The Economic and Financial Crimes Commission (EFCC) has uncovered a suspected illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State, following intelligence gathering and surveillance of activities linked to illegal petroleum processing.
The discovery was made on Saturday, October 31, 2026, by operatives of the EFCC’s Lagos Zonal Directorate 2, according to a statement issued on Tuesday, November 3, by the Commission’s Head of Media and Publicity, Dele Oyewale.
The operation followed the Commission’s earlier crackdown on four suspected illegal lithium-processing plants in the same area, where several foreign nationals were arrested over alleged illegal mineral-processing activities.
According to the EFCC, operatives found the suspected oil-processing facility deserted when they arrived. However, they discovered waste products believed to have originated from the refining process, alongside underground tanks suspected to have been used for heating and processing sludge oil.
The Commission disclosed that two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
How the Illegal Refinery Allegedly Operated
Preliminary investigations by the EFCC reportedly indicated that the operators sourced sludge oil, also known as black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting the materials to Ogere for processing.
The Commission explained that the operators allegedly subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through a series of chambers and filtration systems in a process believed to produce Automotive Gas Oil for commercial sale in the Nigerian market.
The suspected operation raises concerns about unauthorised petroleum processing, regulatory violations and possible economic sabotage.
The EFCC further disclosed that security personnel found at the premises told investigators that the Chinese nationals allegedly operating the facility never revealed their identities or the name of the company behind the business.
Discovery Follows Arrests Over Illegal Lithium Processing
The latest discovery comes against the backdrop of an earlier EFCC operation in Ogere targeting suspected illegal mineral-processing activities.
On October 23, 2026, operatives of the Commission arrested 15 suspects, comprising 14 Chinese nationals and a Nigerian, over alleged illegal lithium-processing activities at four facilities in the area.
The arrests were announced by the EFCC on October 26. During the operation, investigators reportedly recovered bags of lithium rocks, 18 mobile phones, four laptop computers, two decoders, a television remote control and a trailer truck.
The Commission said the suspects would be charged to court upon the conclusion of investigations.
The discovery of the suspected oil refinery represents another development in the EFCC’s investigations into alleged illegal industrial and extractive activities in Ogere.
However, there is no official confirmation that the individuals arrested over the lithium-processing operations were connected to the suspected oil refinery.
Following the discovery, operatives of the Lagos Zonal Directorate 2 have taken over the premises as investigations continue.
The Commission said the ongoing investigation would focus on identifying the alleged Chinese operators, establishing the ownership of the facility, determining the source and volume of the sludge oil processed, and uncovering the full extent of the suspected illegal activities.
Investigators are also expected to establish the extent of any economic losses or other violations associated with the operation.
As of Tuesday, November 3, the EFCC had not announced any arrests specifically connected to the suspected illegal refinery.
The Commission has yet to disclose the identities of the alleged operators or the company behind the facility.
The investigation is expected to provide further details about the operation, its supply chain and the possible involvement of other individuals or business interests in the suspected illegal petroleum-processing activities.