The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal refinery in Ogun State, allegedly operated by Chinese nationals in the Ogere area. The discovery has renewed concerns about unauthorised petroleum processing, environmental safety and the monitoring of foreign-owned businesses operating within Nigeria’s industrial sector.
EFCC operatives from the Lagos Zonal Directorate 2 discovered the facility during an intelligence-led operation on October 31, 2026. Their inspection revealed underground storage tanks and specialised equipment that operators allegedly used to process petroleum sludge into diesel.
According to preliminary findings, the facility contained two tanks holding substances suspected to be Automotive Gas Oil (AGO), a petroleum product commonly known as diesel. Investigators believe the operators used the equipment to convert petroleum waste into a commercial product without the necessary regulatory authorisation.
The discovery has also raised questions about how the operators established the facility, sourced their raw materials and maintained the business without attracting earlier attention from relevant regulatory authorities.
Illegal Refinery in Ogun: How the Operators Processed Petroleum Sludge
Preliminary investigations indicate that the operators obtained black sludge from Warri in Delta State and Port Harcourt in Rivers State before transporting the material to their facility in Ogere.
The sludge reportedly underwent a heating and filtration process designed to extract usable petroleum products. Investigators believe the operators exposed the material to intense heat before passing it through different chambers and filtration equipment to produce diesel.
This method suggests that the facility operated as an unregulated petroleum-processing plant rather than a conventional storage location. The presence of underground tanks and processing equipment further supports the EFCC’s suspicion that the operators used the premises for commercial petroleum activities.
However, investigators still need to establish the exact scale of production, the volume of petroleum products processed and the length of time the facility remained operational.
When EFCC operatives arrived at the location, they found the facility deserted. The Chinese nationals allegedly connected to the operation were not present during the inspection.
Security personnel at the premises reportedly informed investigators that the operators had never disclosed their identities or provided the name of the company responsible for running the business. This has created another challenge for investigators as they work to identify the individuals behind the operation.
EFCC Investigates Illegal Refinery in Ogun
Following the discovery, the EFCC took control of the premises and commenced further investigations to determine the ownership and activities of the facility.
The agency is working to establish the identities of the alleged operators, trace the ownership of the equipment and determine whether other individuals or business organisations supported the operation. Investigators will also need to establish how the operators obtained their petroleum sludge and where they intended to distribute the finished products.
Although the authorities have not confirmed any arrests, the investigation could reveal additional information about the network responsible for the suspected illegal petroleum activities.
The discovery also comes after an earlier EFCC operation against four illegal lithium-processing facilities in the same Ogere area. The latest development has therefore drawn attention to concerns about unregulated industrial activities and the need for stronger monitoring of businesses operating in the community.
Concerns Over Illegal Petroleum Processing and Regulatory Enforcement
Illegal petroleum processing presents several challenges for Nigeria, particularly as the country continues to strengthen its oil and gas industry and improve revenue generation from natural resources.
Operators who process petroleum products without the required approvals can undermine legitimate businesses, create unfair competition and expose consumers to products that may not meet established quality standards.
Environmental protection also remains an important concern. Petroleum sludge contains potentially harmful substances, and improper heating, storage or disposal can contaminate soil, groundwater and nearby communities. Without appropriate safety measures, these activities can expose workers and residents to serious environmental hazards.
The involvement of foreign nationals in the alleged operation also raises questions about business registration, industrial permits and the responsibilities of agencies tasked with monitoring foreign investments.
However, the investigation must establish the facts before authorities can determine the full extent of any wrongdoing.
For now, the EFCC’s discovery in Ogere represents another reminder of the challenges facing Nigeria’s efforts to control illegal resource processing. Identifying those behind the facility, tracing its operations and determining the extent of its activities will be important steps in holding the responsible parties accountable.