The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have sealed a suspected illegal refinery in Ogere-Remo, Ikenne Local Government Area of Ogun State, after uncovering underground storage facilities with a capacity exceeding 90,000 litres.
The facility, which investigators believe had operated for years, was discovered following whistleblower information and intelligence. Authorities described it as a fenced site covering more than three hectares, equipped with locally fabricated tanks, underground heating systems, cooling hydrants and silos used to separate processed materials.
During a joint inspection, officials found substances suspected to include sludge oil, refining waste and Automotive Gas Oil (AGO), commonly known as diesel. The NMDPRA sealed the site and confiscated the recovered products.
Ogun State NMDPRA Coordinator, Dr Atilola Akinyemi, said the facility had no approval from any regulatory agency and was operating outside the legal framework governing petroleum processing.
“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority, and its operations are unknown to the relevant authorities,” Akinyemi said.
He noted that although the operators appeared technically skilled, the setup was designed to evade regulatory oversight. He cautioned that the recovered product could not be confirmed as diesel without laboratory testing, warning that adulterated fuel entering the market could damage vehicles and engines.
EFCC Lagos Zonal Directorate 2 Director, Bawa Usman Kaltungo, who led the operation, said the refinery was uncovered through whistleblowing. He described the site as a complete processing setup in which sludge was converted into a product resembling diesel.
Kaltungo said the same Ogere area had recently drawn attention over other alleged illegal activities involving foreign nationals. He cited the arrest of 14 Chinese nationals a week earlier over suspected illegal lithium processing.
According to him, some of those arrested lacked passports, while others had expired visas, including documents that had reportedly lapsed about three months earlier. He said authorities would pursue the alleged owners based in China and bring them to Nigeria to face investigation.
EFCC Director of Proceeds of Crime Management, Gbolahan Latona, urged Nigerians to help prevent criminal operations that undermine legitimate investments, including those made by Dangote Refinery.
Latona said the suspects would be prosecuted after investigators gathered sufficient evidence. He added that any proceeds of crime forfeited following conviction would be transferred to the government and put to appropriate use.