The Economic and Financial Crimes Commission, EFCC, has uncovered a suspected illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State.
The discovery followed an intelligence-driven operation conducted on Saturday, October 31, 2026, by operatives of the EFCC Lagos Zonal Directorate 2.
According to the Commission, the operation was based on credible intelligence and surveillance targeting suspected illegal sludge oil refining activities in the area.
When operatives stormed the facility, they found the premises deserted. However, investigators discovered waste materials believed to have been generated from the refining process.
The EFCC also uncovered underground tanks suspected to have been used for heating and processing sludge oil.
Two of the tanks inspected contained substances suspected to be Automotive Gas Oil, commonly known as diesel.
Preliminary investigations indicate that the operators sourced sludge oil, also referred to as black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting the materials to Ogere for processing.
Investigators believe the operators subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through a series of chambers and filters in a process designed to produce Automotive Gas Oil for sale in the Nigerian market.
Further findings revealed that security personnel at the facility told EFCC operatives that the Chinese operators never disclosed their identities or the name of the company responsible for running the refinery.
The discovery comes after the Commission’s earlier crackdown on four illegal lithium processing plants in the same area.
Following the latest operation, EFCC operatives have taken over the premises as investigations continue to identify the operators, establish ownership of the facility and determine the full extent of the suspected illegal activities.
The Commission says the investigation is ongoing, with particular attention on the suspected economic sabotage and illegal petroleum processing activities.
The development raises fresh concerns about illegal petroleum operations, environmental risks and the need for stronger regulatory oversight of Nigeria’s oil and gas sector.
