NNPC says Tinubu not concerned however fails to deal with key points

The Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd) on Thursday stated President Bola Tinubu will not be concerned within the OVH Power Advertising and marketing Restricted acquisition deal.

Nevertheless, NNPC Ltd’s assertion by its chief company communications officer, Olufemi Soneye, on Thursday failed to deal with the important thing points raised concerning the OVH controversy.

On Tuesday, PREMIUM TIMES reported how a courtroom ruling had successfully dissolved NNPC Retail and transferred its possession to OVH Power Advertising and marketing Restricted.

The downstream arm of the Nigerian Nationwide Petroleum Firm Restricted (NNPC Retail) formally not exists after it requested a courtroom to switch its possession and properties to a agency it claimed to have purchased.

PREMIUM TIMES reported NNPC Ltd’s controversial buy of OVH Power Advertising and marketing Restricted and the way the bought firm primarily took over the administration of the customer, which an NNPC insider described as “essentially the most ridiculous enterprise acquisition on the planet.”

NNPC Ltd purchased OVH from Nueoil Power Restricted a month after Nueoil Power acquired OVH in September 2022.

Nevertheless, in June, the three corporations – NNPC Retail, OVH and Nueoil – collectively filed a petition on the Federal Excessive Courtroom in Lagos. In it, they requested the courtroom to grant eight orders, together with an order that NNPC Retail “be dissolved with out being wound up” and that “the resultant firm from the scheme shall be” OVH.

The petitioners additional requested that each one tax attributes, unutilised capital allowances, tax losses, withholding tax credit and different refunds accessible, however excluding the Nueoil Power shares within the OVH Power Advertising and marketing Restricted, liabilities and enterprise undertakings, together with actual property and mental property rights of the NNPC Retail and Nueoil Power Restricted be transferred to the OVH Power Advertising and marketing Restricted topic to the phrases and situations set out within the scheme with none additional act or deed.

The courtroom granted all eight orders, ordering that the merger be efficient from 1 January. The courtroom additionally mandated that each one obligatory incidental, consequential, and supplemental orders be made to make sure the total and efficient implementation of the merger.

On Wednesday, in his response to PREMIUM TIMES report, the candidate of the Peoples Democratic Get together (PDP) within the final election and former vice chairman of Nigeria, Atiku Abubakar, expressed astonishment on the operations of the NNPC Ltd and the way the government-owned oil firm had put its retail arm beneath the management of OVH, an organization he claims is owned by Oando, led by Wale Tinubu, a relative of the president.

Atiku regretted that his intention to privatise the NNPC and enhance its transparency has been overshadowed by what he describes because the “prison hijack of the NNPC by company cabals across the present president,” in accordance with the assertion signed by his Media Adviser, Paul Ibe, stated.

Following this controversial deal, Atiku stated, Mele Kyari, the NNPC boss, was controversially retained as NNPC group managing director “regardless of his incompetence.”

Atiku stated Nigeria paid Wale Tinubu a major sum to facilitate the Tinubu household’s acquisition of the nationwide oil firm, noting that this represents a transparent case of illogical enterprise transactions and abuse of workplace by Mr Tinubu, who has prevented NNPC from changing into a public legal responsibility firm as stipulated by the Petroleum Trade Act (PIA).

NNPC reacts

Nevertheless, the NNPC, in its response to Atiku on Thursday, stated on the time it acquired OVH in 2022, Oando (by which Wale Tinubu has fairness curiosity) had totally divested its fairness in OVH to the 2 different companions, Vitol and Helios.

The NNPC defined that Oando started its divestment in 2016, with Vitol and Helios coming in as fairness companions, resulting in the change of identify from Oando to OVH.

In 2019, in accordance with NNPC Ltd, Oando totally divested its fairness curiosity in OVH leading to Vitol and Helios holding 50 per cent fairness pursuits respectively.

PREMIUM TIMES reported the divestment by Vitol and Helios from OVH which they bought to Nueoil in 2022. NNPC then purchased OVH from Nueoil.

The nationwide oil firm stated whereas the merger continues to be ongoing, NNPC determined to rename the brand new firm as NNPC Retails Ltd.

“Upon acquisition of OVH by NNPC Ltd, each NNPC Retail Ltd and OVH successfully turned subsidiaries of NNPC Ltd. Nevertheless, primarily based on skilled recommendation and sound business concerns, NNPC Ltd opted to merge NNPC Retail Restricted into OVH, and thereafter retain NNPC Retail Restricted as the corporate identify post-merger.

“Step one of merging NNPC Retail Ltd into OVH has been accomplished and the post-merger renaming as NNPC Retail Ltd is ongoing. Opposite to the false alarm raised, neither Wale Tinubu nor the President has any curiosity within the OVH acquisition,” the assertion stated.

The NNPC stated it’s a commercially targeted and profit-driven firm managed by professionals who’re dedicated to including worth to the nation, noting that funding selections by its administration are strictly decided on the premise of business viability and nationwide curiosity.

“As a businessman, the previous Vice President ought to know that effectiveness in enterprise management is finest measured by steadiness sheets and backside traces moderately than pedestrian concerns.

