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The Economic and Financial Crimes Commission (EFCC) has disclosed that it uncovered an illegal oil refinery allegedly operated by Chinese nationals in the Ogere area of Ogun State and traced the sludge oil discovered at the facility to Delta and Rivers states.
This was disclosed in a statement on Tuesday by Dele Oyewale, Head of Media and Publicity at the EFCC.
The development comes days after the Commission arrested 14 Chinese nationals and one Nigerian over alleged illegal lithium processing activities at four facilities in Ogun State.
What the EFCC is saying
According to the Commission, the operation was conducted on Saturday, October 31, 2026, by operatives of the EFCC’s Lagos Zonal Directorate 2, following credible intelligence and surveillance on the activities of illegal sludge oil refiners.
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The EFCC spokesperson stated that the refinery was deserted when operatives stormed the premises, following the Commission’s earlier clampdown on four other illegal lithium processing plants in the area.
- “However, waste products from the refining process were discovered at the location,” the Commission added.
The spokesperson explained that during the raid, underground tanks allegedly used for heating and processing sludge oil were also discovered.
Two of the underground tanks inspected were said to contain substances suspected to be diesel (Automotive Gas Oil).
The Commission maintained that preliminary investigations revealed that the operators sourced sludge oil, also known as black sludge, from Warri, Delta State, and Port Harcourt, Rivers State, and transported it to the illegal facility in Ogere for processing.
The Commission further explained that the illegal operators subjected the sludge oil to intense heat, allowing lighter petroleum components to pass through a series of chambers and filters in a process believed to produce Automotive Gas Oil (AGO) for sale in the Nigerian market.
Citing security personnel at the facility, the EFCC stated that the Chinese operators had neither disclosed their identities nor revealed the name of the company behind the facility.
Consequently, operatives of the EFCC’s Lagos Zonal Directorate 2 have taken over the premises.
The Commission emphasised that 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.
Nigeria intensifies illegal mining crackdown
The latest development comes amid sustained efforts by law enforcement and anti-graft agencies to tackle unauthorised mining and refining operations, including identifying individuals and financiers responsible for illegal mineral extraction.
In May 2025, the 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 ordered the forfeiture of approximately ₦134.9 million linked to the unlawful activities to the Federal Government.
What you should know
In a related development, the Nigerian Navy recently uncovered a suspected illegal refining site containing approximately 114,500 litres of petroleum products in Rivers State.
The discovery was made on Thursday, October 15, 2026, amid intensified operations against crude oil theft and illegal refining in the Niger Delta.
The Director of Naval Information, Navy Captain Abiodun Folorunsho, disclosed this in a statement detailing the Navy’s recent operations.
The Navy also arrested 10 suspected drug offenders in a separate joint operation with the National Drug Law Enforcement Agency (NDLEA) in Delta State between October 14 and 15, 2026.
