Prominent human rights lawyer and senior advocate, Femi Falana, has revealed why former President Umaru Yar’Adua cancelled the sale of the Port Harcourt refinery to a consortium led by Dangote Oil.
Falana described the reversal as a critical step to address the legal and ethical breaches surrounding the transaction and to protect Nigeria’s national interest.
In a detailed statement, Falana explained that under the Privatisation and Commercialisation Act, the Vice President is the chairman of the National Council on Privatisation (NCP), the body responsible for overseeing the privatisation of public enterprises.
However, he alleged that former President Olusegun Obasanjo bypassed this legal requirement by sidelining 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 highlighted that the deals drew sharp 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 raised concerns over due process and alleged that the country had been shortchanged.
“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 ended their strike after receiving assurances from the federal government that the deals would be thoroughly investigated. Following the probe, 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.
He further commended the role of NUPENG and PENGASSAN in advocating for national interest and called on them to remain vigilant amid renewed calls for the privatisation of Nigeria’s refineries.
“The Alliance on Surviving Covid and Beyond (ASCAB) hereby calls on NUPENG and PENGASSAN to intensify their historical struggle aimed at as a counterpoise to the renewed campaign for the privatisation of the nation’s refineries. Those who are awaiting the privatisation of the refineries in a manner at variance with the national interest should be advised to set up their own refineries like the Dangote Group,” Falana urged.
Falana’s statement underscores the ongoing debate over privatisation in Nigeria, with advocates like ASCAB emphasizing the need for transparency and adherence to due process in managing the country’s public assets.
WARNING: If You Are Not 18+, Don’t Click The Link Below 👇🫣
https://headacheaim.com/kx6iepv2qm?key=6c14bd1d68e1eba721851f19778f5efe
https://zireemilsoude.net/4/5193489
Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it.
Drop your comment in the section below, and don’t forget to share the post.
Never Miss A Single News Or Gists, Kindly Join Us On WhatsApp Channel:
https://whatsapp.com/channel/0029Vad8g81Eawdsio6INn3B
Telegram Channel:
https://t.me/gistsmateNG
