The Nigerian government has intensified its crackdown on illegal petroleum operations after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) shut down an unauthorised refinery discovered in Ogere Remo, Ogun State.

The facility, which was allegedly linked to Chinese nationals, was sealed on Wednesday following a joint inspection by officials of both agencies. It was reportedly operating on a land spanning more than three hectares in Ikenne Local Government Area.

Investigators discovered several pieces of equipment, including an underground storage tank with an estimated capacity of over 90,000 litres, locally constructed tanks, separation silos, underground heating systems and cooling facilities.

Speaking during the inspection, the NMDPRA’s Ogun State Coordinator, Atilola Akinyemi, described the operation as illegal and far below the standards required for a legitimate refinery.

He said the facility had no approval from any regulatory agency, adding that its operators appeared to have deliberately constructed the equipment to imitate a standard refinery while avoiding government regulations.

Akinyemi also warned against identifying the petroleum products recovered from the site as diesel, explaining that laboratory analysis would be required to establish their actual composition.

The EFCC had earlier announced the discovery of the facility on October 31, following intelligence provided by a Nigerian whistleblower. Preliminary findings suggested that the operators transported sludge oil from Warri in Delta State and Port Harcourt in Rivers State for processing.

Bawa Usman Kaltungo, EFCC Zonal Director for Lagos Zonal Directorate 2, said the commission first placed the location under surveillance before moving in to confirm the allegations.

He disclosed that investigators were examining the ownership of companies connected to the operation, particularly individuals believed to be based in China. He also revealed that the commission was close to identifying another suspected location.

Meanwhile, Gbolahan Latona, Director of the EFCC’s Department of Proceeds of Crime Management, warned that illegal refining activities could discourage genuine investors and undermine major investments in Nigeria’s petroleum sector.

Latona said the government could consider recovering and putting the facility to appropriate use, subject to the outcome of investigations and relevant legal procedures.

The EFCC further maintained that those found responsible would face prosecution if sufficient evidence was established, including individuals suspected of financing the operation from outside Nigeria.