“Obasanjo Bypassed Legal Process”: Why Yar’Adua Cancelled P/Harcourt Refinery Sale, Falana Speaks

• Femi Falana has waded into the drama between the NNPC led by Mele Kyari and the former President of Nigeria Obasanjo over the sale of Port Harcourt Refinery in 2007
• In a statement, Falana disclosed that ex-President Umaru Yar’Adua annulled the sale of the Refinery to Aliko Dangote due to the lack of adherence to due process
• The senior lawyer also explained how Olusegun Obasanjo bypassed legal procedures in the privatization process of public enterprises, including the refineries

Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.

Senior Advocate of Nigeria (SAN), Femi Falana, has claimed that former President Umaru Yar’Adua declined the sale of the Port Harcourt Refinery to a consortium led by Aliko Dangote, because it did not follow due process.

OBJ explains how NNPC blocked Dangote’s plan to buy refineries

Legit.ng earlier reported that Former President Olusegun Obasanjo had, in an interview on Channels Television on Wednesday, January 1, 2025, explained how NNPC frustrated Dangote’s plan to purchase Nigeria’s refineries.

Read also

Falana finally gives reason Dangote’s request to buy Nigeria’s refinery was declined

Obasanjo said Dangote assembled a team and offered $750 million to run the facilities.

He told his predecessor to refund the money, claiming that NNPC promised to run the plants.

Falana reveals reason Yar’Adua cancelled sale of PH refinery

But in a statement on Friday, January 3, Falana alleged that Obasanjo bypassed the legal requirement by sidelining then-Vice President Atiku Abubakar and directly managing the privatisation of several state-owned enterprises.

As reported by The Punch, the statement reads:

“In utter breach of the Act, President Olusegun Obasanjo sidelined Vice President Atiku Abubakar and took over the privatisation of a number of public enterprises.

“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.

“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.”

Read also

Obasanjo accuses NNPCL of disrespecting him, gives reason

Read more about PH Refinery here:

• Nationalists movement back Obasanjo on Port Harcourt refinery, reasons emerge
• Why Port Harcourt Refinery Is not Working up to optimal levels, TUC president opens up

NNPC may reduce crude supply to Dangote Refinery

In another development, Legit.ng earlier reported that the NNPC might slash crude oil supply to Dangote Refinery from 300,000 barrels daily.

The cut was expected to begin as two other Nigerian refineries had started production.

The NNPC manages the Port Harcourt and Warri refineries, which operate at a combined capacity of 135,000 barrels per day.

Source: Legit.ng