NNPC: Oando, President Bola Tinubu, Cousin Do Not Have Stakes in OVH

Emmanuel Addeh in Abuja

The Nigerian National Petroleum Company Limited (NNPC) yesterday pushed back on allegations by a former Vice President of Nigeria, Atiku Abubakar, that President Bola Tinubu as well as his cousin Wale, had underhand dealings in the national oil company’s acquisition of OVH.
Atiku had lamented “the criminal hijack of the NNPC by corporate cabals around the current president”, stressing that the retention of Mr. Mele Kyari as the Group Chief Executive Officer of NNPC was 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 and OVH acquisition deal was part of a grand scheme by Tinubu to integrate his personal business interests into Nigeria’s public enterprises at the federal level.
But while attempting to set the records straight, the NNPC in a statement by its Chief Corporate Communications Officer, Olufemi Soneye, said the company remains a commercially-focused and profit-driven company managed by professionals who are committed to adding value to the nation.
It argued that its investment decisions were strictly determined on the basis of commercial viability and national interest, rather than on the basis of politics.
“At the time NNPC  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,” the NNPC said.
The first step of merging NNPC Retail Ltd into OVH, the national oil company said, has been completed and the post-merger renaming as NNPC Retail Ltd was ongoing.

Contrary to the “false alarm” raised, the NNPC stated that neither Wale Tinubu nor the president has any interest in the OVH acquisition, stressing that 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.
“The management of NNPC, 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 N3.3 trillion as profit after tax.

“NNPC  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 shall resist any attempt to draw its board and management into partisan politics,” NNPC maintained.