EFCC uncovers illegal oil refinery operated by Chinese nationals in Ogun State

Oghenovo Egodo-Michael 16:48 - 04 November 2026

The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State.

The EFCC discovered two underground tanks containing substances suspected to be diesel at the abandoned refinery in Ogun State.

Investigators discovered that the illegal refinery sourced black sludge from Warri, Delta State, and Port Harcourt, Rivers State, for processing into suspected diesel.

Security personnel reportedly told EFCC operatives that the Chinese operators never revealed their identities or the company behind the refinery.

The discovery followed a raid on Saturday, October 31, 2026, by operatives of the commission's Lagos Zonal Directorate 2, after intelligence and surveillance exposed the activities of suspected illegal sludge oil refiners in the area.

According to a statement by the EFCC, the facility was deserted when operatives stormed the premises. The raid came after the commission's earlier crackdown on four illegal lithium processing plants in the same area.

Although no operators were found at the site, investigators discovered waste products from the refining process and underground tanks believed to have been used for heating and processing sludge oil.

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

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

The EFCC said 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 diesel for sale in the Nigerian market.

EFCC Uncovers Chinese-Operated Illegal Oil Refinery in Ogun The Economic and Financial Crimes Commission, EFCC, has uncovered an illegal oil refinery operated by Chinese in the Ogere area of Ogun State. The operation, conducted on Saturday, October 31, 2026, by operatives of the Lagos Zonal Directorate 2 of the EFCC, followed credible intelligence and surveillance by the Commission on the activities of the illegal sludge oil refiners. The refinery was found deserted when EFCC operatives stormed the premises, following the Commission's earlier clampdown on four illegal lithium processing plants in the area. However, waste products from the refining process were discovered at the location. During the raid, underground tanks believed to have been used for heating and processing the sludge oil were also discovered. Two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), otherwise known as diesel. Preliminary investigations revealed that the operators sourced sludge oil, also known as black sludge, from Warri, Delta State, and Port Harcourt, Rivers State, and transported it to the illegal facility in Ogere for processing. Further investigation revealed that the illegal 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 Automotive Gas Oil (AGO) for sale in the Nigerian market. Security personnel at the facility told EFCC operatives that the Chinese operators never disclosed their identities nor the name of the company behind the facility. Consequently, operatives of the Lagos Zonal Directorate 2 of the EFCC have since taken over the premises as investigations continue to establish the identities of the operators, the ownership of the facility and the full extent of the suspected illegal activities and economic sabotage.
— EFCC Nigeria (@officialEFCC) November 3, 2026

Investigators also encountered security personnel at the facility, who reportedly told them that the Chinese operators never disclosed their identities or the name of the company behind the operation.

The commission has since taken over the premises as investigations continue to establish the identities of the operators, the ownership of the facility and the full extent of the suspected illegal activities.

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