Falana Reveals Why Yar’Adua Stopped Sale Of Port Harcourt Refinery To Dangote

Human rights lawyer Femi Falana has disclosed that the late former Nigerian President, Umaru Yar’Adua, canceled the sale of the Port Harcourt refinery to a Dangote Oil-led consortium to safeguard Nigeria’s national interests.

In a statement issued on Friday, Falana explained that the cancellation was an essential step in addressing the legal and ethical issues surrounding the transaction.

The Senior Advocate of Nigeria pointed out that under the Privatisation and Commercialisation Act, the Vice President is supposed to chair the National Council on Privatisation (NCP), the body tasked with overseeing the privatization of public enterprises.

Falana accused former President Olusegun Obasanjo of bypassing this legal provision by excluding then-Vice President Atiku Abubakar and directly managing the privatization of various state-owned companies.

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 deal on May 28, 2007, he sold 51% of the Kaduna Refinery to Bluestar Oil for $160 million.”

Falana highlighted that these deals were met with strong opposition 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), who argued that Nigeria had been shortchanged.

Following a probe, President Yar’Adua annulled the privatization of the Port Harcourt and Kaduna refineries and assured the unions that the government would thoroughly investigate the transactions.

Falana commended NUPENG and PENGASSAN for their advocacy in protecting national interests and urged them to stay vigilant as calls to privatize Nigeria’s refineries resurface.

He said, “The unions also argued that the shares purchased in the Port Harcourt refinery for $516 million were actually worth US$5 billion. Believing the deals were against the national interest, the unions went on a 4-day strike in June 2007, which almost brought Nigeria’s economy to a halt.

“It is important to note that the cancellation of the privatization was never challenged in court, as it violated both the letter and spirit of the Privatisation and Commercialisation Act.

“The Alliance on Surviving Covid and Beyond (ASCAB) urges NUPENG and PENGASSAN to intensify their efforts in opposing the renewed push for privatizing the nation’s refineries. Those pushing for privatization that undermines national interest should consider establishing their own refineries, like the Dangote Group.”