By Seun Ibiyemi
The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State, following an intelligence-led operation targeting suspected illegal sludge oil processing activities.
The commission said its operatives discovered the facility on Saturday, October 31, 2026, during an operation conducted by the Lagos Zonal Directorate 2 after weeks of intelligence gathering and surveillance on illegal sludge oil refiners.
The EFCC disclosed this in a statement issued on Tuesday by its Head of Media and Publicity, Dele Oyewale.
According to the commission, the facility was deserted when operatives stormed the premises, following an earlier crackdown on four illegal lithium processing plants in the area.
However, investigators discovered waste products from the refining process, alongside underground tanks suspected to have been used for heating and processing sludge oil.
The statement said, “The Economic and Financial Crimes Commission uncovered an illegal oil refinery operated by Chinese in the Ogere area of Ogun State.
“The operation, conducted on Saturday, October 31, 2026, by operatives of the Lagos Zonal Directorate 2 of the EFCC, followed credible intelligence and surveillance by the commission on the activities of the illegal sludge oil refiners.”
The commission disclosed that two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Preliminary investigations by the EFCC reportedly showed that the operators sourced sludge oil, also known as black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting it to the Ogere facility for processing.
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The commission explained that the operators allegedly subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through chambers and filters in a process believed to produce diesel for sale in the Nigerian market.
The discovery has raised concerns over the activities of suspected illegal petroleum processors and the potential economic and environmental implications of unauthorised refining operations.
Oyewale further disclosed that personnel found at the facility told investigators that the Chinese operators had never revealed their identities or the name of the company behind the operation.
The commission said its operatives had taken over the premises as investigations continued to establish the identities of the suspected operators, ownership of the facility and the full extent of the alleged illegal activities.
It added that the investigation would also determine the circumstances surrounding the sourcing, transportation and processing of the sludge oil.
The EFCC described the operation as part of its broader efforts to combat economic and financial crimes, including activities suspected to undermine Nigeria’s petroleum industry.
The commission said investigations were ongoing to determine possible offences and identify all individuals and entities connected with the facility.
