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

The discovery followed a raid by operatives of the commission’s Lagos Zonal Directorate 2 on Saturday, October 31, after intelligence gathering and surveillance reportedly linked the facility to suspected illegal refining activities.

In a statement on Tuesday, the EFCC’s Head of Media and Publicity, Dele Oyewale, said the facility was deserted when operatives arrived, following an earlier operation against four illegal lithium-processing plants in the area.

However, the operatives discovered waste products from the refining process, underground tanks believed to have been used for heating and processing sludge oil, as well as substances suspected to be diesel.

The commission disclosed that two of the underground tanks inspected contained substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.

Preliminary investigations indicated that the operators sourced sludge oil, also known as black sludge, from Warri, Delta State, and Port Harcourt, Rivers State, before transporting it to Ogere for processing.

According to the EFCC, the suspected 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 diesel for commercial distribution.

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

The EFCC has since taken over the premises as investigations continue to establish the identities of the suspected operators, the ownership of the facility and the full scope of the alleged illegal activities.

It said the investigation would also determine the extent of the suspected economic sabotage associated with the operation.