…Says Merger Of NNPC Retail Into OVH Based On Sound Commercial Considerations
…Vows To Resist Attempt To Drag NNPC Board, Management Into Partisan Politics
The Nigerian National Petroleum Company Ltd on Thursday debunked claims by a former Vice President of Nigeria, Atiku Abubakar that the operations of the NNPC have been hijacked by corporate cabals around the President Bola Tinubu.
It said contrary to the false alarm raised by Atiku, neither Wale Tinubu nor the President has any interest in the OVH acquisition.
Atiku had in a press statement signed by Mr. Paul Ibe, his Media Adviser claimed that there is currently a“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 per cent 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.
But reacting to the development, the NNPC in a statement signed by the Chief Corporate Communications Officer, Olufemi Soneye said the National Oil Company is a commercially-focused and profit-driven company managed by professionals who are committed to adding value to the nation.
He explained that nvestment decisions by NNPC Ltd Management are strictly determined on the basis of commercial viability and national interest.
The statement addee, “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 two 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 per cent 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.”
Soneye explained further in the statement that 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.
“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,” he added.
He stated further that the management of NNPC Ltd, under the leadership of Mr. Mele Kyari, has done very well in growing the company’s fortunes as shown in the 2023 Audited Financial Statement (AFS), where it reported N3.3tn as profit after tax.
“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,” the statement concluded.
ENDS