Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has described the Nigerian National Petroleum Company Limited’s (NNPCL) proposed plan to sell the country’s refineries as illegal, unconstitutional, and a veiled attempt to conceal the misappropriation of over $18 billion earmarked for their rehabilitation.
In a statement issued on Sunday, Falana, who also chairs the Alliance on Surviving COVID-19 and Beyond (ASCAB), criticised the NNPCL, stating that it lacks the legal authority to dispose of the refineries, which he asserted are owned by the federation and not the company.
He warned that any such sale would constitute a breach of the Nigerian Constitution and undermine ongoing corruption investigations.
Falana recalled that in 2021, the administration of former President Muhammadu Buhari approved $2.9 billion for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.
He alleged that a significant portion of those funds was diverted, despite NNPCL’s claims that the rehabilitation projects had been completed.
“Much of the money was criminally diverted,” Falana said, adding that the refineries have since remained non-operational. He noted that the Economic and Financial Crimes Commission (EFCC) has launched an investigation into the alleged misappropriation.
The SAN expressed disappointment over the decision by the NNPCL to commission the refineries in spite of adverse audit and security reports. His statement followed recent remarks by Aliko Dangote, President of the Dangote Group, who stated that the refineries may never function again, despite billions spent on them. The NNPCL’s Group CEO, Mr. Bayo Ojulari, had also hinted at plans to sell the assets, citing their outdated status and failed turnaround efforts.
Falana, however, argued that the proposed sale is not only misguided but unlawful.
“First, the public refineries are not owned solely by the NNPCL or even the Federal Government,” he said. “They are joint property of the entire federation, comprising the Federal Government, 36 state governments, and 774 local governments, under Section 44(3) of the 1999 Constitution (as amended).”
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He also warned that such a sale would compromise the EFCC’s ongoing probe into the alleged diversion of rehabilitation funds. Furthermore, he highlighted that the refineries are not listed in the Public Enterprises (Privatisation and Commercialisation) Act, making them ineligible for sale unless the law is amended.
Citing Section 16(2)(c) of the Constitution, which prohibits the concentration of wealth in the hands of a few, Falana maintained that privatising the refineries would contradict national economic principles.
The legal luminary also called on Dangote to assist the EFCC in its investigations, particularly regarding his public claim that the government spent $18 billion on the refineries.
“Mr. Dangote should cooperate with the EFCC to recover the funds,” he stated. “If recovered, that amount is more than enough to construct an entirely new refinery.”
Falana dismissed the conversation around the sale as a distraction designed to shield foreign contractors who, he claimed, received funds but failed to execute the rehabilitation works.
“The EFCC should issue an ultimatum to these contractors to either refund the $2.9 billion or complete the projects,” he added.
He also raised red flags regarding the NNPCL’s acquisition of shares in the Dangote Refinery. According to him, while the Federal Executive Council approved $2.76 billion for a 20% equity stake in the private refinery, Dangote recently revealed that the NNPCL only holds 7.2% equity.
“There has been no explanation from the NNPCL regarding the balance of the $2.76 billion,” Falana noted, urging the EFCC to extend its investigation to the share acquisition deal.
Falana concluded by calling on the NNPCL to halt any plans to privatise the refineries and instead focus on transparency and accountability.
“It is not too late to restore public trust in the oil and gas sector,” he said. “But this must begin with upholding the rule of law and ensuring that those responsible for looting public funds are brought to justice.”
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