EFCC uncovers Chinese-linked illegal refinery in Ogun, probes operators

By Ezurike Ugochukwu

The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State, where underground tanks containing substances suspected to be diesel were discovered.

The facility was uncovered on Saturday, October 31, 2026, by operatives of the commission’s Lagos Zonal Directorate 2 following intelligence gathering and surveillance of suspected illegal sludge oil refining activities.

The EFCC disclosed the development in a statement issued on Tuesday by its Head of Media and Publicity, Dele Oyewale.

According to the commission, the facility was deserted when operatives arrived, following an earlier crackdown on four illegal lithium-processing plants in the same area.

However, the operatives discovered waste products from the refining process and underground tanks believed to have been used for heating and processing sludge oil.

The commission said two of the underground 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 known 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 operators allegedly 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 AGO for commercial sale in the Nigerian market.

It added that security personnel at the facility told investigators that the Chinese nationals allegedly behind the operation never disclosed their identities or the name of the company responsible for the refinery.

Consequently, operatives of the Lagos Zonal Directorate 2 have taken over the premises as investigations continue to establish the identities of the suspected operators, ownership of the facility and the full extent of the alleged illegal activities.

The commission said the investigation would also determine the extent of suspected economic sabotage associated with the operation.

The latest discovery comes against the backdrop of the EFCC’s recent crackdown on four illegal lithium-processing facilities in Ogere, where 15 suspects, comprising 14 Chinese nationals and a Nigerian, were reportedly arrested over alleged illegal mineral-processing activities.

The oil refinery discovery raises further questions about the activities of unidentified operators engaging in suspected illegal industrial operations in the area.

The EFCC said investigations were ongoing, with a view to identifying all individuals and interests connected to the facility and establishing the full circumstances surrounding its operations.