The Economic and Financial Crimes Commission (EFCC) has uncovered a suspected illegal refinery linked to Chinese operators in Ogere, Ogun State, where sludge oil sourced from Delta and Rivers states was allegedly processed into diesel for sale in Nigeria.
The facility, which was deserted when operatives raided it, contained underground tanks suspected to have been used for heating and processing sludge oil, as well as waste products from the refining operation.
The EFCC disclosed this in a statement on Tuesday by its Head of Media and Publicity, Dele Oyewale.
According to the commission, the discovery was made on Saturday, October 31, 2026, by operatives of its Lagos Zonal Directorate 2 following intelligence and surveillance on illegal sludge oil refining activities.
Oyewale said the operation followed an earlier crackdown on four illegal lithium processing plants in the area.
During the raid, operatives inspected two underground tanks containing substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.
Preliminary investigations indicated that the operators allegedly sourced sludge oil, also called black sludge, from Warri, Delta State, and Port Harcourt, Rivers State, before transporting it to the Ogere facility for processing.
The commission said the sludge oil was subjected to intense heat, allowing lighter petroleum components to pass through chambers and filters in a process believed to produce diesel for the Nigerian market.
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Oyewale said personnel at the facility told EFCC operatives that the Chinese operators had not disclosed their identities or the name of the company behind the refinery.
“The refinery was found deserted when EFCC operatives stormed the premises,” the statement said, adding that waste products from the refining process were recovered at the site.
The EFCC said its Lagos Zonal Directorate 2 had taken over the premises as investigations continued to establish the identities of the operators, ownership of the facility and the extent of the suspected illegal activities.
The commission described the investigation as part of efforts to tackle economic and financial crimes, including activities suspected to constitute economic sabotage.
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