Human rights lawyer Femi Falana has explained why former President Umaru Yar’Adua reversed the sale of the Port Harcourt refinery to a consortium led by Dangote.
Falana stated that the move was necessary to address legal and ethical violations surrounding the transaction and to safeguard Nigeria’s national interest.
In a statement, Falana outlined that the Privatisation and Commercialisation Act mandates the Vice President to chair the National Council on Privatisation (NCP), which oversees the sale of public enterprises. However, he alleged that former President Olusegun Obasanjo bypassed this legal provision by sidelining Vice President Atiku Abubakar and taking control of the privatisation process himself.
Falana revealed that, on May 17, 2007, Obasanjo sold a 51% stake in the Port Harcourt refinery to Bluestar Oil for $561 million. Similarly, on May 28, 2007, Obasanjo sold 51% of Kaduna Refinery’s shares to the same company for $160 million.
These deals faced strong opposition from stakeholders, including the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). According to Falana, the unions raised concerns over due process and alleged that the transactions significantly undervalued the assets.
“The shares acquired in the Port Harcourt refinery for $561 million were reportedly worth $5 billion,” Falana stated, emphasizing that the deals shortchanged the country.
He added that the reversal of the privatisation was never challenged in court, as the transactions violated the Privatisation and Commercialisation Act.
Falana praised the efforts of NUPENG and PENGASSAN in defending the national interest and urged them to remain vigilant as calls for the privatisation of Nigeria’s refineries resurface.
His statement highlights the broader debate on privatisation in Nigeria, with many stressing the need for transparency, fairness, and adherence to due process in managing public assets.
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