Human rights lawyer Femi Falana (SAN) has criticized former President Olusegun Obasanjo’s handling of the Public-Private Partnership (PPP) arrangements for managing Nigeria’s Port Harcourt, Warri, and Kaduna refineries, which were later voided by the late President Umaru Yar’Adua. Falana alleged that the deals lacked transparency and were marred by conflicts of interest.
Responding to Obasanjo’s recent comments on the matter, Falana, speaking on behalf of the Alliance on Surviving COVID and Beyond (ASCAB), noted that the refineries’ privatization violated the Privatisation and Commercialisation Act. He accused Obasanjo of sidelining then-Vice President Atiku Abubakar, who chaired the National Council on Privatisation (NCP), and directly managing the privatization process.
Falana highlighted that in May 2007, Obasanjo’s administration sold 51% of the Port Harcourt refinery to Bluestar Oil for $561 million and 51% of the Kaduna refinery for $160 million. Bluestar Oil, a consortium comprising Dangote Oil, Zenon Oil, and Transcorp, was allegedly linked to Obasanjo, who had acquired Transcorp shares via a “blind trust.”
Falana remarked: “Many interest groups questioned the legal validity and moral propriety of the sales, as they were finalized in the last days of the Obasanjo administration.” Trade unions, including NUPENG and PENGASSAN, strongly opposed the privatization, citing conflicts of interest and lack of due process. They argued that the $561 million deal undervalued the Port Harcourt refinery, which was estimated to be worth $5 billion.
In June 2007, both unions staged a four-day strike that nearly paralyzed the economy. The strike ended after the federal government promised to investigate the transactions. Following the investigation, Yar’Adua annulled the deals, a move that went unchallenged in court.
Falana added: “The cancellation of the privatization was not challenged in any court as it was carried out contrary to the letter and spirit of the Privatisation and Commercialisation Act.” He urged trade unions to resist renewed campaigns to privatize the refineries under unfavorable terms and advised those interested in such deals to build their own refineries, as Dangote Group has done.
Obasanjo Responds
Obasanjo, in a recent statement, expressed doubts about the Nigerian National Petroleum Company Limited’s (NNPCL) claims that the Port Harcourt and Warri refineries are operational after years of shutdown. “If anybody tells you now that they [the refineries] are working, why are they not with Aliko [Dangote] in the market?” he questioned.
Recalling his administration’s efforts, Obasanjo stated: “When I was president, I wanted to do something about the three refineries we have—Port Harcourt, Warri, and Kaduna. I asked Shell to come and run them for us, but they declined, citing reasons such as small capacities, poor maintenance, and corruption.”
Obasanjo noted that Dangote later led a consortium that paid $750 million for the PPP arrangement. However, Yar’Adua refunded the money and canceled the deal. He criticized the subsequent management of the refineries, alleging that over $2 billion
