The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State, where petroleum products suspected to be diesel were being processed from waste oil.
The discovery was made on Saturday, October 31, 2026, by operatives of the EFCC’s Lagos Zonal Directorate 2 following credible intelligence and surveillance on the activities of suspected illegal sludge oil refiners.
The facility was, however, deserted when the operatives stormed the premises, with the discovery coming after the Commission’s earlier crackdown on four illegal lithium processing plants in the same area.
During the operation, EFCC operatives recovered waste materials from the refining process and discovered underground tanks believed to have been used for heating and processing sludge oil.
Two of the tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Preliminary investigations indicated 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 it to the Ogere facility for processing.
Investigators believe the operators used an improvised refining process in which the sludge oil was subjected to intense heat, allowing lighter petroleum components to pass through a series of chambers and filters to produce AGO for commercial sale in the Nigerian market.
Security personnel at the facility reportedly told EFCC operatives that the Chinese operators never disclosed their identities or revealed the name of the company behind the operation.
Following the discovery, operatives of the Lagos Zonal Directorate 2 have taken over the premises as investigations intensify to identify the suspected operators, establish the ownership of the facility and determine the full extent of the alleged illegal refining activities.
The Commission is also investigating the economic implications of the operation, which raises concerns over illegal petroleum processing, environmental hazards and possible economic sabotage.