Yar’Adua stopped refinery sale to Dangote over due process, paltry amount – Falana replies Obasanjo

Human rights lawyer Femi Falana (SAN) yesterday attributed federal  government’s  cancellation of a Public, Private Partnership (PPP) arrangement for the management of the Port Harcourt, Warri and Kaduna refineries approved by the Obasanjo government in 2007 to the questionable circumstances surrounding the deal.

Falana, responding to the Thursday statement by ex-President Olusegun Obasanjo on how his successor, the late Umaru Yar Adua, refunded the $750 million paid by a consortium to run the refineries, said the deal lacked transparency.

The activist, in a statement on behalf of Alliance on Surviving Covid and Beyond (ASCAB), recalled how Obasanjo “in utter breach” of the Privatisation and Commercialisation Act, allegedly sidelined Vice President Atiku Abubakar, who was the Chairman of the National Council on Privatisation (NCP), and “took over the privatisation of a number of public enterprises.”

The NCP was established to oversee the privatisation and commercialisation of public enterprises

He said: “On May 17, 2007, President Obasanjo sold a 51% stake in the Port Harcourt refinery to Bluestar Oil for US$561 million.

“In another transaction that took place on  May 28, 2007, President Obasanjo sold  51% shares in Kaduna Refinery to Bluestar Oil for $160 million.

“Bluestar Oil was a consortium of three domestic companies, including Dangote Oil, Zenon Oil and Transcop.

“Before the deal, President Obasanjo had acquired large shares in Transcorp through ‘blind trust.’

“Many interest groups in the country questioned the legal validity and moral propriety of the sales as they were consummated in the last days of the Obasanjo administration.

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“The two powerful trade unions in the oil industry —the  National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) kicked against the privatisation of the two refineries on grounds of conflict of interest and lack of due process.

“They also alleged that the nation had been shortchanged as the shares acquired in the Port Harcourt refinery for $516 million were worth US$5 billion.

“Convinced that the deals were not in the national interest, both unions proceeded on a 4-day strike that almost paralysed the Nigerian economy in June 2007.

“The strike was called off based on the assurance of the federal government to the effect that the deals would be fully investigated.

“Upon the conclusion of the investigation by the federal government, the purported privatisation of the Port Harcourt and Kaduna refineries was cancelled by President Umaru Yar’adua.

“It is on record that the cancellation of the privatisation was not challenged in any court as it was carried out contrary to the letter and spirit of the Privatisation and Commercialisation Act.”

The Falana-led alliance alleged a renewed campaign for the privatisation of the nation’s refineries, and asked NUPENG and PENGASSAN to intensify their historical struggle to act as a counterpoise to the campaign .

“Those who are awaiting the privatisation of the refineries in a manner at variance with the national interest should be advised to set up their own refineries like the Dangote Group,” he said.

Obasanjo had expressed doubts over the reactivation of the Port Harcourt and Warri refineries by the Nigerian National Petroleum Company Limited (NNPC) following years of shutdown.

He said the NNPCL claims could not be true.

His words: “So if anybody tells you now that they (the refineries ) are working, why are they not with Aliko (in the market)?

“And Aliko will make his own refinery work. Not only make it work, he will make it deliver.

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“Whether we announce our own government refineries are working or not working, look, it is like they say in Yoruba adage, ‘the man who plants 100 heaps of yams and says he has planted 200 heaps, they say after he has harvested 100 heaps of yam, he will also harvest 100 heaps of lies,” he said in response to a question on the oil assets.

 “Well, you know what I said about the Port Harcourt refinery? Do you remember?

“I will remind you. I said when I was president, I wanted to do something about the three refineries we have. Port Harcourt, Warri and Kaduna.

“And Aliko Dangote got a team after I asked Shell to come and run them for us, and Shell said they wouldn’t.

“I said please, come and take equity. They said no. All right, don’t take equity, come and run it. They said no. Later on I called them.

“I called the boss of Shell then. Come and tell me what it is. And he gave me four or five reasons.

“He said, well, first of all, we make our major profit from upstream, not from downstream. Downstream we run just to keep our head above water.

“Two, the refineries are too small, 60,000 barrels per day, 100,000 barrels and I think 120,000 barrels. He said at that time, the average refinery was going for 250,000 barrels per day.

“Three, he said our refineries are not well maintained.

“Four, he said there was too much corruption around the activities of our refineries and they would not want to get involved in that.

“And when anybody tells you a thing like that, what will you do? And it was after that that Aliko got a team together and they paid $750 million to take part in PPP, running the refinery. My successor refunded their money.”

“But I was told not too long ago that since that time, more than $2 billion has been squandered on the refinery and they still will not work.

“Anybody can tell you. If a company like Shell tells me what they told me, I will believe them.”

The authorities of NNPCL have invited Obasanjo to come and personally inspect the refineries to see them in operation.

Chief Corporate Communications Officer of the company, Olufemi Soneye, said the new business model run by NNPCL has helped turn the facilities around.

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He said: “Today, NNPC has evolved into NNPC Limited, a private entity that has transitioned from being a loss-making organisation to becoming a profit-oriented global energy leader.

“Under this new model, NNPC Limited has expanded beyond oil and gas to become an integrated energy company.

“Our focus is not only on harnessing traditional resources but also on developing cleaner, cheaper and sustainable energy solutions to meet Nigeria’s growing demands.”

He described the complete rehabilitation of the Port Harcourt Refining Company and Warri Refinery as a notable achievement by the company, saying that what has been done is not the typical Turnaround Maintenance (TAM) of the past but a comprehensive overhaul designed to meet world-class standards.

He added: “Similar efforts are underway at the old Port Harcourt Refinery and Kaduna Refinery, ensuring these facilities are enhanced and maintained to global standards for sustainable operation.

“This progress has been driven by the visionary leadership of the NNPC Limited board and the management team led by GCEO Mele Kyari, alongside President Bola Ahmed Tinubu’s transformative policies in the energy sector.

“Together, they have achieved unprecedented milestones, setting NNPC Limited on a path to redefine energy security for Nigeria while positioning the company as a leader on the global energy stage.

“We extend an invitation to our esteemed former president to join us in this historic journey.

“His wisdom and experience are invaluable, and we deeply appreciate his insights and guidance, which will always be welcomed and cherished.

“Additionally, we warmly invite President Obasanjo to tour the rehabilitated refineries and witness firsthand the progress made under the leadership of NNPC Limited.

“We remain grateful for his enduring contributions to Nigeria’s development and are committed to building a brighter, more prosperous future for our nation.

“Together, we can continue to ensure energy security and deliver sustainable value to all Nigerians.”

Yar’Adua stopped refinery sale to Dangote over due process, paltry amount – Falana replies Obasanjo