The Economic and Financial Crimes Commission (EFCC) says it has uncovered an illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State.
The Commission disclosed that the operation, carried out on Saturday, October 31, 2026, by operatives of its Lagos Zonal Directorate 2, followed intelligence gathering and surveillance on the activities of illegal sludge oil refiners.
The development was contained in a statement issued on Tuesday by the EFCC Head of Media and Publicity, Dele Oyewale.
According to the Commission, the refinery was deserted when operatives stormed the premises, following an earlier crackdown on four illegal lithium processing plants in the area.
However, they discovered waste products from the refining process, as well as underground tanks believed to have been used for heating and processing sludge oil.
“Two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), otherwise known as diesel,” the statement said.
The EFCC said preliminary investigations showed 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 the facility in Ogere for processing.
It explained that further investigations indicated that the operators 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 Automotive Gas Oil (AGO) for sale in the Nigerian market.
The Commission added that security personnel at the facility told its operatives that the Chinese operators never disclosed their identities or the name of the company behind the operation.
Operatives of the Lagos Zonal Directorate 2 have since taken over the premises as investigations continue to establish the identities of the operators, ownership of the facility and the full extent of the suspected illegal activities and economic sabotage.
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