Oil
Ogun illegal refinery uncovered with underground storage tanks
Regulatory authorities and anti-graft agents have uncovered an unauthorized refining facility spanning over three hectares in Ogun State.
Key points
- The Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Economic and Financial Crimes Commission inspected the site in Ogere Remo.
- Investigators found underground storage infrastructure with a capacity exceeding 90,000 litres.
- Foreign nationals and financing structures connected to the operation are currently under investigation.
What happened
A joint inspection team comprising officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Economic and Financial Crimes Commission discovered an unauthorized petroleum processing site in Ogun State. Punch reported that the operation was situated on more than three hectares of land in Ogere Remo, located within the Ikenne Local Government Area.
Dr Atilola Akinyemi, the state coordinator for the regulatory authority, stated during the visit that the setup lacked permits and operated entirely outside the established regulatory framework. He noted that the site featured underground storage tanks estimated to hold more than 90,000 litres, alongside separation silos and heating systems designed to mimic a standard refining setup. Authorities cautioned that the composition of the recovered liquids requires laboratory testing before any classification can be made.
Investigation and arrests
Bawa Usman Kaltungo, the zonal director for the anti-graft agency in Lagos, explained that the operation followed a tip from a whistleblower under the federal whistleblowing policy. Surveillance teams authenticated the intelligence prior to executing the sting operation. Officials raised concerns regarding the legal status of foreign nationals apprehended at the location, noting expired visas and missing travel documents. Investigators are also examining ownership records linked to entities based in China.
Mr Gbolahan Latona, director of the proceeds of crime management department at the commission, emphasized that illicit processing activities threaten legitimate investments and siphon government revenue. He indicated that assets confirmed to be proceeds of crime could face legal forfeiture and subsequent public reuse.
Why it matters
Unauthorized refining operations present severe hazards to consumer safety, environmental integrity, and lawful market competition within the downstream sector. According to World Bank figures from 2025, fuel exports accounted for 85.9 percent of merchandise exports in Nigeria, underscoring the critical importance of protecting hydrocarbons and petroleum revenues from illicit diversions. For energy investors and regulatory bodies, clamping down on clandestine facilities ensures a level playing field and safeguards official investments in domestic refining infrastructure.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
85.9% of Nigeria’s merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
