The Economic and Financial Crimes Commission (EFCC) has uncovered an alleged illegal oil refinery linked to Chinese nationals in the Ogere area of Ogun State, following an intelligence-led operation targeting illegal sludge oil processing activities.
The discovery was made on Saturday, October 31, 2026, by operatives of the EFCC’s Lagos Zonal Directorate 2. According to the commission, the operation followed intelligence gathering and surveillance on suspected illegal sludge oil refiners operating in the area.
EFCC Discovers Underground Tanks and Suspected Diesel
In a statement issued on Tuesday by its Head of Media and Publicity, Dele Oyewale, the commission disclosed that the facility was deserted when operatives stormed the premises.
The raid followed an earlier EFCC crackdown on four illegal lithium processing plants in the area. During the inspection, operatives discovered waste products suspected to have resulted from the refining process, alongside underground tanks believed to have been used for heating and processing sludge oil.
The commission said two of the underground tanks contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Illegal Sludge Oil Transported from Warri and Port Harcourt
Preliminary investigations revealed that the suspected operators allegedly sourced sludge oil, also known as black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting it to the facility in Ogere for processing.
According to the EFCC, the sludge oil was reportedly subjected to intense heat, allowing lighter petroleum components to pass through chambers and filters in a process believed to produce diesel for commercial sale in the Nigerian market.
The discovery raises concerns about illegal petroleum processing activities and potential economic sabotage, although the full extent of the operation is yet to be established.
EFCC Investigates Chinese Operators and Facility Ownership
The EFCC further disclosed that personnel found at the facility told investigators that the Chinese operators never revealed their identities or the name of the company behind the refinery.
Consequently, operatives of the Lagos Zonal Directorate 2 have taken over the premises as investigations continue to identify the individuals allegedly responsible, establish ownership of the facility and determine the full extent of the suspected illegal oil refining activities.
The commission has not disclosed any arrests in connection with the discovery, while investigations into the alleged Chinese-linked illegal refinery remain ongoing.
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