Legal luminary and human rights activist, Mr Femi Falana (SAN), has revealed why the former late President Umaru Yar’ Adua cancelled the sale of the Port Harcourt refinery to a consortium led by Dangote Oil.
Falana also described the reversal as a critical step to address the legal and ethical breaches surrounding the transaction and to protect Nigeria’s national interest.
In a detailed statement made available on Friday, Falana explained that under the Privatisation and Commercialisation Act, the Vice President is the chairman of the National Council on Privatisation (NCP), the body responsible for overseeing the privatisation of public enterprises.
Falana however alleged that former President Olusegun Obasanjo bypassed this legal requirement by sidelining the then-Vice President Atiku Abubakar and directly managing the privatisation of several state-owned enterprises.
He said, “On May 17, 2007, President Obasanjo sold a 51% stake in the Port Harcourt refinery to Bluestar Oil for US$561 million. In another transaction that took place on May 28, 2007, President Obasanjo sold 51% shares in Kaduna Refinery to Bluestar Oil for $160 million.’
Bluestar Oil, a consortium comprising Dangote Oil, Zenon Oil, and Transcorp, faced immediate scrutiny for the transactions. Critics pointed out potential conflicts of interest, as Obasanjo reportedly held significant shares in Transcorp through a “blind trust.” The sales, concluded just days before the end of Obasanjo’s administration, were widely viewed as rushed and lacking transparency.
Falana highlighted that the deals drew sharp criticism from key stakeholders, including the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
He dded that the unions raised concerns over due process and alleged that the country had been shortchanged.
Falana said, “They also alleged that the nation had been shortchanged as the shares acquired in the Port Harcourt refinery for $516 million were worth US$5 billion. Convinced that the deals were not in the national interest, both unions proceeded on a 4-day strike that almost paralysed the Nigerian economy in June 2007.”
The Senior Advocate further disclosed that the unions ended their strike after receiving assurances from the federal government that the deals would be thoroughly investigated.
Falana said that the late President Yar’Adua set up a probe panel on the sale of the refineries and later annulled the privatisation of both the Port Harcourt and Kaduna refineries.
He said, “It is on record that the cancellation of the privatisation was not challenged in any court on the grounds that the sale was carried out contrary to the letter and spirit of the Privatisation and Commercialisation Act.
He further commended the role of NUPENG and PENGASSAN in advocating for national interest and called on them to remain vigilant amid renewed calls for the privatisation of Nigeria’s refineries.
Falana then said, “The Alliance on Surviving Covid and Beyond (ASCAB) hereby calls on NUPENG and PENGASSAN to intensify their historical struggle aimed at as a counterpoise to the renewed campaign for the privatisation of the nation’s refineries. Those who are awaiting the privatisation of the refineries in a manner at variance with the national interest should be advised to set up their own refineries like the Dangote Group.”
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