The discovery of an illegal refinery allegedly operated by Chinese nationals in Ogun State has renewed attention on revenue losses and economic sabotage linked to unauthorised petroleum processing in Nigeria. The Economic and Financial Crimes Commission (EFCC) said operatives from its Lagos Zonal Directorate 2 carried out the operation in the Ogere area on Saturday, October 31, 2026, acting on credible intelligence and surveillance.
Dele Oyewale, Head of Media and Publicity at the EFCC, disclosed in a statement on Tuesday that the refinery was deserted when operatives arrived. Waste products from the refining process were found at the location, alongside underground tanks used for heating and processing sludge oil. Two of the tanks inspected contained substances suspected to be Automotive Gas Oil, commonly referred to as diesel.
Preliminary investigations indicated that the operators sourced the sludge oil, also known as black sludge, from Warri in Delta State and Port Harcourt in Rivers State before transporting it to Ogere for processing. The commission explained that intense heat was applied to the sludge, allowing lighter petroleum components to pass through a series of chambers and filters in a process believed to produce Automotive Gas Oil for sale in the Nigerian market.
The raid came after the commission's earlier arrest of 14 Chinese nationals and one Nigerian over alleged illegal lithium processing at four facilities in Ogun State. According to security personnel at the refinery, the Chinese operators had not disclosed their identities or the name of the company behind the facility.
Operatives of the Lagos Zonal Directorate 2 have taken over the premises. The EFCC said investigations would 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. Unregulated refining of this nature bypasses normal tax and royalty obligations, distorts the fuel market and imposes additional fiscal costs through enforcement and environmental remediation.
In May 2025, a Federal High Court in Jos ordered the deportation of four Chinese nationals — Liang Quin Yong, Wang Huajie, Zhong Jiajing and Long Kechong — following their conviction for illegal dealings in solid minerals. The court also directed the forfeiture of about ₦134.9 million to the Federal Government. Separately, the Nigerian Navy recently uncovered a suspected illegal refining site containing approximately 114,500 litres of petroleum products in Rivers State, with the discovery made on Thursday, October 15, 2026, according to the Director of Naval Information, Navy Captain Abiodun Folorunsho.
