NNPCL dismisses allegations of ‘criminal hijack’ in OVH deal

The crisis surrounding the acquisition of Oando’s OVH and the retail arms of the Nigerian National Petroleum Company Limited (NNPC Retail) took a new turn on Thursday as the state oil company denied having any political interests.

NNPCL had previously announced the acquisition of the retail arms of Oando and OVH as part of its plan to become the largest retail petroleum company in Africa. However, the move has faced continuous backlash.

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Former Vice President Atiku Abubakar, in a release last week, raised concerns over what he termed the “criminal hijack of the NNPCL by corporate cabals around the current President.”

Like other stakeholders, Atiku also questioned the retention of Mele Kyari as the Group Chief Executive Officer of NNPC Ltd, calling it compensation for the alleged acquisition of NNPC Retail Ltd by OVH, in which he claimed Mr Wale Tinubu held a 49 per cent stake.

“Following this dubious deal, Mele Kyari was controversially retained as NNPC GMD despite his incompetence. Tinubu then appointed his former boss at Mobil, turned ally, Pius Akinyelure, as NNPC Chairman, while he took on the role of Minister of Petroleum,” Atiku said in a statement by his spokesman, Paul Ibe.

“In a move that defies economic logic, OVH, previously owned by NNPC Retail, has now acquired NNPC Retail. This absurd situation means that Wale Tinubu’s Oando now owns 49% of NNPC Retail. Moreover, Nigeria paid Wale Tinubu a significant sum to facilitate the Tinubu family’s acquisition of the national oil company. This represents a clear case of illogical business transactions and abuse of office by President Tinubu, who has prevented NNPC from becoming a public liability company as stipulated by the PIA.”

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In response, NNPCL, through its spokesperson, Olufemi Soneye, stated that its investment decisions are strictly based on commercial viability and national interest.

NNPCL stated that its investment decisions are strictly determined by commercial viability and national interest. It added that at the time it acquired OVH in 2022, Wale Tinubu’s company, Oando, had fully divested its equity in OVH to Vitol and Helios in 2019.

“At the time NNPC Ltd acquired OVH in 2022, Oando (in which Mr. Wale Tinubu has equity interest) had fully divested its equity in OVH to the two other partners – Vitol and Helios. Oando actually began its divestment in 2016, with Vitol and Helios coming in as equity partners, leading to the change of name 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,” NNPC said.

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The company added that upon acquiring OVH, both NNPC Retail Ltd and OVH became subsidiaries of NNPC Ltd. Based on professional advice and sound commercial considerations, NNPC Ltd decided to merge NNPC Retail Limited into OVH and retain the NNPC Retail Limited name post-merger.

NNPC stated that the first step of merging NNPC Retail Ltd into OVH has been completed, with the post-merger renaming as NNPC Retail Ltd ongoing.

It noted that neither Wale Tinubu nor the President have any interest in the OVH acquisition, further stressing that the company, as a commercial entity, is devoid of political interest and will continue to operate with a commitment to national interest and value creation for the benefit of all stakeholders.

NNPC stressed that Atiku should understand that effectiveness in business leadership is best measured by balance sheets and bottom lines rather than by pedestrian considerations.

The state-owned company also highlighted its recent financial success under Kyari’s leadership, noting the N3.3 trillion profit reported in its 2023 audited financial statement.

“NNPC Ltd., as a commercial entity, is devoid of political interest and shall continue to conduct its business with full 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,” it added.