NIGERIA – Human rights lawyer Femi Falana (SAN) has attributed the cancellation of a Public-Private Partnership (PPP) arrangement for the management of Nigeria’s Port Harcourt, Warri, and Kaduna refineries under former President Umaru Musa Yar’Adua to questionable circumstances srrounding the deal initiated by ex-President Olusegun Obasanjo in 2007.
In a statement on behalf of the Alliance on Surviving COVID and Beyond (ASCAB), Falana criticized Obasanjo for allegedly sidelining Vice President Atiku Abubakar, chairman of the National Council on Privatisation (NCP), and breaching the Privatisation and Commercialisation Act. He stated that the sales lacked transparency and were carried out in the final days of Obasanjo’s administration.
Falana highlighted the sale of a 51% stake in the Port Harcourt refinery for $561 million and another 51% stake in the Kaduna refinery for $160 million to Bluestar Oil, a consortium that included Dangote Oil, Zenon Oil, and Transcorp. Obasanjo was alleged to have acquired shares in Transcorp through “blind trust,” raising concerns about conflict of interest.
Oil industry unions, including NUPENG and PENGASSAN, opposed the sales, citing the lack of due process and alleging that the nation had been shortchanged. The unions argued that the shares sold for $561 million were valued at $5 billion. A four-day nationwide strike ensued in June 2007, nearly paralyzing the economy.
Following investigations, President Yar’Adua annulled the deals, a decision that was not legally contested. Falana emphasized that the cancellation was in line with the law and in the nation’s interest.
Obasanjo, in a recent statement, expressed skepticism about claims by the Nigerian National Petroleum Company Limited (NNPCL) that the refineries had been rehabilitated. He recounted failed efforts during his administration to involve Shell in running the refineries and reflected on the challenges of corruption and poor maintenance that plagued them.
The NNPCL responded by inviting Obasanjo to inspect the refineries, citing significant progress under its new private-sector-driven model. The company highlighted ongoing efforts to transform the energy sector, including comprehensive overhauls of the Port Harcourt and Kaduna refineries.
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NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, praised the leadership of President Bola Ahmed Tinubu and NNPCL GCEO Mele Kyari for their transformative policies. He reassured Nigerians of the company’s commitment to ensuring energy security and delivering sustainable value.
Falana, meanwhile, urged oil unions to remain vigilant and resist privatization efforts that undermine national interest, suggesting that investors establish their own refineries rather than acquiring public assets.
By Damilola Adeleke|January 4, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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