EFCC discovers illegal Chinese‑run oil refinery in Ogun State

The Economic and Financial Crimes Commission (EFCC) announced that operatives from its Lagos Zonal Directorate 2 raided an illegal oil refinery in the Ogere area of Ogun State on Saturday, 31 October 2026. The facility was found deserted, but investigators recovered waste products, underground tanks and evidence suggesting the processing of sludge oil. EFCC spokesperson Dele Oyewale, head of media and publicity, said the refinery is believed to have been operated by Chinese nationals, although the operators did not disclose their identities or the company name.

Preliminary investigations indicated that the sludge oil – also known as black sludge – was sourced from Warri in Delta State and Port Harcourt in Rivers State. The material was transported to the Ogere site where it was subjected to intense heat, allowing lighter petroleum components to pass through chambers and filters. The EFCC believes the process produced automotive gas oil (AGO), a form of diesel, for sale in the Nigerian market. Underground tanks inspected at the site were reported to contain substances suspected to be diesel.

Background

The raid follows a series of recent EFCC actions targeting illegal refining and processing activities in Ogun State. Earlier in the week, the commission arrested 14 Chinese nationals and one Nigerian in connection with illegal lithium processing at four separate facilities in the same region. Those arrests were part of a broader crackdown on illicit sludge oil refining, which the EFCC has been monitoring through intelligence and surveillance operations. The discovery of the Ogere refinery adds to the pattern of foreign‑run illegal enterprises that the commission says undermine Nigeria’s oil sector and constitute economic sabotage.

Why it matters

The illegal refinery is significant for several reasons. First, the processing of sludge oil into usable diesel bypasses regulatory oversight, potentially compromising fuel quality and environmental safety. Second, the involvement of Chinese nationals reflects ongoing concerns about foreign operators engaging in unlawful activities without proper licensing. Third, the use of waste oil from Delta and Rivers states links the operation to broader regional supply chains, suggesting a network that could affect multiple states. The EFCC’s seizure of the site and its ongoing investigation aim to identify the owners, assess the scale of the operation and prevent further economic loss.

What happens next

EFCC operatives have taken control of the Ogere premises while investigations continue to establish the identities of the operators and the full extent of the illegal activities. The commission has not yet disclosed any arrests directly related to the refinery raid, but it indicated that further actions, including possible prosecutions, will follow as evidence is gathered. The agency’s statement suggests that additional enforcement steps may be taken against similar illegal refining operations across the country.