- Obasanjo Violated Privatization Act, Personally Managed Sale Of Public Assets-Falana
- Says Reversal Rectified Legal, Ethical Breaches, Safeguarded Nigeria’s National Interest
- Port Harcourt, Kaduna Refineries Undergoing Overhaul-NNPC Ltd
Fresh facts have emerged in the controversies surrounding the cancellation of the sale of the Port Harcourt Refinery to a consortium led by Dangote Oil.
Former President Olusegun Obasanjo stoked controversies on Thursday, January 2, 2024 when he disclosed that that state oil company, Nigerian National Petroleum Company NNPC Ltd misled his successor, Late Umaru Musa Yar’Adua into rejecting a $750 million offer from Aliko Dangote, chairman of Dangote Group, to manage the Port Harcourt and Kaduna refineries in 2007.
“Aliko’s team paid $750 million for the PPP. My successor refunded the money, saying NNPC wanted to run the refineries. I later explained the situation to him, but he insisted,” Obasanjo explained.
Reacting to the disclosure from Obasanjo, prominent human rights lawyer and Senior Advocate Of Nigeria, Femi Falana shed light on the reasons behind former President Umaru Yar’Adua’s decision to cancel the sale of the Port Harcourt Refinery to a consortium led by Dangote Oil.
READ ALSO: NNPC’s Misleading Claims Made Yar’Adua Reject Dangote’s $750m Refinery Offer – Obasanjo
In a strongly worded statement by Falana who is the Chairperson of Alliance on Surviving Covid and Beyond (ASCAB), Falana detailed that the move was carried out to rectify legal and ethical breaches and safeguard Nigeria’s national interest.
According to Falana, the sale, orchestrated by former President Olusegun Obasanjo in 2007, violated the ‘Privatisation and Commercialisation Act’, which mandates the Vice President to chair the National Council on Privatisation.
He disclosed that Obasanjo bypassed this requirement, sidelining then-Vice President Atiku Abubakar while personally managing the sale of public assets.
“On May 17, 2007, Obasanjo sold a 51% stake in the Port Harcourt Refinery to Bluestar Oil for $561 million and later sold a similar stake in the Kaduna Refinery for $160 million,” Falana revealed.
Bluestar Oil, comprising Dangote Oil, Zenon Oil, and Transcorp, faced criticism for conflicts of interest and lack of transparency.
Falana noted that unions such as NUPENG and PENGASSAN condemned the deals, alleging that the $561 million valuation for Port Harcourt Refinery significantly undervalued the asset, which was reportedly worth $5 billion.
Their protests culminated in a four-day strike that nearly crippled the Nigerian economy.
After a federal probe and mounting pressure, President Yar’Adua annulled the sales, a decision that Falana said faced no legal challenge due to its firm grounding in Nigerian law.
He further commended the role of NUPENG and PENGASSAN in advocating for national interest and called on them to remain vigilant amid renewed calls for the privatisation of Nigeria’s refineries.
“The Alliance on Surviving Covid and Beyond (ASCAB) hereby calls on NUPENG and PENGASSAN to intensify their historical struggle aimed at as a counterpoise to the renewed campaign for the privatisation of the nation’s refineries.
READ ALSO: Setting The Record Straight: Meritocracy And Milestones At NNPC Ltd
“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,” Falana urged while reinforcing the need for transparency and accountability in managing public assets.
Meanwhile, the NNPC Ltd has disclosed that the Port Harcourt Refinery and Kaduna Refinery are undergoing a comprehensive overhaul designed to meet world-class standards.
The company stated that the rehabilitation of the 60,000 bpd Port Harcourt Refinery and the Warri Refinery is not a routine turnaround maintenance as in the past, but a thorough overhaul aimed at achieving global standards.
NNPCL spokesman Olufemi Soneye made the clarification in a statement on Thursday while responding to former President Olusegun Obasanjo’s comments on the rehabilitation of the Port Harcourt and Warri refineries.
Mr Soneye said a notable achievement of the NNPCL was the overhauling of the Port Harcourt and Warri refineries, while similar efforts were underway at the second Port Harcourt and Kaduna refineries.
He said NNPCL was committed to enhancing and maintaining the refineries to global standards for sustainable operations.
Mr Soneye, however, invited the former president to visit the rehabilitated refineries and witness firsthand the progress made under the leadership of NNPCL.
“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.
“We hold President Olusegun Obasanjo in the highest regard as a respected statesman who has made significant contributions to the growth and progress of Nigeria.
“His dedication to national development and his right to speak on matters of national importance are both deeply respected,” he said.
READ ALSO: Setting The Record Straight: Meritocracy And Milestones At NNPC Ltd
Highlighting NNPC’s transformation, Mr Soneye said it had evolved into NNPCL, a private entity that transitioned from a loss-making organisation to a profit-oriented global energy leader.
Under this new model, he said the NNPCL had 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.
“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 Tinubu’s transformative policies in the energy sector,” he said.
