Falana: Obasanjo’s Refinery Sale Blocked By Yar’Adua Over Lack Of Due Process

Falana criticizes Obasanjo’s refinery sales for breaching due process, praises Yar’Adua for canceling the deals, and urges unions to resist improper privatization efforts.

Human rights lawyer Femi Falana has revealed that former President Umaru Musa Yar’Adua nullified the sale of the Port Harcourt and Kaduna refineries due to irregularities in the privatization process initiated by his predecessor, Olusegun Obasanjo.

Falana’s statement came after Obasanjo disclosed that in 2007, Aliko Dangote’s consortium had offered $750 million to manage the two refineries. However, Yar’Adua rejected the deal, citing non-compliance with proper procedures and national interest.

Obasanjo’s Refinery Privatization Moves

During his tenure, Obasanjo sold a 51% stake in the Port Harcourt refinery to Bluestar Oil for $561 million. Bluestar Oil was a consortium that included Dangote Oil, Zenon Oil, and Transcorp. Similarly, 51% of the Kaduna Refinery was sold for $160 million.

Falana emphasized that these sales were conducted without adhering to the Privatisation and Commercialisation Act, which designates the Vice President as the chairman of the National Council on Privatisation (NCP). Obasanjo allegedly bypassed then-Vice President Atiku Abubakar to oversee the privatization process.

Resistance from Unions and Yar’Adua’s Intervention

The deals sparked backlash from major oil industry unions, NUPENG and PENGASSAN, which accused the administration of conflict of interest and undervaluation of assets. The unions noted that the shares sold for $516 million were valued at $5 billion.

In June 2007, both unions launched a four-day strike that nearly shut down the Nigerian economy. The strike ended after assurances that the privatization would be investigated. Upon completing the investigation, President Yar’Adua canceled the refinery sales, which were deemed contrary to the law and national interest.

Falana’s Call to Action

Falana praised the unions for their role in safeguarding national assets and urged them to continue opposing privatization attempts that do not align with Nigeria’s interest. He further recommended that individuals interested in refining should establish their facilities, citing Dangote Group as an example.