Authorities Uncover Illegal Oil Refinery in Ogun State with Large Underground Tank

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced on Wednesday that an illegal oil refinery was found in Ogere Remo, Ogun State. The facility covers over three hectares of land and has an underground storage tank that can hold more than 90,000 litres of oil.

Dr. Atilola Akinyemi, the State Coordinator of NMDPRA, shared details during a joint inspection with the Economic and Financial Crimes Commission (EFCC). He noted that discovering such operations requires more than regular monitoring; it needs intelligence gathering. The EFCC’s Zonal Director emphasized that information from a whistleblower led to the operation’s discovery.

Akinyemi described the facility as crude and completely illegal, lacking any permits from regulatory authorities. He compared it to illegal refining activities seen in Nigeria’s Niger Delta region in the past. He raised concerns about the source of the raw materials used in the refinery.

The facility was equipped with locally made tanks, separation silos, underground heating systems, and cooling hydrants. Akinyemi warned that the products from this operation should not be considered diesel until laboratory tests confirm their composition. He stressed that allowing these products into the market could harm vehicles and engines.

All materials recovered from the site have been confiscated and are under the authority of the Federal Government for further analysis. Akinyemi stated that the NMDPRA will not tolerate illegal refining in Ogun State and will work with law enforcement to find similar operations.

The EFCC’s Lagos Zonal Director, Bawa Usman Kaltungo, explained that the commission conducted surveillance based on the whistleblower’s tip before launching a sting operation that led to the discovery of the illegal refinery. He expressed concern about the immigration status of some foreign nationals arrested during the operation.

Additionally, the EFCC’s Director of Proceeds of Crime Management, Gbolahan Latona, warned that illegal oil operations threaten legitimate investments in Nigeria’s refining sector. He assured that any assets linked to criminal activities would be recovered and used productively, and that suspects would face prosecution if evidence is found against them.