Human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, has criticised the Nigerian National Petroleum Company Limited (NNPCL) over its proposed plan to sell the nation’s public refineries, describing the move as illegal, unconstitutional, and a ploy to cover up the diversion of over $18 billion meant for their rehabilitation.
Falana, who also chairs the Alliance on Surviving COVID-19 and Beyond (ASCAB), raised the alarm in a statement, warning that the NNPCL has no legal authority to sell the refineries, which he emphasized belong to the federation—not the company.
According to him, in 2021, the Muhammadu Buhari-led administration approved $2.9 billion for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries. However, Falana alleged that much of the funds were criminally diverted, while the NNPCL falsely claimed the rehabilitation had been completed.
The SAN expressed disappointment that, despite adverse security and audit reports, the company went ahead to commission the Port Harcourt and Warri refineries. He noted that following exposure of the alleged fraud, the refineries have remained shut, while the Economic and Financial Crimes Commission (EFCC) has launched an investigation into the misappropriation of the $2.9 billion.
Falana’s statement comes just days after Alhaji Aliko Dangote, President of the Dangote Group, suggested the refineries may never function again, despite the reported $18 billion spent on them. His concerns were echoed by NNPCL Group Chief Executive Officer, Mr. Bayo Ojulari, who hinted at plans to sell the assets due to their obsolete state and failed turnaround efforts.
But Falana challenged the legality of such a move, asserting that the NNPCL lacks the authority to sell the refineries for several compelling legal reasons.
“First, the public refineries are not owned by the NNPCL or even the Federal Government alone. They are joint property of the entire federation—that is, the Federal Government, 36 state governments, and the 774 local government areas—under Section 44(3) of the 1999 Constitution (as amended),” he said.
“Secondly, any attempt to sell the refineries now would sabotage the ongoing EFCC probe into the fraudulent diversion of the $2.9 billion meant for their rehabilitation,” he added.
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Falana further pointed out that the refineries are not listed among public enterprises scheduled for privatisation under the current Commercialisation and Privatisation Act. Without an amendment to the Act, he said, any such sale would be illegal and void.
He also cited Section 16(2)(c) of the Nigerian Constitution, which prohibits the concentration of wealth or the means of production in the hands of a few individuals or groups. Selling the refineries to private entities, he warned, would violate this constitutional principle.
Falana also challenged Dangote to assist the EFCC in its investigation, given his apparent knowledge of the government’s expenditure on the refineries.
“Mr. Dangote has said the government spent $18 billion on rehabilitation. He should be ready to cooperate with the anti-graft agency to help recover the funds. If recovered, that money would be more than sufficient to build an entirely new refinery,” he stated.
The SAN dismissed ongoing discussions about selling the refineries as a diversionary tactic aimed at shielding two foreign contractors who allegedly collected payments but failed to deliver on the contracts.
“The EFCC should issue an ultimatum to the contractors to either complete the rehabilitation or refund the $2.9 billion,” he said.
Falana also raised concerns about financial discrepancies in the NNPCL’s acquisition of shares in the privately-owned Dangote Refinery. He noted that in August 2021, the Federal Executive Council approved $2.76 billion for the purchase of a 20% stake in the refinery.
“Yet, Dangote recently revealed that the NNPCL only acquired 7.2% equity in the company. There’s been no explanation from the NNPCL on the balance of that $2.76 billion. The EFCC must also investigate this apparent shortfall,” Falana demanded.
He urged the NNPCL to abandon any plans to sell the refineries and instead collaborate with law enforcement to ensure accountability and the recovery of stolen public funds.
“It is not too late to restore public confidence in our oil sector. But it must begin with transparency, the rule of law, and holding all those responsible to account,” he concluded.
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