Senior Advocate of Nigeria, Femi Falana, has revealed that former President Umaru Yar’Adua reversed the sale of the Port Harcourt Refinery to a consortium led by business magnate Aliko Dangote due to irregularities in the transaction.
In a recent Channels Television interview, former President Olusegun Obasanjo disclosed that in 2007, a consortium offered $750 million to manage the Port Harcourt and Kaduna refineries, but the Nigerian National Petroleum Corporation (NNPC) rejected the proposal. Obasanjo also stated that Shell Petroleum declined to take over the refinery, citing corruption concerns that could hinder operations.
Falana Highlights Irregularities
In a statement on Friday, Falana explained that Yar’Adua’s decision to annul the sale addressed violations of the Privatisation and Commercialisation Act and protected Nigeria’s national interest. He accused Obasanjo of bypassing due process by sidelining then-Vice President Atiku Abubakar, who was legally the chairman of the National Council on Privatisation. Instead, Obasanjo allegedly handled privatisation deals directly.
Falana noted that the consortium involved—Bluestar Oil—comprised Dangote Oil, Zenon Oil, and Transcorp. He also alleged that Obasanjo held significant shares in Transcorp through a “blind trust,” raising concerns about the legality and morality of the transactions.
According to Falana, Obasanjo sold a 51% stake in the Port Harcourt Refinery to Bluestar Oil for $561 million on May 17, 2007, and a similar stake in the Kaduna Refinery for $160 million on May 28, 2007.
Public Outcry and Union Action
The sales faced heavy criticism 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), who claimed the deals undervalued the refineries. For example, the Port Harcourt Refinery, sold for $561 million, was alleged to be worth $5 billion.
In June 2007, the unions staged a four-day strike that almost paralyzed the economy, demanding an investigation. The Federal Government pledged to review the transactions, leading to President Yar’Adua’s annulment of the sales.
Legal and Ethical Implications
Falana stressed that the reversal was never legally challenged, as the deals violated the Privatisation and Commercialisation Act. He commended the unions and Yar’Adua for safeguarding Nigeria’s interests, stating that their actions protected public assets from being sold off unfairly.
