Yar’adua Reversed Refinery Sales Over Illegality – Falana

• Femi Falana revealed that late President Yar’Adua nullified the sale of Port Harcourt and Kaduna refineries due to widespread protests
• The unions argued the sales lacked transparency and undervalued the refineries, leading to a nationwide strike that prompted an investigation

Renowned human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has revealed why late President Umar Yar’adua nullified the sale of Port Harcourt and Kaduna refineries in 2007.

The refineries were sold during the final days of former President Olusegun Obasanjo’s administration.

In a statement issued on Friday under the Alliance on Surviving COVID and Beyond (ASCAB), Falana explained that Yar’adua’s decision was prompted by protests from oil industry workers and widespread criticism of the deal’s legitimacy.

He noted that a 51% stake in the Port Harcourt refinery was sold to Bluestar Oil for $561 million, while the Kaduna refinery was sold for $160 million.

Bluestar Oil, a consortium comprising Dangote Oil, Zenon Oil, and Transcorp, faced opposition from several interest groups.

Critics raised concerns about the “legal validity and moral propriety” of the sales, particularly because they occurred at the twilight of Obasanjo’s administration.

Falana highlighted the strong resistance from oil workers’ unions – the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

These unions argued that the privatisation process lacked transparency, involved conflicts of interest, and undervalued the refineries, which they believed were worth $5 billion.

Their discontent led to a four-day nationwide strike in June 2007, significantly disrupting the economy.

The strike was suspended after the federal government assured the unions that the transactions would be reviewed. Convinced that the deals were not in Nigeria’s best interest, Yar’adua ultimately cancelled the sales.

Falana urged NUPENG and PENGASSAN to remain steadfast in their advocacy against the privatisation of refineries without due consideration for national interests.

He advised those supporting privatisation to follow the example of the Dangote Group by constructing their own refineries rather than attempting to acquire public assets.