The Economic and Financial Crimes Commission (EFCC) has uncovered an illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State, where sludge oil sourced from Warri, Delta State, and Port Harcourt, Rivers State, was reportedly processed into diesel for sale in the Nigerian market.

This followed intelligence gathering and surveillance by operatives of the commission’s Lagos Zonal Directorate 2 on the activities of illegal sludge oil refiners in the area.

The EFCC said the operation was conducted on Saturday, October 31, 2026, adding that the facility was deserted when its operatives stormed the premises.

Dele Oyewale, Head of Media and Publicity of the commission, disclosed this in a statement issued on Tuesday, noting that the discovery came after the EFCC’s earlier crackdown on four illegal lithium processing plants in the area.

Although the operators were no longer at the facility when the operatives arrived, the commission said it discovered waste products from the refining process, as well as underground tanks suspected to have been used for heating and processing sludge oil.

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According to the statement, two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.

Preliminary investigations by the commission indicated that the operators sourced sludge oil, also known as black sludge, from Warri and Port Harcourt before transporting the material to the Ogere facility for processing.

The EFCC said the operators subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through chambers and filters in a process believed to produce diesel for commercial sale in the Nigerian market.

The commission said personnel found at the facility told its operatives that the Chinese nationals behind the operation had never disclosed their identities or the name of the company responsible for running the refinery.

This has made it difficult for investigators to immediately establish the identities of the operators and the ownership of the facility.

“Consequently, operatives of the Lagos Zonal Directorate 2 of the EFCC have since taken over the premises as investigations continue to establish the identities of the operators, the ownership of the facility and the full extent of the suspected illegal activities and economic sabotage,” the statement said.

The EFCC said investigations were ongoing to determine the full extent of the suspected illegal activities and establish those behind the operation.