NMDPRA finds illegal refinery with 90,000-litre tank in Ogun

The Nigerian Midstream and Downstream Petroleum Regulatory Authority said on Wednesday that an illegal refinery found in Ogere Remo, Ikenne Local Government Area of Ogun State, was using over three hectares of land. It had an underground storage tank that can hold more than 90,000 litres of fuel.

Dr Atilola Akinyemi, the State Coordinator of NMDPRA, shared this information during a joint inspection with officials from the Economic and Financial Crimes Commission.

Akinyemi said, "We received information about this operation, and we realised that it was important for us to be here personally. This kind of discovery cannot be made through ordinary monitoring alone; it requires intelligence gathering. As the Zonal Director of the EFCC explained, intelligence was instrumental in uncovering this operation. We need more of such efforts."

He described the facility as very crude and completely illegal. Akinyemi said, "This is not a refinery by any standard. I want you to understand that this facility does not have a permit from any regulatory authority, and its operations are unknown to the relevant authorities."

He compared the operation to the illegal refining activities that took place in the Niger Delta in the 1990s and early 2000s. He asked, "Where do they source their feedstock?"

The facility had underground tanks that can hold more than 90,000 litres. It also had locally made tanks, separation silos, underground heating systems, and hydrants for cooling.

Akinyemi noted that the operators seemed to have knowledge of what they were doing. They designed the facility to look like a standard refinery while ignoring the rules.

He warned against calling the recovered products diesel, also known as Automotive Gas Oil. He said, "Laboratory tests are necessary to determine their actual composition."

Akinyemi cautioned that selling these products could harm vehicles and engines. He confirmed that the products and materials taken from the site have been seized and placed under the Federal Government's control for testing.

He stressed that the authority will not accept illegal refining in Ogun State. He said that they will keep working with law enforcement to find other illegal facilities.

Akinyemi explained, "We can identify the various components of the operation, including the areas where they receive their feedstock. The underground storage facility behind the site is estimated to have a capacity of more than 90,000 litres."

He added, "We have also seen how they carry out the heating and processing of the materials using underground heating systems and the water hydrants installed for cooling."

He stated that the people behind the operation are not ordinary individuals. They seem to have technical skills and designed the facility to avoid government regulations.

He noted, "We have seen locally fabricated storage tanks, silos for separation, and other equipment. Everything about the setup suggests that they attempted to replicate the operations of a standard refinery but failed to meet the required standards."

Meanwhile, Bawa Usman Kaltungo, the EFCC Zonal Director for Lagos, said the commission acted on tips from a Nigerian whistleblower. He said they watched the site to confirm the information before carrying out a sting operation.

Kaltungo said, "A Nigerian who responded to that call provided us with information about an illegal mining site. We informed the Chairman, who directed us to conduct surveillance first. We carried out the surveillance and confirmed that the information was accurate."

He continued, "Following that, the Chairman directed us to conduct a sting operation, which we successfully carried out. It was during that operation that we discovered this facility. We are also on the verge of discovering another location."

Kaltungo expressed worry about the immigration status of some foreign nationals arrested. Some could not show passports, and others had visas that expired three months ago.

He said the commission is looking into who owns the companies involved. Some of the owners are reportedly based in China.

Mr Gbolahan Latona, the Director of the Department of Proceeds of Crime Management at EFCC, warned that illegal petroleum operations could hurt legitimate businesses in Nigeria's refining industry.

He said the commission will ensure that assets linked to crime are recovered and put to good use according to the law.

Latona mentioned the conversion of Nok University, after it was forfeited to the government, into the Federal University of Applied Sciences, Kachia, as an example.

He said the discovered facility could also follow the same recovery and reuse processes, depending on investigations and legal steps.

Latona warned that illegal operators should not harm investments from legal players in the petroleum sector, especially major local refining projects.

He assured that suspects will face prosecution if there is enough evidence against them. He added that the commission will also check into those financing the operation from outside Nigeria.