The Economic and Financial Crimes Commission (EFCC) has uncovered a suspected illegal oil refinery operated by Chinese nationals in Ogere, Ogun State, where underground tanks containing substances believed to be diesel were discovered.
The facility was deserted when EFCC operatives raided the premises on Saturday, October 31, 2026, following intelligence gathering and surveillance targeting suspected illegal sludge oil processing activities.
The operation was conducted by operatives of the commission’s Lagos Zonal Directorate 2, days after the EFCC uncovered and shut down four illegal lithium processing plants in the same area.
According to the commission, investigators discovered waste materials from the refining process, alongside underground tanks believed to have been used for heating and processing sludge oil.
Two of the tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Preliminary investigations indicated that the operators sourced sludge oil, also called black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting it to the Ogun facility for processing.
The EFCC said the operators allegedly subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through a series of chambers and filters in a process believed to produce diesel for sale in the Nigerian market.
The commission added that security personnel at the premises told investigators that the Chinese operators had never disclosed their identities or the name of the company behind the facility.
Chinese operators’ identities remain unknown
Despite the discovery, the EFCC said no Chinese operator was found at the location during the raid. Investigators are now working to establish the identities of those behind the facility, determine its ownership and uncover the full extent of the suspected illegal activities.
The commission has taken over the premises as investigations continue.
The EFCC described the suspected operation as a matter requiring further investigation into possible economic sabotage, particularly given the alleged processing and commercial distribution of petroleum products outside authorised channels.
The agency has not disclosed the quantity of suspected diesel recovered, the estimated value of the operation or whether any arrests have been made in connection with the refinery.
Ogere under scrutiny after discovery of illegal processing plants
The latest discovery comes amid an intensified EFCC crackdown on suspected illegal industrial and mineral-processing activities in Ogere.
The commission had earlier uncovered four illegal lithium processing plants in the area, prompting further surveillance that reportedly contributed to the discovery of the suspected oil refinery.
The operations have drawn attention to the activities of unregulated processing facilities and the challenges facing enforcement agencies in identifying the individuals and companies behind them.
The EFCC said investigations would continue to establish the ownership of the refinery, trace those responsible and determine the extent of the suspected economic offences.
The commission has yet to announce any arrests arising from the latest raid.
