EFCC uncovers alleged Chinese-operated illegal oil refinery in Ogun
The Economic and Financial Crimes Commission (EFCC) says it has uncovered an illegal oil refinery allegedly operated by Chinese nationals in Ogere, Ogun State, as part of a wider crackdown on suspected illicit industrial and petroleum activities.
The facility was discovered on October 31 by operatives of the commission’s Lagos Zonal Directorate 2 following intelligence gathering and surveillance on suspected illegal sludge oil processing activities, EFCC spokesperson Dele Oyewale said in a statement on Tuesday.
According to the commission, the refinery was deserted when investigators arrived, but they found waste products from the refining process, underground tanks believed to have been used for heating and processing sludge oil, and substances suspected to be diesel in two of the tanks.
The EFCC said preliminary investigations indicated that the operators sourced 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 material was allegedly subjected 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), commonly known as diesel, for sale in the Nigerian market.
“Waste products from the refining process were discovered at the location,” Oyewale said, adding that two underground tanks inspected by operatives contained substances suspected to be AGO.
The commission said security personnel at the facility told investigators that the Chinese nationals allegedly operating the refinery had not disclosed their identities or the name of the company behind the business.
EFCC operatives have taken over the premises while investigations continue to establish who owns and operates the facility, identify those involved and determine the extent of the suspected illegal activities.
The discovery followed an earlier EFCC operation in the same area in which four illegal lithium processing plants were shut down, suggesting that the commission’s investigations in Ogere extend beyond suspected petroleum-related activities.
The latest operation also draws attention to the informal processing of petroleum waste and sludge, which authorities say may be converted into products for commercial sale outside established regulatory and quality-control channels.
However, the EFCC has not disclosed the volume of sludge oil processed, the quantity of suspected diesel recovered, the estimated value of the operation or whether any arrests have been made. It has also not established the identities of the alleged Chinese operators.
The investigation is expected to determine the ownership structure of the facility, the source and movement of the raw materials, and whether the suspected products were distributed to buyers in the domestic market.
