The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State, with preliminary investigations tracing its sludge oil supply to Delta and Rivers States.
The commission disclosed this in a statement on Tuesday through its Head of Media and Publicity, Dele Oyewale.
According to the EFCC, the discovery followed an operation conducted on October 31, 2026, by operatives of its Lagos Zonal Directorate 2, based on intelligence and surveillance on suspected illegal sludge oil refining activities.
The facility was reportedly deserted when operatives arrived, but they discovered waste products from the refining process, alongside underground tanks allegedly 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.
The commission said preliminary investigations indicated that the operators sourced sludge oil, also known as black sludge, from Warri, Delta State, and Port Harcourt, Rivers State, before transporting it to the Ogere facility for processing.
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The suspected operators allegedly subjected the sludge to intense heat, passing lighter petroleum components through chambers and filters to produce diesel for sale in the Nigerian market.
The EFCC added that security personnel at the facility could not provide the identities of the Chinese operators or the company behind the operation.
Following the discovery, operatives took over the premises, while investigations continued to establish the identities of those involved, ownership of the facility and the extent of the suspected illegal activities.
The development comes days after the commission arrested 14 Chinese nationals and one Nigerian over alleged illegal lithium processing operations at four facilities in Ogun State.
In a related development, a Federal High Court in Jos ordered the deportation of four Chinese nationals convicted of illegal dealings in solid minerals in May 2025. The court also ordered the forfeiture of approximately N134.9 million linked to their activities to the Federal Government.
Meanwhile, the Nigerian Navy recently uncovered another suspected illegal refining site in Rivers State, where approximately 114,500 litres of petroleum products were discovered during an operation on October 15, 2026.
The discovery formed part of intensified efforts by security agencies to combat crude oil theft, illegal refining and other activities threatening Nigeria’s petroleum resources.
