Senior Advocate of Nigeria, Femi Falana, has revealed that late President Umaru Yar’Adua annulled the sale of the Port Harcourt Refinery to a consortium led by Aliko Dangote due to alleged violations of due process
Former President Olusegun Obasanjo recently disclosed during an interview on Channels Television that in 2007, a consortium offered $750 million to manage the Port Harcourt and Kaduna refineries. However, the Nigerian National Petroleum Corporation rejected the proposal. Obasanjo also stated that Shell Petroleum declined to take over the refinery, citing concerns about corruption impeding its operations.
In a statement on Friday, Falana explained that the reversal of the sale was necessary to address ethical and legal breaches and to protect Nigeria’s national interest. He highlighted that under the Privatisation and Commercialisation Act, the Vice President chairs the National Council on Privatisation, which oversees the privatisation of public enterprises. However, Obasanjo allegedly bypassed this process by sidelining then-Vice President Atiku Abubakar and handling privatisation deals personally.
Falana accused Obasanjo of selling 51% of the Port Harcourt Refinery to Bluestar Oil—a consortium comprising Dangote Oil, Zenon Oil, and Transcorp—for $561 million on May 17, 2007. On May 28, 2007, 51% of the Kaduna Refinery was also sold to the consortium for $160 million. He alleged that Obasanjo had significant shares in Transcorp through “blind trust,” raising questions about the transactions’ legality.
Criticism of these sales came 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). They argued that the refineries were grossly undervalued, citing the Port Harcourt Refinery’s estimated worth of $5 billion compared to the $561 million paid.
The backlash led to a nationwide strike in June 2007, nearly crippling the economy. The Federal Government eventually assured stakeholders that the transactions would be reviewed, prompting Yar’Adua to annul the deals.
Falana emphasized that the annulment was never legally contested because the sales violated the Privatisation and Commercialisation Act. He praised the unions’ actions and Yar’Adua’s decision for safeguarding Nigeria’s interests.
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