NMDPRA and EFCC officials inspect an alleged illegal petroleum-processing facility in Ogere-Remo, Ogun State
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have sealed an alleged illegal refinery in Ogere-Remo, Ikenne Local Government Area of Ogun State, after uncovering a petroleum-processing facility occupying more than three hectares of land.
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The operation exposed underground storage tanks with an estimated capacity exceeding 90,000 litres, alongside heating systems, cooling facilities, locally fabricated tanks and equipment believed to have been used to process petroleum waste products.
The joint inspection followed intelligence received through a whistleblower, which prompted an investigation into the facility's operations. Authorities said the installation operated without the required permits from relevant regulatory agencies.
The discovery raises concerns about the use of land for unregulated industrial activities, the monitoring of petroleum-processing facilities and the potential risks such operations pose to surrounding communities and legitimate businesses.
Authorities Uncover Unlicensed Petroleum-Processing Facility
During the inspection, Ogun State NMDPRA Coordinator, Dr Atilola Akinyemi, described the facility as an illegal installation that had been deliberately designed to operate outside the country's petroleum regulatory framework.
The site reportedly contained sections for receiving feedstock, storage, heating, processing and cooling. Investigators also discovered underground systems believed to have been used for heating and processing sludge oil and other waste products from refining.
Akinyemi said the facility had no permit from any regulatory authority and that its operations were unknown to the relevant agencies.
He also cautioned against identifying the recovered products as Automotive Gas Oil (AGO), commonly known as diesel, without laboratory tests to establish their chemical composition and suitability for use.
The regulator warned that distributing adulterated or unverified petroleum products could expose vehicles and engines to damage.
Authorities have confiscated the recovered petroleum products and materials pending further investigation.
EFCC Investigates Ownership and Alleged Foreign Links
The EFCC said its investigation was initiated following a whistleblower's report and subsequent intelligence verification.
The commission's Lagos Zonal Directorate 2 Director, Bawa Usman Kaltungo, said the facility appeared to have operated for an extended period, given the infrastructure and processing arrangements discovered at the site.
He added that investigators were examining its ownership structure, with preliminary findings pointing towards ultimate beneficial owners based in China.
The EFCC also linked the investigation to concerns about other alleged illegal activities involving foreign nationals in the Ogere axis. The commission cited the arrest of 14 Chinese nationals over suspected illegal lithium processing in the area the previous week.
However, the investigation into the refinery's ownership and operations remains ongoing. Authorities have indicated that suspects will face prosecution if sufficient evidence is established.
Implications for Industrial Land Use and Property Safety
The discovery highlights the importance of effective monitoring of industrial land use, particularly where facilities handle petroleum products and other potentially hazardous materials.
Industrial developments require appropriate approvals, technical standards and safety arrangements to protect workers, neighbouring properties and surrounding communities. Underground storage systems and petroleum-processing equipment also require proper oversight to reduce the risks associated with leaks, fires and other industrial incidents.
For property developers and investors, the case reinforces the importance of verifying land-use approvals, environmental requirements and operating permits before acquiring or developing industrial property.
Unregulated industrial operations can also create risks for nearby businesses and communities, particularly where authorities cannot establish what materials are being processed or how waste products are being handled.
The discovery does not establish that the facility caused environmental damage or affected neighbouring properties. However, it demonstrates the need for regulators to identify and address unauthorised industrial operations before they create wider safety and environmental problems.
Enforcement Could Protect Legitimate Energy Investments
The EFCC's Director of Proceeds of Crime Management, Gbolahan Latona, said illegal petroleum operations could undermine legitimate investments in Nigeria's refining industry.
He cited the potential impact on established operators, including the Dangote Refinery, arguing that unregulated activities could harm consumers and distort competition in the petroleum market.
The commission said it would pursue the investigation, with prosecution and possible forfeiture of proceeds of crime subject to the establishment of sufficient evidence and a court conviction.
The operation highlights the importance of coordination between petroleum regulators and financial crime investigators in addressing illegal activities across the energy value chain.
For Ogun State and other locations experiencing industrial expansion, sustained enforcement will be important not only for protecting legitimate investment but also for ensuring that industrial activities comply with land-use, safety and environmental requirements.
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