Prominent human rights lawyer and senior advocate, Femi Falana, has explained why former President Umaru Yar’Adua reversed the sale of the Port Harcourt refinery to a consortium led by Dangote Oil.
Falana described the cancellation as a crucial move to address the legal and ethical violations surrounding the deal and to safeguard Nigeria’s national interest.
In a detailed statement, Falana clarified that, according to the Privatisation and Commercialisation Act, the Vice President is the chairman of the National Council on Privatisation (NCP), which is responsible for overseeing the privatisation of public enterprises.
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However, he alleged that former President Olusegun Obasanjo circumvented this legal provision by excluding then-Vice President Atiku Abubakar and directly managing the privatisation of several state-owned enterprises.
“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,” Falana revealed.
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 pointed out that the deals attracted strong 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). The unions expressed concerns about the lack of due process and accused the government of shortchanging the country.
“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,” Falana noted.
The unions called off their strike after receiving assurances from the federal government that the deals would be fully investigated. Following the inquiry, President Yar’Adua annulled the privatisation of both the Port Harcourt and Kaduna refineries.
“It is on record that the cancellation of the privatisation was not challenged in any court as it was carried out contrary to the letter and spirit of the Privatisation and Commercialisation Act,” Falana stated.
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