Controversy trails OVH’s acquisition of NNPC Retail
…as Atiku accuses Tinubu of abuse of office
By Olaseinde Gbenga, Abuja
Controversies have continued to trail the acquisition of NNPC retail by OVH Energy Marketing Limited.
In a new revelation, the company (NNPC retail), OVH and Nueoil jointly filed a petition at the Federal High Court in Lagos to dissolve the company despite the initial acquisition by NNPC Ltd in 2022.
The three organisations prayed the court to grant eight orders, including an order that NNPC Retail and Nueoil “be dissolved without being wound up” and that “the resultant company from the scheme shall be” OVH.
Reacting to the news making the rounds, the Chief corporate communications officer of NNPC Ltd, Olufemi Soneye, said the mandate of NNPC Retail and the working conditions of its staff remain unchanged.
“The working conditions of NNPC Retail staff remain unchanged following the court order. The mandate of NNPC Retail also remains consistent, ensuring energy security across its retail outlets nationwide and continuing to serve its customers effectively,” he revealed.
Recall that NNPC Ltd acquired OVH Energy Marketing Limited’s downstream assets in October 2022. NNPC Ltd at the time acquired Oando filling stations, a reception jetty with 240,000 metric tonnes monthly capacity and eight liquefied petroleum gas plants, three lube blending plants, three aviation depots, and 12 warehouses.
In the rolling delivered by the Court in June, Justice Aneke ruled that: “That an order is hereby made that all assets (including all tax attributes, unutilised capital allowances, tax losses, withholding tax credits and other refunds available, but excluding the 2nd petitioner’s shares in the 3rd petitioner), liabilities and business undertakings, including real property and intellectual property rights of the 1st and 2nd petitioners be transferred to the 3rd petitioner subject to the terms and conditions set out in the scheme without any further act or deed.
“That an order is hereby made that the entire share capital of the 1st and 2nd petitioners be cancelled. That an order is hereby made that all legal proceedings, claims and litigations pending or contemplated by or against the 1st and 2nd petitioners be continued by or against the 3rd petitioner after the scheme becomes effective.
“That an order is hereby made that the 1st and 2nd petitioners be dissolved without being wound up. That an order is hereby made that the resultant company from the scheme shall be the 3rd petitioner.”
Reacting to the news of the merger with OVH, Former Vice President of Nigeria, Atiku Abubakar accused President Bola Ahmed Tinubu of abuse of office.
The former VP alleged that the President is mortgaging the country and the NNPC to his family and associates.
Atiku noted that he believes that even after Tinubu leaves office, it will be nearly impossible to break these shackles.
Atiku, who was the Presidential candidate of the Peoples Democratic Party (PDP) in the last election further alleged the President is integrating his business interests into the federal level as he allegedly did in Lagos.
“Just as Alpha Beta, Primero, and others act as Tinubu’s proxies in Lagos, managing critical sectors and generating revenue for him and his family, he has begun to replicate this at the federal level,” Atiku said.
He expressed astonishment at the operations of the NNPC and how the government-owned oil company had put its retail arm under the control of OVH, a company in which Oando, led by Wale Tinubu, owns 49 percent.
Atiku regretted that his intention to privatise the NNPC and increase its transparency has been overshadowed by what he describes as the criminal hijack of the NNPC by corporate cabals around the current president.
“In October 2022, just five months before the elections, the NNPC Retail controversially announced it had acquired OVH and all its filling stations. NNPC Ltd already had about 550 filling stations across the country but claimed it was enhancing its capacity by acquiring OVH, which had only 94 stations and 100 others leased.
“The NNPC did not disclose the purchase price of OVH or the terms of the acquisition. A Freedom of Information request by Premium Times was also rejected by the NNPC, which claimed to be a private company despite still being government-owned.
“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 himself took on the role of Minister of Petroleum.
“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 percent 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.”
Atiku acknowledged that the NNPC and its leadership are under legislative investigation but expressed scepticism about the process’s credibility due to the vested interests of those conducting the investigation.
“Senator Opeyemi Bamidele, who is heading the National Assembly panel, is a known supporter of Tinubu. He served as a commissioner under Tinubu in Lagos State and publicly calls him his godfather. Given that Tinubu is the Petroleum Minister, he should be held responsible for the sector’s issues. I doubt Bamidele will conduct a thorough investigation that might implicate his patron,” Atiku said.
Atiku also commented on the recent revelation that the Lagos-Calabar Coastal Highway project is under litigation.
The Organized Crime and Corruption Reporting Project (OCCRP), a global network of investigative journalists, reported that the coastal highway project has been taken to court and revealed a close relationship between Tinubu’s son, Seyi, and Gilbert Chagoury, who was awarded the contract without competitive bidding.
“I had earlier claimed that the Lagos-Calabar Coastal Highway project was fraudulent, but the government denied it. Now, the matter is in court. It is also concerning that Chagoury and Tinubu have a business relationship, and their children are business partners, as revealed by the OCCRP.
“This indicates a conflict of interest. It is no surprise that the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Coastal Highway, which together will cost over $24 billion, were approved without competitive bidding. It seems that whatever Tinubu wants, he gets,” Atiku concluded.
