…Demands Probe of $2.9bn Rehabilitation Scandal, Dangote Refinery Equity Deal
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Human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has declared that the Nigerian National Petroleum Company Limited (NNPCL) lacks the legal authority to sell the country’s public refineries, describing the move as unconstitutional, fraudulent, and a violation of national interest.
Falana, who is also Chair of the Alliance on Surviving COVID-19 and Beyond (ASCAB), made this known in a statement issued on Saturday, July 13, 2025.
He noted that the Buhari administration, in 2021, approved $2.9 billion for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries. Despite claims by the NNPCL that the refineries had been refurbished, security reports and developments have revealed otherwise, with the Economic and Financial Crimes Commission (EFCC) now investigating the alleged diversion of the funds.
“The Management of NNPCL lied to Nigerians by claiming the refineries had been rehabilitated,” Falana said, noting that both Port Harcourt and Warri refineries were ‘commissioned’ despite no meaningful work being done. “Having confirmed that the nation had been duped by foreign contractors and their local collaborators, the refineries have since been shut down.”
Falana faulted recent statements by both Dangote Group President, Aliko Dangote, and NNPCL’s Group CEO, Bayo Ojulari, indicating that the government may sell off the non-functional refineries. He described such discussions as diversionary and illegal.
According to Falana, the NNPCL has no power to sell the refineries for the following reasons:
- Ownership Structure: The refineries are not owned solely by the Federal Government or NNPCL but by the Government of the Federation, including the 36 states and 774 local governments, under Section 44(3) of the 1999 Constitution.
- Ongoing EFCC Investigation: Selling the refineries would jeopardize the EFCC’s probe into the fraudulent contracts for their rehabilitation.
- Legal Restrictions: The refineries are not listed among the public enterprises earmarked for privatization in the Privatisation and Commercialisation Act. Any sale without amending the law would be null and void.
- Constitutional Violation: Selling the refineries to a select few would breach Section 16(2)(c) of the Constitution, which forbids concentration of national wealth and productive assets in a few hands.
Falana also referenced Mr. Dangote’s disclosure that $18 billion had been spent by the Federal Government on the refineries over the years. He urged the business magnate to cooperate with the EFCC in the ongoing investigation to recover these funds.
He further criticized the NNPCL’s handling of its stake in Dangote Refinery. In 2021, the Federal Executive Council approved a $2.76 billion payment for a 20% equity stake in the Dangote Refinery. However, Dangote recently stated that the NNPCL holds only 7.2% equity.
“There has been no explanation for the discrepancy,” Falana said, urging the EFCC to also probe the apparent shortfall in share acquisition and possible fund diversion.
He concluded by demanding that the EFCC give the defaulting foreign contractors a deadline to either complete the refinery projects or refund the $2.9 billion, insisting that national assets must not be sold off to cover up acts of economic sabotage.
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