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

The facility, which occupied over three hectares of land, was discovered to have locally fabricated storage tanks, separation silos, underground heating systems and cooling facilities.

The State Coordinator of NMDPRA, Dr Atilola Akinyemi, disclosed this on Wednesday during a joint inspection of the facility by officials of the authority and the Economic and Financial Crimes Commission (EFCC).

NMDPRA questions refinery operations

Mr Akinyemi described the facility as crude and completely illegal, stressing that it had no operating permit from any regulatory authority.

He said intelligence gathering was instrumental in uncovering the operation, adding that the discovery showed the need for stronger collaboration between regulatory and law enforcement agencies.

The coordinator explained that the operators appeared to possess technical knowledge and had designed the facility to imitate a standard refinery while operating outside established regulations.

He also questioned where the operators sourced the materials used as feedstock for the refining process.

Mr Akinyemi, however, cautioned against identifying the recovered products as diesel, also known as Automotive Gas Oil (AGO), without laboratory analysis.

He warned that allowing unverified petroleum products into the market could expose vehicles and automobile engines to serious damage.

He added that all recovered products and materials had been confiscated and placed under the custody of the Federal Government pending laboratory tests and further verification.

EFCC traces operation to whistleblower’s report

The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the commission uncovered the facility through information provided by a Nigerian whistleblower.

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

Mr Kaltungo said the commission was investigating the ownership structure of companies allegedly connected to the operation, adding that some of the ultimate owners were believed to be based in China.

He also raised concerns over the immigration status of some foreign nationals arrested in connection with the investigation, saying some could not produce passports, while others reportedly had visas that expired about three months earlier.

The EFCC director disclosed that the commission was close to uncovering another location linked to similar activities.

EFCC warns against economic sabotage

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

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

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

He said the Ogun facility could also be considered for appropriate recovery and reuse, subject to the outcome of investigations and the necessary legal processes.

The EFCC assured that suspects would face prosecution if sufficient evidence was established against them, adding that investigations would extend to individuals and interests allegedly financing the operation from outside Nigeria.