The Nigerian National Petroleum Corporation (NNPC) Limited has firmly refuted the claims that Oando Plc and its CEO, Wale Tinubu, holds a 49% stake in the acquisition deal involving its retail subsidiary and OVH Energy. 

In a statement on Thursday, the spokesperson of NNPC, Olufemi Soneye, said the allegations made by former vice president Atiku Abubakar’s aide regarding the deal is both inaccurate and unfounded.  

Paul Ibe, an aide to former Vice President Atiku Abubakar, had previously claimed that the acquisition of NNPC Retail Ltd. By OVH was a “criminal hijack” orchestrated by a corporate cabal, specifically alleging that Wale Tinubu held a 49% stake in OVH. 

Reacting to the allegations, NNPC said Oando (in which Mr. Wale Tinubu had equity interest) had already divest fully its equity in OVH to the other partners – Vitol and Helios— before the acquisition by NNPC Retails Ltd.   

Soneye noted that the divestment process began initially in 2016 and was completed the in 2019.  

Moreover, NNPC Ltd. acquired OVH Energy in 2022.  

The statement released by the national oil company read in part:  

“The attention of NNPC Ltd. Has been drawn to a press release signed by Mr. Paul Ibe, a Media Adviser to the former Vice President, Alhaji Atiku Abubakar.  

“In the statement, the former Vice President was quoted to have lamented “the criminal hijack of the NNPC by corporate cabals around the current President”. 

“He was also quoted to have listed the retention of Mr. Mele Kyari as the Group Chief Executive Officer of NNPC Ltd as a compensation for the alleged acquisition of NNPC Retail Ltd. By OVH in which he claimed Mr. Wale Tinubu held 49% stake. 

“He further alleged that the NNPC Retail Ltd—OVH acquisition deal was part of a grand scheme by President Bola Ahmed Tinubu to integrate his personal business interests into Nigeria’s public enterprises at the federal level. 

“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.  

Additionally, the national oil company elaborated on its decision to merge its retail subsidiary with OVH Energy, emphasizing that the move was driven by strategic business considerations and a focus on maximizing profitability. 

Soneye said investment decisions by NNPC managements are strictly determined on the basis of commercial viability and national interest. 

He also explained that while the merger is still ongoing, NNPC decided to rename the new company as NNPC Retails Ltd.  

“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. 

“Contrary to the false alarm raised, Neither Wale Tinubu nor the President has any interest in the OVH acquisition,” he added.  

The NNPC reiterated its commitment to transparency and accountability, stating that it is a commercially focused company managed by professionals dedicated to maximizing value for its stakeholders. The company also emphasized its unwavering commitment to national interest and its resistance to any attempt to involve its board and management in partisan politics.

OVH Acquisition: The Facts

In a statement titled “OVH Acquisition: The Facts, by NNPCL,” the NNPC said investment decisions are based on commercial viability and national interest. 

“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.

“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.

“Contrary to the false alarm raised, neither Wale Tinubu nor the President has any interest in the OVH acquisition,” the statement said.

A Business Decision, Not Political Influence

The NNPC emphasized its commitment to national interest and resisted any attempt to draw its board and management into partisan politics. 

The company also highlighted its commitment to transparency and accountability, stating that it is a commercially-focused company managed by professionals dedicated to maximizing value for its stakeholders.

The NNPC’s statement underscores its stance on the acquisition of OVH as a purely business decision driven by strategic considerations and a commitment to profitability. 

It’s crucial to understand the complexities of this situation, as it highlights the intersection of business, politics, and public perception in Nigeria’s energy sector.