The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that an illegal refinery uncovered at Ogere Remo in Ikenne Local Government Area of Ogun State operated with an underground storage tank capable of holding more than 90,000 litres of petroleum products.

The facility, which covered more than three hectares of land, was discovered through an intelligence-led operation involving the Economic and Financial Crimes Commission (EFCC) and the NMDPRA.

The State Coordinator of the NMDPRA, Dr Atilola Akinyemi, made the disclosure on Wednesday, November 4, 2026, during a joint inspection of the facility by officials of both agencies.

According to him, the facility was operating illegally without approval from any regulatory authority and was equipped with underground storage tanks, locally fabricated tanks, separation silos, underground heating systems and water hydrants for cooling.

Akinyemi described the operation as crude and said its equipment appeared to have been deliberately designed to imitate the operations of a standard refinery while circumventing established regulations.

He, however, cautioned against identifying the recovered products as diesel, also known as Automotive Gas Oil (AGO), explaining that laboratory tests would be required to establish their actual composition.

He warned that allowing the unverified products into the market could pose serious risks to vehicles and automobile engines.

The NMDPRA coordinator added that all recovered products and materials had been confiscated and placed under the custody of the Federal Government pending laboratory analysis and further verification.

Meanwhile, the EFCC Zonal Director for Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery followed information provided by a Nigerian whistleblower.

He explained that the commission first conducted surveillance to verify the information before launching a sting operation that led to the discovery of the facility.

Kaltungo added that the commission was close to uncovering another location believed to be connected to similar activities.

He also raised concerns about the immigration status of some foreign nationals arrested in connection with the operation, revealing that some could not produce their passports while others allegedly had visas that had expired about three months earlier.

The EFCC official further disclosed that investigations were ongoing into the ownership structure of companies allegedly linked to the operation, with some of their ultimate owners reportedly based in China.

Also speaking, the Director of the EFCC's Department of Proceeds of Crime Management, Gbolahan Latona, warned that illegal petroleum operations could undermine legitimate investments in Nigeria's refining sector and deprive the country of revenue.

He said the commission would pursue the recovery of assets established to be proceeds of crime and ensure they were put to productive use in accordance with the law.

Latona cited the conversion of Nok University, following its forfeiture to the government, into the Federal University of Applied Sciences, Kachia, as an example of the commission's asset recovery and reuse initiative.

He indicated that the discovered refinery could also be considered for recovery and reuse, depending on the outcome of investigations and the necessary legal processes.

Latona further assured that suspects linked to the operation would face prosecution if sufficient evidence was established, adding that the commission would investigate individuals and interests allegedly financing the activities from outside Nigeria.

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