EFCC Uncovers Illegal Refinery Ogun: Chinese Nationals Suspected

• The EFCC uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State, on October 31, 2026.
• The deserted facility contained waste products and underground tanks used for processing sludge oil into diesel (AGO).
• Sludge oil was sourced from Warri and Port Harcourt and transported to Ogere for refining.
• Operators did not disclose their identities or company name to facility personnel.
• The EFCC's Lagos Zonal Directorate 2 has secured the site and is continuing investigations into the operators and ownership.

This EFCC crackdown highlights a persistent challenge within Nigeria's petroleum sector, particularly concerning unauthorized refining and the illicit trade of petroleum products like AGO.

The Economic and Financial Crimes Commission (EFCC) has successfully uncovered an illicit oil refining operation in the Ogere area of Ogun State, allegedly managed by Chinese nationals. This significant discovery, made on Saturday, October 31, 2026, by operatives from the EFCC's Lagos Zonal Directorate 2, was the culmination of extensive intelligence gathering and surveillance focused on the activities of illegal sludge oil refiners. According to a statement issued on Tuesday by Dele Oyewale, the EFCC's Head of Media and Publicity, the facility was found deserted when law enforcement personnel arrived to execute the operation.

This particular EFCC crackdown in Ogere followed closely on the heels of the Commission's earlier intervention against four illegal lithium processing plants located within the same geographical area. Despite the absence of any individuals at the site, investigators found compelling evidence of refining activities. This included the presence of waste products from the refining process and a series of underground tanks, which are strongly suspected to have been used for the heating and processing of sludge oil, indicating a clandestine industrial setup for Ogere illegal petroleum processing.

Further detailed inspection of the premises revealed that two of the underground tanks contained substances believed to be Automotive Gas Oil (AGO), widely recognized as diesel. Preliminary investigations conducted by the EFCC indicate that the operators sourced their primary raw material, sludge oil—also known as black sludge—from distant locations. These included Warri in Delta State and Port Harcourt in Rivers State, from where it was then transported to the illegal facility in Ogere for processing. This complex logistics chain highlights the organized nature of the Chinese illegal oil refinery Nigeria.

The refining method employed at the site involved subjecting the sludge oil to intense heat. This critical step allowed lighter petroleum components to separate and pass through various chambers and filters. The ultimate objective of this sophisticated sludge oil refining process was believed to be the production of diesel, intended for illicit sale within the Nigerian market, contributing to illegal AGO production Nigeria. Personnel previously associated with the facility informed EFCC operatives that the Chinese operators consistently refrained from disclosing their identities or the name of the company behind the operation.

The Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission Ogun has since taken control of the premises, with investigations actively continuing. The primary objectives of these inquiries are to definitively establish the identities of the operators involved, determine the true ownership of the facility, and ascertain the full extent of the suspected illegal activities, which are being treated as acts of economic sabotage. The clandestine nature of the operation, coupled with the involvement of foreign nationals and the complex supply chain for raw materials, underscores the significant challenges posed by such illicit ventures to Nigeria's economy and regulatory framework.

This EFCC crackdown highlights a persistent challenge within Nigeria's petroleum sector, particularly concerning unauthorized refining and the illicit trade of petroleum products like AGO. The Commission's commitment to dismantling these networks and prosecuting those responsible is crucial for maintaining market integrity and ensuring environmental compliance. The ongoing investigation aims to bring clarity to the full scope of this illegal enterprise and hold all culpable parties accountable.

Lawyers and compliance officers should advise clients in the oil and gas sector, especially those involved in refining, waste oil management, or related logistics, to review their operational licenses and environmental compliance. This EFCC action signals heightened enforcement risk for non-compliant operations, particularly those involving foreign nationals and complex supply chains for raw materials like sludge oil, potentially exposing businesses to charges of economic sabotage.

Source: Original reporting via PUNCH Newspapers