EFCC Uncovers Chinese-Operated Illegal Oil Refinery in Ogun

The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refining facility allegedly operated by Chinese nationals in Ogere, Ogun State, following an intelligence-led operation targeting suspected economic crimes in the area.

Operatives of the Lagos Zonal Directorate 2 of the commission carried out the operation on Saturday, October 31, 2026, after conducting surveillance on the activities of suspected illegal sludge oil processors.

The facility was deserted when the EFCC team arrived, with no operators found on the premises. However, investigators discovered waste materials believed to have been generated from the refining process.

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

Preliminary investigations indicated that the operators obtained sludge oil, also called black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting the material to Ogere for processing.

The suspected operators allegedly used intense heat to separate lighter petroleum components from the sludge oil. The substances were then passed through a series of chambers and filters in a process believed to produce diesel for sale in the Nigerian market.

The discovery followed an earlier EFCC operation in the same area, during which four illegal lithium processing plants were reportedly uncovered and shut down.

During the latest operation, security personnel at the facility told investigators that the Chinese operators had not disclosed their identities or the name of the company behind the business.

The absence of the operators has made it difficult for investigators to immediately establish who owned or controlled the facility.

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

The commission is also investigating the movement of sludge oil from the Niger Delta to Ogun State and the processes allegedly used to convert the waste material into petroleum products for commercial distribution.

The discovery has raised fresh concerns about illegal petroleum processing and the potential environmental and economic consequences of unregulated refining activities.

The EFCC said its investigation would focus on uncovering the individuals and business interests behind the facility and determining whether the activities amounted to economic sabotage.

No arrests were reported in connection with the operation as of the time of the announcement. The identities of the suspected Chinese operators and the company allegedly responsible for the facility have also not been established.

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