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.
The discovery was made on Saturday, October 31, 2026, by operatives of the EFCC’s Lagos Zonal Directorate 2 following intelligence reports and surveillance on the activities of suspected illegal sludge oil refiners operating in the area.
The operation came shortly after the Commission’s earlier crackdown on four illegal lithium processing plants in the same location.
Although the refinery was deserted when EFCC operatives arrived, they discovered waste materials believed to have been generated from the illegal refining activities.
The operatives also uncovered underground tanks suspected to have been used for heating and processing sludge oil. Two of the tanks inspected reportedly contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Preliminary investigations revealed that the 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 the facility in Ogere for processing.
Further findings indicated that the suspected operators used intense heat to process the sludge oil, allowing lighter petroleum components to pass through several chambers and filtration systems in what investigators believe was a process for producing diesel for commercial sale in the Nigerian market.
Security personnel stationed at the facility reportedly informed EFCC operatives that the Chinese nationals behind the operation never disclosed their identities or the name of the company responsible for running the refinery.
Following the discovery, operatives of the EFCC’s Lagos Zonal Directorate 2 have taken over the facility as investigations continue.
The Commission is working to establish the identities of the suspected operators, determine the ownership of the refinery and uncover the full extent of the alleged illegal activities.
The EFCC is also investigating the circumstances surrounding the operation, which raises concerns about illegal petroleum processing, environmental damage and possible economic sabotage.
The investigation is expected to provide further information about those behind the facility and the scale of the suspected illegal refining business.
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