EFCC uncovers Chinese operated illegal oil refinery with underground tanks in Ogun

By Our Correspondent

The Economic and Financial Crimes Commission (EFCC) has uncovered a suspected illegal oil refinery in Ogere, Ogun State, where underground tanks containing substances believed to be diesel were discovered during a raid on October 31, 2026.

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The facility was allegedly operated by Chinese nationals whose identities and the name of the company behind the operation remain unknown, according to preliminary findings by the commission.

The operation was carried out by operatives of the EFCC’s Lagos Zonal Directorate 2 following what the agency described as credible intelligence and surveillance on the activities of suspected illegal sludge oil refiners.

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The commission said the premises were deserted when its operatives arrived, although they discovered waste products believed to have originated from the refining process.

During the raid, operatives also uncovered underground tanks suspected to have been used for heating and processing sludge oil. Two of the tanks inspected reportedly contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.

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

According to the commission, 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 sale in the Nigerian market.

Security personnel at the facility reportedly told EFCC operatives that the alleged Chinese operators did not disclose their identities or the name of the company associated with the refinery.

The discovery comes after the commission’s earlier clampdown on four suspected illegal lithium processing plants in the same area.

The EFCC has since taken over the premises as investigations continue to establish the identities of those behind the operation, determine ownership of the facility and ascertain the full extent of the suspected illegal activities.

The commission is also expected to establish the circumstances surrounding the processing and distribution of the petroleum products and determine whether any financial crimes or other offences were committed.

The investigation is ongoing, and the identities of the alleged operators, as well as the ownership of the facility, have yet to be officially established.

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