Is that cheap diesel safe? What comes out of an illegal "refinery", simply
This week officials sealed a yard in Ogun that heated oil sludge into something that looked like diesel. Here is why that matters for your generator, truck or bus.

In 30 seconds
- Real diesel is made in a refinery that separates crude oil carefully and removes harmful content.
- Illegal sites heat crude or oil sludge in crude tanks and collect what boils off. It can look like diesel but is not tested.
- Nigeria's downstream regulator warned this week that such a product could put vehicles and engines at serious risk.
- Buy from licensed stations and depots, and keep your receipts.
On Wednesday the fuel regulator and the EFCC sealed a site in Ogun State where oil sludge was being heated into a liquid suspected to be diesel. Read the news story. If you buy diesel for a generator or a vehicle, here is why that should concern you.
How real diesel is made
A refinery heats crude oil inside tall columns. Different parts of the oil turn to vapour at different temperatures and are drawn off at different heights: gas at the top, then petrol, kerosene and diesel, with heavy oils at the bottom. The products are then treated, for example to take out sulphur, and tested against a standard before they are sold.
What an illegal site does
An illegal site skips most of that. It heats crude oil or waste such as sludge in tanks or drums, cools what boils off and collects it. There is no proper control of temperature and no treatment or testing. The result can look and smell like diesel.
At the Ogun site, officials found an underground tank of more than 90,000 litres, heating systems, cooling hydrants and home-made separation tanks. The EFCC says the sludge came from Warri and Port Harcourt. NMDPRA's Ogun coordinator, Dr Atilola Akinyemi, said the final product "may look like diesel to the average person", according to Vanguard. He said the product could not be called diesel until laboratory tests were done.
Why it can harm your engine
Akinyemi warned that if such a product reached the market, "vehicles, automobiles and their engines would be exposed to serious risks", Vanguard reported. Fuel that has not been properly separated or cleaned can carry water, dirt and heavier oils. These can block filters and injectors and leave deposits inside the engine, and they may not burn the way diesel should. The laboratory results for the Ogun product have not been released.
How to protect yourself
- Buy from licensed filling stations or depots, not from roadside sellers or unmarked tankers.
- Be careful when diesel is far cheaper than at nearby stations. Ask why.
- Keep receipts. They help if you need to complain or claim for damage.
- Watch for warning signs after filling: heavy black smoke, poor running, or filters that clog quickly.
- If you suspect bad fuel or an illegal site, report it. The EFCC asked the public to report suspicious activity under its whistleblowing policy.
What it means for you
Diesel runs many Nigerian generators, trucks, buses and farm machines, so a bad batch hits both homes and businesses. A few naira saved on a litre can mean a costly engine repair. Buying from a licensed seller is the simplest protection.
Words to know
- Refinery
- A plant that heats crude oil and separates it into products such as petrol, diesel and kerosene, then treats them to meet standards.
- Sludge oil
- The thick residue left at the bottom of oil tanks, pipelines and ships.
- AGO
- Automotive gas oil, the trade name for diesel.
- NMDPRA
- The regulator that licenses refineries, depots and filling stations and checks fuel quality.
Sources
- Vanguard: NMDPRA warns of risks from Ogun illegal refinery (Nov 2026)
- Daily Trust: NMDPRA, EFCC seal off Chinese-linked illegal refinery in Ogun (4 Nov 2026)
- BusinessDay: NMDPRA, EFCC seal illegal Ogun refinery with 90,000-litre underground tank (5 Nov 2026)
- Nairametrics: EFCC busts Chinese-run illegal refinery in Ogun (3 Nov 2026)
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