Nigerian National Petroleum Company Limited (NNPC ) has responded to recent allegations made by former Vice President Atiku Abubakar, who claimed that the company’s acquisition of OVH Energy has been hijacked by corporate cabals around President Bola Tinubu.
Atiku’s spokesperson, Paul Ibe, made the allegation in a statement today, citing how NNPC had put its retail arm under the control of OVH, a company in which Oando, led by Wale Tinubu, owns 49%.
He also alleged that the retention of Mele Kyari as Group Chief Executive Officer of NNPC Ltd. was a reward for the supposed acquisition deal.
“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,” the allegation read.
“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.”
However, in response to this allegation, NNPC in a statement on Thursday, through its spokesperson, Olufemi Soneye, dismissed the former Vice President’s allegations of “criminal hijack.”
NNPC said its investment decisions are strictly determined on the basis of 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 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% equity interests, respectively,” NNPC said.
“Upon acquisition of OVH by NNPC Ltd, 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.”
NNPC added that, contrary to the allegation, neither Wale Tinubu nor the President have any interest in the OVH acquisition, noting that Atiku should know that, effectiveness in business leadership is best measured by balance sheets and bottom lines rather than pedestrian considerations.
The state-owned company also noted its recent financial success under Kyari’s leadership, pointing to 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 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.” it added.
