EFCC Uncovers Chinese-Operated Illegal Oil Refinery in Ogun, Suspects Diesel Production

Deserted Facility in Ogere Had Underground Processing Tanks as Investigation Targets Operators, Company Ownership and Possible Economic Sabotage

The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State, raising fresh concerns over the activities of foreign operators involved in suspected unlawful petroleum processing in Nigeria.

The discovery was made on Saturday, October 31, 2026, by operatives of the EFCC’s Lagos Zonal Directorate 2 following intelligence gathering and surveillance on the activities of suspected illegal sludge oil refiners.

According to the commission, the facility was deserted when its operatives stormed the premises, but they discovered waste materials from the refining process and underground installations believed to have been used for heating and processing petroleum sludge.

Two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.

Preliminary investigations reportedly indicated that the operators sourced sludge oil, popularly called black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting it to the Ogere facility for processing.

Investigators discovered that the suspected 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 AGO for commercial distribution in the Nigerian market.

The discovery has raised questions about the extent of the operation, the source of its raw materials and the possible distribution of illegally processed petroleum products.

### Chinese Operators’ Identities Unknown

A particularly troubling aspect of the investigation is the apparent difficulty in identifying the individuals and corporate interests behind the facility.

Security personnel at the premises reportedly told EFCC operatives that the Chinese operators never disclosed their identities or the name of the company responsible for running the refinery.

The commission said its operatives had taken over the facility as investigations continue to establish the identities of the operators, determine ownership of the premises and uncover the full extent of the suspected illegal activities.

The latest discovery comes after the EFCC’s earlier operation against four illegal lithium processing plants in the same area.

The commission’s renewed enforcement activities in Ogere point to a broader investigation into suspected unlawful industrial and mineral-processing operations in the locality.

### EFCC Investigates Possible Economic Sabotage

Beyond the suspected production of illegally refined diesel, investigators are expected to establish whether the operators possessed the necessary petroleum-processing approvals and environmental permits.

The investigation will also seek to determine the volume of petroleum sludge processed, the quantity of suspected diesel produced and whether the products were introduced into the Nigerian petroleum market.

The environmental implications of the operation are also significant, particularly given the discovery of waste products and underground processing facilities.

Improper handling and disposal of petroleum sludge can contaminate soil and groundwater, while uncontrolled heating and refining processes may expose surrounding communities to hazardous emissions.

The EFCC has consequently taken control of the premises while efforts continue to identify those behind the operation and determine whether the activities amount to economic sabotage.

The outcome of the investigation could shed further light on the involvement of foreign operators in suspected illegal petroleum activities and the effectiveness of regulatory oversight in Nigeria’s oil and gas sector.