The Economic and Financial Crimes Commission (EFCC) has uncovered a suspected illegal oil refinery in the Ogere area of Ogun State, where sludge oil was allegedly processed into Automotive Gas Oil (AGO), commonly known as diesel.
Operatives from the Commission’s Lagos Zonal Directorate 2 raided the facility on Saturday, October 31, 2026, after what the EFCC described as credible intelligence and surveillance on the activities of illegal sludge oil refiners.
The premises were deserted when the operatives arrived.
The discovery followed an earlier EFCC clampdown on four illegal lithium processing plants in the area.
Although no operators were found at the refinery, investigators discovered waste products believed to be left over from the refining process, along with underground tanks thought to have been used to heat and process sludge oil.
Two of the tanks inspected contained substances suspected to be AGO, the Commission said.
Preliminary investigations indicate that the operators obtained sludge oil, also known as black sludge, from Warri in Delta State and Port Harcourt in Rivers State, then transported it to Ogere for processing.
According to the EFCC’s account, the suspected operation involved applying intense heat to the sludge oil so that lighter petroleum components could pass through a series of chambers and filters.
Investigators believe the process was used to produce AGO for sale in the Nigerian market.
The Commission has not announced any arrests in connection with the refinery.
Security personnel at the site reportedly told EFCC operatives that the Chinese operators did not disclose their identities or the name of the company behind the facility.
EFCC operatives have taken over the premises while investigations continue.
The Commission said it is working to establish who operated the refinery, who owns the facility and the full extent of the suspected illegal activities.
The investigation will also examine the alleged sourcing and movement of the sludge oil, the refinery’s processing methods and whether the suspected product was prepared for commercial sale.
The EFCC has described the suspected activities as economic sabotage.
However, it has yet to disclosed the value or volume of materials recovered from the site.
The discovery adds to the Commission’s recent enforcement activity in Ogere, where it had previously moved against four illegal lithium processing plants.
Investigators have not said whether the refinery and those plants were connected, or whether they shared operators or ownership.
For now, the facility remains under the control of the EFCC as enquiries proceed.
The identities of the operators and the company allegedly behind the refinery have not been established publicly, and the investigation is ongoing.
