Femi Falana, a prominent Nigerian human rights lawyer, has provided an insightful explanation regarding the cancellation of the sale of the Port Harcourt refinery to a consortium led by billionaire businessman Aliko Dangote. According to Falana, the decision by former President Umaru Musa Yar’Adua to halt the transaction was deeply rooted in both legal concerns and a desire to protect Nigeria’s national interests.
In a detailed statement, Falana emphasized the critical legal framework that governs privatization in Nigeria, specifically referencing the Privatisation and Commercialisation Act. This law designates the Vice President as the chairperson of the National Council on Privatisation (NCP), which is the body responsible for overseeing the privatization of public assets. Falana pointed out that the proper adherence to these legal processes was a key factor in Yar’Adua’s decision.
Falana further explained that the decision to cancel the sale was part of an effort to maintain the sovereignty of Nigeria’s strategic resources and to prevent any potential exploitation of the country’s assets. “The reversal of the sale was a pivotal move to uphold the law and safeguard the nation’s interests,” Falana stated, underscoring the importance of transparency and due process in such high-stakes transactions.
According to Falana, the cancellation was a deliberate and necessary action aimed at ensuring national accountability and integrity. He argued that the administration’s choice to reverse the sale was an act of leadership aimed at protecting public resources from being mishandled or sold under questionable circumstances.
However, Falana did not shy away from criticizing former President Olusegun Obasanjo’s administration, which he accused of bypassing the legal framework governing privatization. He revealed that Obasanjo’s government had acted unilaterally in several privatization transactions, including the sale of the Port Harcourt refinery to Bluestar Oil in 2007.
Falana explained that on May 17, 2007, President Obasanjo authorized the sale of a 51 percent stake in the Port Harcourt refinery to Bluestar Oil for $561 million. Another similar sale took place on May 28, 2007, where 51 percent of the Kaduna Refinery was sold to Bluestar Oil for just $160 million. These deals, according to Falana, raised significant concerns among stakeholders, especially labor unions in the petroleum sector.
The National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) were vocal critics of these privatization deals, arguing that the transactions were not only rushed but also undervalued. Falana noted that both unions raised alarms about the lack of due process and warned that the country had been shortchanged in these deals.
“According to estimates, the shares acquired in the Port Harcourt refinery for $516 million were worth around $5 billion,” Falana revealed, adding weight to the claims that Nigeria had not received a fair deal. He pointed out that the undervaluation of national assets and the lack of transparency had resulted in significant financial losses for the country.
In light of these revelations, Falana praised the decision to cancel the Port Harcourt refinery’s sale to Dangote’s consortium, arguing that it was a necessary step to restore confidence in the country’s privatization process. He commended the role played by NUPENG and PENGASSAN in pushing for accountability, particularly as they raised questions about the fairness and legality of past privatization deals.
Falana’s statement also addressed the ongoing debate surrounding the privatization of Nigeria’s refineries. While some proponents argue that privatization could lead to better management and efficiency, Falana emphasized the need for proper oversight, transparency, and due diligence in any future deals. The debate over refinery privatization has resurfaced with renewed vigor, particularly as the country faces persistent challenges in its energy sector.
The human rights lawyer warned that any future privatization efforts must prioritize the national interest and ensure that Nigeria’s resources are not exploited by powerful individuals or corporations. He urged both the government and the public to remain vigilant and to demand greater accountability in the management of public assets.
As part of his statement, Falana also addressed the broader issue of governance and transparency in Nigeria. He stressed the importance of ensuring that national assets are managed in accordance with the law and in the best interests of the Nigerian people. He reiterated that privatization, when done correctly, could potentially enhance the efficiency of public enterprises, but only if the process is transparent and carried out with integrity.
