# Illegal oil refining operations in Nigeria

> Developing situation record from CLSTR: https://clstr.news/situations/illegal-oil-refining-operations-in-nigeria
> Updated: 2026-11-03T16:16:32.000Z. Sources: 21. Developments: 2.

Authorities in Nigeria have conducted operations targeting unauthorized petroleum refining activities in different states.

In Kano State, the Nigeria Security and Civil Defence Corps (NSCDC) raided an illegal diesel refining site in Panisau, Ungogo Local Government Area. The operation resulted in the arrest of five suspects who are allegedly involved in operating an unregistered petroleum and gas business. State Commandant Mohammed Hassan Agalama stated the raid was part of efforts to combat economic sabotage.

In Ogun State, the Economic and Financial Crimes Commission (EFCC) uncovered an illegal oil refinery in the Ogere area. The facility, which was allegedly operated by Chinese nationals, was discovered on October 31, 2026, following intelligence regarding illegal sludge oil refining. While the site was deserted upon arrival, investigators found waste products and underground tanks containing substances suspected to be Automotive Gas Oil (AGO), commonly known as diesel.

Preliminary findings suggest operators sourced black sludge from Warri in Delta State and Port Harcourt in Rivers State to produce diesel for the Nigerian market. The process reportedly involved subjecting the sludge to intense heat and passing it through chambers and filters. Security personnel at the site stated that the Chinese operators had not disclosed their identities or the name of the company. The EFCC has taken control of the premises as investigations continue to establish ownership and the full extent of the illegal activities.

## Claims

- The EFCC uncovered an illegal oil refinery in the Ogere area of Ogun State. (reported by 3 sources)
- The refinery is allegedly operated by Chinese nationals. (reported by 3 sources)
- The facility was discovered on October 31, 2026. (reported by 3 sources)
- The refinery was deserted when EFCC operatives arrived. (reported by 3 sources)
- Two underground tanks contained substances suspected to be Automotive Gas Oil (diesel). (reported by 3 sources)
- Sludge oil was allegedly transported from Warri, Delta State and Port Harcourt, Rivers State to the facility. (reported by 3 sources)
- Workers at the facility claimed the Chinese operators never disclosed their identities or the company name. (reported by 2 sources)

## Timeline

### 2026-11-03: EFCC uncovers illegal oil refinery in Ogun State

The EFCC has uncovered an illegal oil refinery, allegedly operated by Chinese nationals, in Ogun State, Nigeria, where sludge oil was reportedly processed into diesel.

16 sources. https://clstr.news/cluster/efcc-uncovers-illegal-oil-refinery-in-ogun-state

### 2026-10-30: Kano security forces uncover illegal diesel refinery

The NSCDC has busted an illegal diesel refining site in Kano State, Nigeria, arresting five suspects for allegedly operating an unregistered petroleum business.

7 sources. https://clstr.news/cluster/kano-security-forces-uncover-illegal-diesel-refinery

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Cite as: Illegal oil refining operations in Nigeria. CLSTR, https://clstr.news/situations/illegal-oil-refining-operations-in-nigeria