerns about illegal petroleum processing activities in Nigeria, particularly the movement and handling of petroleum-related materials outside established regulatory channels.
According to the EFCC, operatives from its Lagos Zonal Directorate 2 discovered the facility during an operation targeting suspected illegal sludge oil refiners.
EFCC Uncovers Suspected Illegal Oil Refinery in Ogun
The operation reportedly took place on Saturday, October 31, 2026, after intelligence reports linked the location to suspected illegal petroleum processing activities. Upon arriving at the premises in Ogere, EFCC operatives discovered that the facility had been abandoned. However, the absence of the suspected operators did not prevent investigators from finding evidence of the activities allegedly carried out at the location. Items discovered at the facility included underground storage tanks, residual petroleum waste and two underground tanks containing substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
The EFCC said preliminary findings suggested that the facility was being used to process sludge oil into petroleum products.
How the Illegal Refinery Allegedly Operated
Investigations by the commission reportedly revealed that the suspected operators sourced black sludge, a petroleum-related waste material, from Warri in Delta State and Port Harcourt in Rivers State. The materials were allegedly transported to Ogere, where they underwent further processing.
According to the EFCC, the suspected operation involved heating the sludge oil and separating lighter petroleum components through processing chambers and filtration systems to produce diesel.
The commission is working to establish the full extent of the operation, including the quantity of petroleum products allegedly processed and the individuals involved in the business.
Chinese Operators Reportedly Abandoned the Facility
One of the major challenges facing investigators is identifying the individuals behind the suspected refinery. The EFCC disclosed that the facility was deserted before its operatives arrived.
Security personnel at the premises reportedly told investigators that the Chinese nationals believed to be associated with the operation had not disclosed their identities or the name of the company responsible for the facility.
As of the time of the announcement, the commission had not confirmed any arrests directly connected to the refinery. Investigations are expected to establish the identities of those involved, trace the ownership of the facility and determine how the suspected petroleum products were distributed.
EFCC’s Latest Discovery Follows Illegal Lithium Plant Investigation
The discovery comes shortly after another EFCC operation in Ogere involving four suspected illegal lithium processing plants.
The earlier operation was part of the commission’s efforts to investigate suspected illegal activities within Nigeria’s extractive industries. The latest petroleum-related discovery has further drawn attention to industrial activities in the area and the need for stronger monitoring of businesses operating within the country’s natural resource and petroleum sectors.
However, the two investigations involve separate activities, and no direct connection between the facilities has been established.
Why the Discovery Matters to Nigeria’s Oil Industry
Illegal petroleum processing remains a concern for Nigeria because of its potential implications for government revenue, environmental protection and the country’s regulated petroleum market. Facilities operating outside approved regulatory systems may introduce petroleum products into circulation without the necessary quality controls and oversight. There are also environmental concerns associated with poorly managed petroleum waste, including possible soil and groundwater contamination.
Beyond these concerns, identifying the people and businesses responsible for such operations is important in preventing unauthorised processing and distribution activities.
EFCC Begins Further Investigation
Following the discovery, the EFCC reportedly took control of the premises as investigations continued. The commission is expected to establish the ownership of the property, identify the alleged operators and determine the financial implications of the suspected activities. Investigators will also examine the supply chain through which the sludge oil was allegedly transported from Delta and Rivers states to Ogun State. The agency has described the suspected activity as a matter of economic concern, while further details are expected as investigations progress.
What We Know So Far
Here are the major details surrounding the discovery:
- Location: Ogere, Ogun State.
- Agency involved: Economic and Financial Crimes Commission (EFCC).
- Suspected operators: Chinese nationals.
- Materials allegedly processed: Black sludge oil.
- Reported sources of materials: Warri, Delta State, and Port Harcourt, Rivers State.
- Items discovered: Underground storage tanks, petroleum waste and suspected diesel.
- Arrests: No arrests directly linked to the refinery had been confirmed in the announcement.
- Investigation status: Ongoing.
The discovery adds to the growing scrutiny of suspected illegal activities within Nigeria’s petroleum industry, with the EFCC continuing efforts to identify those behind the operation.
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