“The administration of NNPC Ltd, beneath the management of Mele Kyari, has performed very nicely in rising the corporate’s fortunes as proven within the 2023 Audited Monetary Assertion (AFS), the place it reported N3.3 trillion as revenue after tax. NNPC Ltd as a business entity is devoid of political curiosity and shall proceed to conduct its enterprise stuffed with dedication to nationwide curiosity and worth creation for the advantage of all stakeholders,” Mr Soneye stated.

NNPC Ltd stated it will resist any try to attract its board and administration into partisan politics.

Points not but addressed

Nevertheless, a PREMIUM TIMES overview of the NNPC response exhibits that the state-owned oil agency failed to deal with the crux of PREMIUM TIMES tales.

Firstly, the corporate’s assertion indicated that it has didn’t adjust to the courtroom order that it requested. It requested that NNPC Retail “be dissolved with out being wound up” and that “the resultant firm from the scheme shall be” OVH. If NNPC Ltd now claims it created a brand new entity separate from what the courtroom granted, this exhibits that the corporate will not be complying with the courtroom order that it requested and the courtroom granted it.

Additionally, when NNPC introduced the acquisition of OVH from Nueoil, it didn’t announce that it was a partial acquisition deal. However the courtroom order provides exemption of the “Nueoil Power shares within the OVH Power Advertising and marketing Restricted.” NNPC failed to inform Nigerians the situation beneath which Nueoil continues to be co-owning OVH when NNPC had stated it acquired OVH? What share of OVH did NNPC purchase from Nueoil?

Additionally, if the NNPC acquired OVH because it claimed to have performed, how come the administration of NNPC Retail is now within the arms of OVH as mirrored in the truth that the managing director of OVH is now the managing director of NNPC Retail? Along with this, the headquarters of NNPC Retail has since been moved from Abuja to the OVH headquarters in Lagos.

These are a number of the key lacking particulars the nationwide oil firm failed to deal with.

Background

NNPC Ltd. introduced in October 2022 the acquisition of OVH Power Advertising and marketing Restricted’s downstream property. This acquisition would merge OVH Power with NNPC Retail, a subsidiary of NNPC Ltd.

The property acquired from the corporate, which operates Oando filling stations, additionally embrace a reception jetty with 240,000 metric tonnes month-to-month capability and eight liquefied petroleum fuel crops, three lube mixing crops, three aviation depots, and 12 warehouses.

However in June 2023, PREMIUM TIMES’ investigation on the acquisition uncovered the key offers and the difficult possession construction that left managerial management of NNPC Retail within the arms of OVH Power Advertising and marketing.

The report additionally uncovered that OVH Power Advertising and marketing could not have owned as many filling stations because it claimed in the course of the merger talks.

As well as, the report highlighted how Huub Stokman, an expatriate and former Chief Government Officer of OVH Power, emerged as the brand new Managing Director of NNPC Retail, a improvement that additional compounded the construction of NNPC Retail.

This newspaper additionally came upon that the acquisition of OVH Power had turned NNPC Retail right into a poisonous workspace, with officers of the previous taking on the latter’s working.

“Did we purchase them, or did they purchase us? How come they’re now those within the administration,” one NNPC Retail employees instructed this newspaper.

In July 2023, the Home of Representatives, following the adoption of a movement moved by Miriam Onuoha (APC, Imo), directed NNPC Ltd to droop the acquisition pending an investigation by its committee.

Consequently, the Home arrange an ad-hoc committee with Hassan Nalabraba (APC, Nasarawa) because the chairman and commenced an investigation into the controversial deal in September 2023.

The ad-hoc committee requested the NNPC Ltd to furnish it with details about “registration paperwork/historical past from CAC for OVH, Nueoil, and NNPC Retail Restricted (NRL), Board Decision of NNPC Ltd on buy of OVH, Audited Monetary Assertion and Administration Accounts from 2015 to Date OVH, Nueoil, NRL and NNPC Ltd” and the “payroll from 2015 thus far for NRL and OVH, Board Decision of NRL/CHQ for motion of head workplace to Lagos and proof of Tax Funds for NRL and OVH from 2015 thus far.”

The committee additionally requested paperwork on all monetary transactions related to the acquisition, together with fee data and fund transfers.

In September 2023, the Group Chief Government Officer of NNPC Ltd, Mele Kyari, whereas showing earlier than the committee investigating the acquisition, stated NNPC Ltd now operates like a non-public restricted legal responsibility firm and entered the business relationship with OVH to take over market shares within the downstream petroleum market shares. He stated NNPC Ltd did nothing unsuitable within the acquisition.

In the meantime, some NNPC Retail ‘involved employees’, in a letter dated 25 September 2023, addressed to the chairman of the Home Committee, and signed on their behalf by Mohammed Muazuo, famous that the request by the committee was not met.

In October 2023, Mr Nalabraba offered a report on the investigation.

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In February, the Home of Representatives dissolved the committee investigating the controversial acquisition after the panel offered a report many lawmakers described as “suspicious and tacky.” The duty was subsequently transferred to the Home Committee on Petroleum Sources (Downstream) for a contemporary investigation.

In January, NNPC Ltd introduced that it was unable to finish the OVH acquisition. It stated it intends to use for working licenses for the amenities beneath OVH Power Advertising and marketing Restricted.