The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State.
EFCC operatives discovered the facility during an intelligence-led operation on Saturday, October 31, 2026. The operation followed reports of suspected illegal sludge oil refining in the area.
The commission disclosed the discovery in a statement on Tuesday. Its Head of Media and Publicity, Dele Oyewale, provided details of the operation.
The operatives found the facility deserted when they arrived. However, they discovered waste products from the refining process.
They also found underground tanks used for heating and processing sludge oil. Two tanks contained substances suspected to be Automotive Gas Oil, commonly called diesel.
Preliminary investigations revealed the alleged source of the raw materials. The operators reportedly obtained black sludge from Warri, Delta State, and Port Harcourt, Rivers State.
They then transported the materials to Ogere for processing.
According to the EFCC, the operators used intense heat to process the sludge oil. The process allowed lighter petroleum components to pass through chambers and filters. The facility allegedly used this method to produce diesel for sale.
The commission said workers at the facility could not identify the Chinese operators. They also could not provide the name of the company behind the operation.
The workers reportedly said the operators never disclosed their identities. Consequently, investigators are working to establish who owns and controls the facility.
The EFCC has taken over the premises as investigations continue. However, the commission has not announced any arrests linked to the discovery.
The discovery raises concerns about illegal petroleum processing in Nigeria. Such activities can undermine legitimate businesses and reduce government revenue.
They can also expose nearby communities to environmental hazards. Improper handling of petroleum waste may contaminate land and water.
Furthermore, the movement of sludge oil across state boundaries raises questions about supply-chain monitoring. Authorities must establish how the operators obtained and transported the materials.
The investigation could help identify those behind the operation. It may also reveal the scale of the suspected illegal refining activities.
The EFCC says its investigation remains ongoing. The commission’s findings will determine the next steps in the case.
