NATIONAL INTEREST, FOREIGN DIRECT INVESTMENT AND SEPLAT ENERGY

 Dan Aibangbe urges the disputing parties to settle their differences in the interest of the nation

In recent times, there appears a subtle ripple in corporate Nigeria when a set of shadowy elements pulled off a corporate coup, simply by trumping up charges against the person of the British CEO of Seplat Energy Plc, the biggest private sector giant in the Nigerian oil and gas sector. The coup was consummated through a twin salvo fired in rapid succession. The first was via a petition to the Ministry of Internal Affairs, accusing the CEO, Mr Roger Thompson Brown, of disrespecting the person of the President of Nigeria in private conversations with his colleagues and non-possession of expatriate documents! The second came via ex-parte motion that sought to have the gentleman suspended from office pending the hearing of the substantive suit! 

Although these were carefully masked in the image of ‘concerned’ stakeholders, a casual investigation would reveal that a former board member, who rather than play the game using the noble rules of the game of chess, would rather resort to something else.

 Seplat Energy, in just over a decade of its establishment, is poised to become the biggest indigenous giant in the Nigeria Oil and Gas industry, when it concludes the acquisition and takeover of Mobil Producing Nigeria Unlimited from Exxon-Mobil Corporation. Seplat is also listed on both the Nigerian Stock Exchange (NGX) and the London Stock Exchange (LSE). The company is held by both corporate investors (47%) and private investors (31%). The rest is held by institutions and hedge funds and an infinitesimal 2% by insiders. As such, it is clear the company is well structured in ownership and properly positioned as an international oil company, (IOC). 

In August 2022, President Muhammadu Buhari gave approval in his capacity as Minister for Petroleum, for the USD1.28 billion acquisition of the shares of the retreating Mobil Producing Nigeria (a subsidiary of Exxon-Mobil Inc). At that time the President made it clear his approval was predicated on the need to promote Foreign Direct Investment in Nigeria, as a low hanging fruit of the recently consummated Petroleum Industry Act. The stakes are high as this is a trillion-naira corporation. No wonder the Board of Seplat deemed it necessary to pilot the affairs of the energy outfit  at this time under the leadership of a thoroughbred veteran British CEO, who as a Chartered Accountant, is a stickler for due process and corporate governance.

It is no wonder then that such a man as R.T. Brown would soon cross the path of a few disgruntled elements, especially those who desire to exploit the company for personal gains and insider dealings. 

Based upon findings and what the company has put out in the public domain, the conflict with Ministry of Internal Affairs that led to the temporary expulsion of Mr Brown emanated from the contrived petition by some individuals, whose purpose is yet to be fully ascertained. The ministry, in its official capacity tried to ensure justice by inviting the accused to state his own side of the story, but those pushing it ensured the Seplat CEO did not get to see the invitations for enquiries from the ministry. Rather, they made the Ministry of Internal affairs believe Mr Brown was too arrogant to heed such invitations! They also stated he lacks the requisite CERPAC and other documentation required for his status in Nigeria – a claim which is completely untrue.

The barrage of flimsy, spurious allegations smacks of a hatchet job without any pretense to an intention to correct, rather the desire to execute a perceived corporate enemy. In the board game of chess (the closest gaming comparison to corporate maneuverings) this move order is tantamount to a check, the precursor to checkmate! For instance, he was accused of forcing staff to resign, but no single case of wrongful dismissal has been filed. Remember, the oil industry is highly unionized and can easily seek redress even outside the courts. He was accused of abusing the Nigerian President in his privacy! He was also accused of discriminatory human resources practices, including on retirement age. However, majority of the functional and departmental heads are Nigerians, including the HR head! He was accused of operating an Aberdeen Office! This is a trillion-naira company that needs to play on the international scene. If there were financial infractions, I belief there are plenty of controls and institutions to cater to that.

Another curious issue is that this man being accused of oppression and racism and intimidation of Nigerian staff, is not even fully present in the country as contained in another allegation, which stated that he is yet to relocate his family to Nigeria as contained in the terms of his employment. If this issue was real and of negative effect, how come the employers have not acted but other shadowy stakeholders are more concerned? Same people who are trying to paint him a monster!

For those who may be wondering, Mr Brown did not just join Seplat, but has been the Chief Financial Officer (CFO) of its UK Seplat Petroleum Development Company, before his elevation to CEO in 2020. The Scottish Chartered Accountant and Associate of the Association of National Accountants of Nigeria has paid his dues working in several multinationals such as Standard Bank Group, among others.  

Now, having come to this sorry pass, I think the contending parties should all take a step back from the brink and reconsider their positions, using the prism of national interest. Mr Brown should approach the Ministry of Interior and Mr President (the Minister for Petroleum), reassuring the country of his comportment and ‘loyalty’. The minister should reappraise the exit order with the objective of fair hearing and justice, in view of the revelation that Mr Brown was actually prevented from responding to the ministry’s queries through some insiders’ subterfuge.

We must realize that the world is a global village and the information superhighway does not give room for hiding. The international investors are privy to every little move and react directly to such stimuli, where they perceive their investments are threatened by the shenanigans of both public officials as well as private cabals.  

On the issue of the writ pending before the Lagos High Court, no one should exercise any fears as I am confident the Nigerian courts are highly capable and efficient in dealing with business-related issues, to the satisfaction of all concerned. There appears an attempt to sweep off the entire Board and Directors of Seplat Energy. What is their real grouse? 

Regardless of the perceived weight of the allegations against the Seplat CEO, the principle of natural justice requires the balance of fair hearing. If Mr Brown is not personally available, I trust his legal representation will be available. Similarly, on the diplomatic side, it may be necessary for the Interior Ministry to get the British High Commission involved in bringing Mr Brown to answer the allegations contained in the petition filed against him. This does not in any way detract from Nigeria’s sovereignty, rather it builds upon the fertile diplomatic proximity between the two commonwealth nations. We must bear in mind the multitude of Nigerian professionals and other categories of nationals daily flocking the shores of the United Kingdom in search of the ever-elusive greener pastures. How would we expect them to be treated out there – summarily evicted and declared persona non-grata without exhausting every opportunity to hear them out?

Another serious consideration: how do we expect the investors who appointed Mr Brown as CEO to react? Will they look the other way and head-hunt another CEO or they would begin to seek a safer climate to invest in? Certainly, everyone is dispensable, but the manner of going about it can really be a game-changer! If the authorities have done a thorough job in dispensing justice in the matter, it may not be unreasonable to take a further step to state the facts and clear the air. In fact, that may really help to streamline our expectations with those of prospective international investors. The Swiss at some point, deliberately created a reputation for defending the privacy of its international investors and depositors, which gained the confidence of prospects across the globe.

Would Mr Brown and Seplat get justice?

 Aibangbe writes from Lagos