The Nigerian National Petroleum Company Limited has stated that neither President Bola Tinubu nor Mr. Wale Tinubu of Oando Plc is involved in the acquisition of OVH by NNPC.

In a statement issued by its spokesperson, Olufemi Soneye, NNPC responded to comments made by Paul Ibe, the Media Adviser to former Vice President Atiku Abubakar.

The statement referenced Atiku's concerns regarding what he described as “the unlawful takeover of the NNPC by corporate interests” associated with President Tinubu.

Atiku also mentioned the continued appointment of Mr. Mele Kyari as the Group Chief Executive Officer of NNPC, suggesting it was a form of compensation related to the alleged acquisition of NNPC Retail Ltd by OVH, in which he claimed Wale Tinubu has a 49 percent ownership stake.

Additionally, Atiku accused the NNPC Retail Ltd—OVH acquisition of being part of a broader strategy by the President to merge his business interests with Nigeria’s federal public enterprises.

In response, Soneye clarified that investment decisions made by the NNPC’s management are solely determined by commercial feasibility and the national interest.

He emphasized that at the time of NNPC’s acquisition of OVH in 2022, Oando, in which Wale Tinubu holds an equity stake, had already fully divested its equity in OVH to the remaining two partners, Vitol and Helios.

“Oando began its divestment in 2016, with Vitol and Helios coming in as equity partners, leading to the name change from Oando to OVH. In 2019, Oando fully divested its equity interest in OVH, resulting in Vitol and Helios holding 50 per cent equity interests respectively.

“Upon acquisition of OVH by NNPC, both NNPC Retail Ltd and OVH effectively became subsidiaries of NNPC Ltd. However, based on professional advice and sound commercial considerations, NNPC Ltd opted to merge NNPC Retail Limited into OVH, and thereafter retain NNPC Retail Limited as the company name post-merger.

“The first step of merging NNPC Retail Ltd into OVH has been completed and the post-merger renaming as NNPC Retail Ltd is ongoing,” he explained.

Soneye explained that “contrary to the false alarm raised, neither Wale Tinubu nor the President has any interest in the OVH acquisition.”

He further stated that Atiku, as a business leader, should be aware that the efficacy of business leadership is best evaluated through financial statements and profitability rather than superficial factors.

“The management of NNPC Ltd, under the leadership of Mr Mele Kyari, has done very well in growing the company’s fortunes as shown in the 2023 Audited Financial Statement, where it reported N3.3tn as profit after tax.

“NNPC Ltd as a commercial entity is devoid of political interest and shall continue to conduct its business full of commitment to national interest and value creation for the benefit of all stakeholders. NNPC Ltd shall resist any attempt to draw its board and management into partisan politics,” he concluded.

Background information:

In October 2022, NNPC Ltd. announced its acquisition of the downstream assets of OVH Energy Marketing Limited. This move aimed to integrate OVH Energy with NNPC Retail, a subsidiary of NNPC Ltd.

The acquired assets include Oando filling stations, a reception jetty with a monthly capacity of 240,000 metric tonnes, eight liquefied petroleum gas plants, three lube blending facilities, three aviation depots, and twelve warehouses. However, an investigation in June 2023 revealed hidden agreements and a complex ownership structure that resulted in OVH Energy Marketing retaining managerial control over NNPC Retail.

The investigation also indicated that OVH Energy Marketing may not have possessed as many filling stations as it had claimed during the merger discussions. Furthermore, it was reported that Huub Stokman, an expatriate and former CEO of OVH Energy, was appointed as the new Managing Director of NNPC Retail, complicating the organizational structure further.

Additionally, the findings suggested that the acquisition had transformed NNPC Retail into a challenging work environment, with officials from OVH Energy taking charge of its operations.

“Did we acquire them, or did they acquire us? How come they are now the ones in the management,” one NNPC Retail staff told this newspaper.

In July 2023, the House of Representatives, after approving a motion introduced by Miriam Onuoha (APC, Imo), instructed NNPC Ltd to halt the acquisition while an investigation by its committee was conducted.

As a result, the House established an ad-hoc committee, chaired by Hassan Nalabraba (APC, Nasarawa), which began its inquiry into the contentious transaction in September 2023.

The ad-hoc committee has asked NNPC Ltd to provide details regarding the "registration documents/history from CAC for OVH, Nueoil, and NNPC Retail Limited (NRL), the Board Resolution of NNPC Ltd concerning the purchase of OVH, as well as the Audited Financial Statements and Management Accounts for OVH, Nueoil, NRL, and NNPC Ltd from 2015 to the present." Additionally, they requested "payroll records from 2015 to the present for NRL and OVH, the Board Resolution of NRL/CHQ regarding the relocation of the head office to Lagos, and proof of Tax Payments for NRL and OVH from 2015 onward."

The committee also sought documentation related to all financial transactions linked to the acquisition, including payment records and fund transfers.

In September 2023, Mele Kyari, the Group Chief Executive Officer of NNPC Ltd, stated during his appearance before the committee investigating the acquisition that NNPC Ltd now functions as a private limited liability company and engaged in a commercial relationship with OVH to capture market shares in the downstream petroleum sector. He asserted that NNPC Ltd acted appropriately in the acquisition process.

In a letter dated September 25, 2023, some concerned employees of NNPC Retail, represented by Mohammed Muazuo, expressed their dissatisfaction to the chairman of the House Committee regarding the committee's unfulfilled request.

In October 2023, Mr. Nalabraba delivered a report concerning the investigation. Earlier in February, the House of Representatives disbanded the committee that was looking into the contentious acquisition after the panel submitted a report that numerous lawmakers deemed “suspicious and poorly constructed.” The investigation was then reassigned to the House Committee on Petroleum Resources (Downstream) for a renewed inquiry.

In January, NNPC Ltd announced its inability to finalize the OVH acquisition, stating its intention to seek operating licenses for the facilities associated with OVH Energy Marketing Limited.