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, with suspected diesel and underground processing tanks discovered at the facility.
The commission said the discovery was made on Saturday, October 31, 2026, by operatives of its Lagos Zonal Directorate 2 following intelligence gathering and surveillance of illegal sludge oil refining activities.
The EFCC disclosed this in a statement issued on Tuesday by its Head of Media and Publicity, Dele Oyewale.
According to the commission, the facility was deserted when its operatives stormed the premises, following an earlier crackdown on four illegal lithium processing plants in the area.

However, the operatives reportedly discovered waste products from the refining process and underground tanks suspected to have been used for heating and processing sludge oil.
The statement partly read, “The Economic and Financial Crimes Commission uncovered an illegal oil refinery operated by Chinese in the Ogere area of Ogun State.
“The operation, conducted on Saturday, October 31, 2026, by operatives of the Lagos Zonal Directorate 2 of the EFCC, followed credible intelligence and surveillance by the Commission on the activities of the illegal sludge oil refiners.

“The refinery was found deserted when EFCC operatives stormed the premises, following the Commission’s earlier clampdown on four illegal lithium processing plants in the area. However, waste products from the refining process were discovered at the location.”
Oyewale said further inspections revealed that two of the underground tanks contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
“Two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), otherwise known as diesel,” he said.
The EFCC said 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 it to Ogere for processing.
According to the commission, the operators allegedly subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through chambers and filters in a process believed to produce diesel for sale in the Nigerian market.
The Commission said the suspected operation raised concerns about illegal petroleum processing and possible economic sabotage, although investigations are ongoing to establish the full extent of the activities.
The EFCC said workers found at the facility were unable to provide the identities of the Chinese nationals allegedly operating the refinery or the name of the company behind the business.
“Personnel at the facility told EFCC operatives that the Chinese operators never disclosed their identities nor the name of the company behind the facility,” Oyewale said.
He added that operatives of the Lagos Zonal Directorate 2 had taken over the premises as investigations continued.
“Consequently, operatives of the Lagos Zonal Directorate 2 of the EFCC have since taken over the premises as investigations continue to establish the identities of the operators, the ownership of the facility and the full extent of the suspected illegal activities and economic sabotage,” he added.
The Commission said its investigation would focus on identifying those behind the facility, determining its ownership and establishing the extent of the suspected illegal refining activities.
As of the time of the announcement, the EFCC had not disclosed any arrests in connection with the discovery.
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