THE Nigerian National Petroleum Company (NNPCL) has reacted to allegations over the acquisition of OVH Energy, following the criticism raised by a former vice president, Atiku Abubakar.
The company’s chief corporate communications officer, Olufemi Soneye, in a statement on Thursday, August 22, disclosed what the company highlighted as facts.
A former vice president, Atiku Abubakar, in a statement issued on Monday, August 21 by his media adviser, Paul Ibe, alleged a criminal hijack of the NNPCL by corporate cabals around President Bola Tinubu.
Atiku claimed the group chief executive officer of NNPCL, Mele Kyari, retained his position as compensation for the alleged acquisition of NNPC Retail Ltd by OVH, in which Wale Tinubu, a younger brother to the President, held a 49 per cent stake.
He also alleged the NNPC Retail Ltd—OVH acquisition deal was part of a grand scheme by President Tinubu to integrate his business interests into the country’s public enterprises at the federal level.
In a statement on Thursday, Soneye said, “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 other partners – Vitol and Helios.
“Oando began its divestment in 2016, with Vitol and Helios coming in as equity partners, leading to the change of name from Oando to OVH.”
He said, in 2019, Oando fully divested its equity interest in OVH, resulting in Vitol and Helios holding 50 per cent equity interests, respectively.
Upon the acquisition of OVH by NNPC Ltd, both NNPC Retail Ltd. and OVH effectively became subsidiaries of NNPC Ltd, Soneye explained.
However, based on professional advice and sound commercial considerations, NNPC Ltd opted to merge NNPC Retail Ltd into OVH, and thereafter retain NNPC Retail Ltd as the company’s post-merger name.
He further said, “The first step of merging NNPC Retail Ltd. into OVH has been completed and the post-merger renaming as NNPC Retail Ltd. is ongoing.”
Soneye expressed that “contrary to the false alarm raised,” neither Wale Tinubu nor President Tinubu has any interest in the OVH acquisition.
“As a businessman, the former Vice President should know that effectiveness in business leadership is best measured by balance sheets and bottom lines rather than pedestrian considerations.
“We are a commercially focused and profit-driven company managed by professionals who are committed to adding value to the nation. Investment decisions by NNPC Ltd. Management is strictly determined based on commercial viability and national interest,” Soneye maintained.
He added that the NNPCL would resist any attempt to draw its board and management into partisan politics.
“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.”
The ICIR reported the House of Representatives was investigating the acquisition of OVH and had interrogated the NNPCL’s boss in September 2023.
The investigation followed a motion, ‘Need to Investigate the Irregularities and Alleged Corruption in the Nigerian Energy Security Provider, NNPC Retail Limited’, considered by the Lower House.
An ad-hoc committee constituted to investigate the matter, requested the NNPCL to provide it with documents on all financial transactions associated with the acquisition, including payment records and fund transfers, among other details.
At an investigative panel on Friday, September 15, 2023, the NNPCL chief claimed the allegations against the acquisition of OVH were not true.
Meanwhile, in October 2022, the NNPCL announced its acquisition of OVH Energy Marketing Limited’s downstream assets to add what it said was over 380 filling stations to its portfolio.