EFCC Uncovers Suspected Illegal Oil Refinery Linked to Chinese Nationals in Ogun State

By CentralNewsNG News Desk | November 4, 2026

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.

The discovery followed an intelligence-led operation conducted on Saturday, October 31, 2026, by operatives of the commission’s Lagos Zonal Directorate 2.

According to the EFCC, the facility was suspected of processing sludge oil obtained from parts of the Niger Delta into Automotive Gas Oil (AGO), commonly known as diesel, for distribution within the Nigerian market.

The commission’s Head of Media and Publicity, Dele Oyewale, disclosed the development in a statement released on Tuesday, November 3.

Investigators reportedly found underground processing tanks, suspected petroleum products and waste materials at the location.

However, the premises were deserted when EFCC operatives arrived, and the commission has yet to publicly identify the alleged operators or establish the legal ownership of the facility.

EFCC Raids Suspected Illegal Refinery in Ogere

The anti-graft agency said the operation followed intelligence gathering and surveillance of suspected illegal sludge oil processing activities in Ogere.

According to Oyewale, the commission had been monitoring activities linked to unauthorised refining operations before moving into the premises.

The discovery came after an earlier enforcement operation against four suspected illegal lithium processing plants in the same area.

Although investigators did not encounter the alleged refinery operators during the raid, they discovered materials and equipment believed to have been used in petroleum processing.

The EFCC said waste products associated with refining activities were found at the location.

Operatives also uncovered underground tanks suspected of being used to heat and process sludge oil.

Two of the tanks reportedly contained substances believed to be Automotive Gas Oil, a petroleum product widely used to power diesel engines, industrial machinery and electricity generators.

The agency has not announced the results of laboratory tests confirming the composition or quality of the substances recovered.

Suspected Refinery Sourced Sludge Oil From Rivers and Delta

Preliminary findings by the EFCC indicated that the suspected operators obtained sludge oil, sometimes described as black sludge, from Warri in Delta State and Port Harcourt in Rivers State.

The materials were allegedly transported to Ogere for processing.

According to the commission, investigators believe the facility used heating and separation equipment to recover lighter petroleum components from the sludge.

The suspected processing arrangement involved chambers and filters intended to produce a fuel resembling diesel.

The EFCC said the resulting product was believed to have been prepared for sale in the domestic market.

However, the agency has not disclosed the quantity of sludge oil processed, the volume of suspected diesel produced or the number of customers allegedly supplied.

It has also not established whether the raw materials were stolen, purchased through unauthorised channels or obtained from other sources.

Those questions remain part of the wider investigation into the operation.

Chinese Nationals Allegedly Linked to Facility

One of the major issues under investigation is the identity of those who allegedly controlled the refinery.

The EFCC said security personnel at the premises informed investigators that Chinese nationals were involved in operating the facility.

According to the commission, the personnel claimed that the alleged operators had not disclosed their identities or the name of the company behind the business.

The agency has not publicly named any Chinese national in connection with the discovery.

It has also not announced an arrest arising directly from the October 31 refinery operation.

The allegations concerning the nationality of the operators therefore remain unproven pending further investigation.

Establishing ownership will be important in determining whether the facility operated under a registered company, whether it possessed any relevant permits and who was responsible for its activities.

The nationality of an alleged operator does not, by itself, establish criminal wrongdoing. Any individual implicated in the investigation remains entitled to due process.

EFCC Takes Control of Refinery Premises

Following the discovery, the EFCC said operatives of its Lagos Zonal Directorate 2 took control of the premises.

The commission explained that investigators were working to determine the identities of the alleged operators, the ownership structure of the facility and the full extent of the suspected activities.

The agency is also examining whether the operation involved economic sabotage.

No official estimate of the financial value of the suspected refinery’s operations has been announced.

Similarly, the EFCC has not disclosed whether investigators recovered transaction records, invoices or other documents linking the facility to petroleum suppliers or buyers.

The outcome of these inquiries could help establish the scale of the suspected operation and whether additional individuals or businesses were involved.

Any decision to prosecute would depend on the evidence gathered and the applicable legal provisions.

Discovery Follows Crackdown on Illegal Lithium Plants

The refinery investigation follows a separate EFCC operation against four suspected illegal lithium processing plants in Ogere.

On October 23, the commission announced the arrest of 15 suspects, comprising 14 Chinese nationals and one Nigerian, over alleged illegal lithium processing activities.

That earlier operation formed part of the agency’s efforts to investigate suspected unauthorised activities in Nigeria’s extractive sector.

The two developments have attracted attention because both involved facilities located in the Ogere area.

However, the EFCC has not established that the refinery operators and the suspects arrested during the lithium investigation belonged to the same organisation.

The separate cases should therefore not be treated as evidence of a single criminal network without further confirmation.

The lithium suspects also remain entitled to the presumption of innocence unless convicted by a competent court.

Why Illegal Petroleum Processing Raises Economic Concerns

Unauthorised petroleum refining and distribution can create risks for Nigeria’s energy sector.

Depending on the circumstances, such operations may involve violations of petroleum regulations, unsafe processing practices, tax or revenue losses and the sale of products that have not undergone appropriate quality checks.

Nigeria’s petroleum industry operates under a regulatory framework that requires relevant authorisations for refining and other activities.

Investigators examining a suspected illegal facility would ordinarily need to establish the source of its raw materials, its licensing status, the nature of its processing activities and how any products were distributed.

These questions are particularly important in the Ogun case because the EFCC has not yet publicly identified the company or individuals responsible.

It is also unclear whether the suspected diesel recovered from the facility met applicable fuel quality standards.

Until testing and investigation are completed, the substances found at the premises should be described as suspected petroleum products rather than confirmed market-ready diesel.

Environmental and Public Safety Questions

Petroleum processing facilities require appropriate safeguards to manage flammable materials, waste products and potential environmental contamination.

Where such operations take place without adequate safety systems, surrounding communities may face risks involving fire, spills and improper disposal of industrial waste.

The EFCC reported finding waste materials and underground tanks at the Ogere premises.

However, the commission has not announced an environmental assessment of the site or confirmed that pollution occurred.

It has also not reported any fire outbreak, injuries or fatalities associated with the facility.

Environmental regulators may need to determine whether the site’s activities created risks to nearby land, water resources or residents.

Such an assessment would require evidence rather than assumptions based solely on the discovery of processing equipment.

Investigation Continues as Ownership Remains Unknown

The EFCC’s latest discovery has raised several questions about how the suspected refinery was established and operated.

Among the issues still to be resolved are the identity of the owners, the source of the sludge oil, the facility’s regulatory status and the destination of any products it may have supplied.

Investigators will also need to determine whether the operation violated petroleum, environmental or financial laws.

For now, the confirmed development is that EFCC operatives discovered a suspected unauthorised processing facility, recovered materials believed to be connected to petroleum refining and secured the premises for further investigation.

The agency has not announced a conviction, identified the alleged Chinese operators or confirmed the full scale of the suspected activities.

Further official findings will be necessary to establish responsibility and determine whether criminal charges will follow.

Sources: EFCC statement issued November 3, 2026, as reported by Independent Newspaper Nigeria, Channels Television, Premium Times, TheCable and Punch.