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 facility was discovered on Saturday, October 31, 2026, during an intelligence-led operation conducted by operatives of the commission’s Lagos Zonal Directorate 2.
According to the EFCC, the operation followed weeks of intelligence gathering and surveillance on the activities of suspected illegal sludge oil refiners.
However, the operatives reportedly found the facility deserted upon arrival, following an earlier crackdown on four illegal lithium-processing plants in the same area.
A search of the premises led to the discovery of waste products from the refining process and underground tanks believed to have been used for heating and processing sludge oil.
The commission disclosed that two of the underground tanks contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Preliminary investigations revealed that the suspected operators allegedly 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.
The EFCC explained that the suspected operators 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 commercial sale in the Nigerian market.
The commission further disclosed that security personnel at the facility told investigators that the Chinese nationals allegedly behind the operation had never revealed their identities or disclosed the name of the company responsible for the refinery.
Following the discovery, operatives of the EFCC’s Lagos Zonal Directorate 2 reportedly took over the premises as investigations commenced to identify those behind the operation, establish ownership of the facility and determine the full extent of the suspected illegal activities.
The commission is also investigating the operation over allegations of economic sabotage.
As of the time of this report, the EFCC had not announced any arrests in connection with the suspected refinery.
