Yar’Adua rejected refinery sale over lack of due process – Falana
By Kunle Sanni
Prominent human rights lawyer, Femi Falana, has disclosed that former President Umaru Musa Yar’Adua rejected the sale of the Port Harcourt and Kaduna refineries in 2007 due to irregularities and the failure of his predecessor, Olusegun Obasanjo, to follow due process.
Falana made this revelation in response to recent comments by Obasanjo, who alleged that Yar’Adua declined a $750 million offer from Aliko Dangote, chairman of the Dangote Group, to manage the refineries.
In a statement released on Friday, Falana alleged that Obasanjo’s administration sold a 51% stake in the Port Harcourt refinery to Bluestar Oil, a consortium including Dangote Oil, Zenon Oil, and Transcorp, for $561 million.
Similarly, 51% of the Kaduna refinery was sold to Bluestar Oil for $160 million.
Falana criticized Obasanjo for bypassing his Vice President, Atiku Abubakar, in overseeing the transactions, contrary to the stipulations of the Privatisation and Commercialisation Act.
“Under the Act, the Vice President serves as the chairman of the National Council on Privatisation (NCP), which is responsible for supervising the privatisation of public enterprises. However, Obasanjo ignored this structure and personally managed the sales,” Falana said.
He further alleged that the transactions, which were concluded in the final days of Obasanjo’s administration, drew widespread criticism from interest groups, including trade unions, due to concerns of conflict of interest.
According to Falana, Obasanjo’s alleged acquisition of significant shares in Transcorp through a “blind trust” raised further questions about the integrity of the deals.
The sales provoked a strong backlash from oil industry unions, 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 accused the administration of undervaluing the refineries, claiming that the Port Harcourt refinery—sold for $561 million—was worth $5 billion.
In June 2007, the unions embarked on a four-day nationwide strike that paralyzed the economy. The strike was called off after the Yar’Adua administration pledged to investigate the transactions.
Following the investigation, Yar’Adua annulled the sale of the Port Harcourt and Kaduna refineries.
“The cancellation was never challenged in court because it was evident that the sales violated the law,” Falana noted.
Falana, now the chairman of the Alliance on Surviving Covid-19 and Beyond (ASCAB), has urged NUPENG and PENGASSAN to remain steadfast in opposing renewed calls for the privatisation of Nigeria’s refineries.
He argued that individuals interested in acquiring public refineries should follow the example of the Dangote Group by constructing their own facilities instead of purchasing national assets under dubious terms.
“The unions’ historic struggle to protect national interests remains vital in safeguarding Nigeria’s economic sovereignty,” Falana concluded.
