Since President Bola Tinubu took office, the Nigerian National Petroleum Company Limited (NNPCL) has found itself at the center of intense scrutiny and controversy. Allegations of corruption, nepotism, and the misuse of state assets have been leveled against the company, with critics arguing that it is being used as a vehicle to execute questionable oil deals that primarily benefit the president’s family and inner circle.
The most prominent critic of the NNPCL’s recent activities is former Vice President Atiku Abubakar. In a scathing statement titled “Nigeria is rapidly transforming into a government of Tinubu, by Tinubu, and for Tinubu,” signed by his press secretary Paul Ibe, Atiku accused President Tinubu of tightening his grip on Nigerian assets through the NNPCL.
He asserted that Tinubu is replicating the model he used in Lagos, where companies like Alpha Beta and Primero allegedly acted as proxies to funnel revenue to him and his family, now at the federal level.
Atiku expressed deep concern about the direction in which the NNPCL is being steered, particularly regarding its recent dealings and leadership appointments. He claimed that even after Tinubu leaves office, the president’s entrenched influence will make it nearly impossible to dismantle these power structures.
The Controversial OVH Acquisition
Central to Atiku’s criticisms is the NNPCL’s controversial acquisition of OVH Energy, a company in which Oando, led by Wale Tinubu, owns 49%. The deal, which saw NNPCL’s retail arm merge with OVH, has been shrouded in controversy, with details such as the purchase price and the terms of the acquisition remaining undisclosed. This lack of transparency has fueled widespread suspicion and speculation about the true motives behind the transaction.
Atiku described the deal as a “criminal hijack” of the NNPCL by corporate cabals close to President Tinubu. He was particularly critical of the fact that OVH, a company previously under the control of NNPCL, has now effectively taken over NNPCL’s retail operations.
He argued that this transaction defies economic logic and represents a clear abuse of office by President Tinubu, who has positioned himself as the Minister of Petroleum, further centralizing control over the oil sector.
“In October 2022, just five months before the elections, the NNPC Retail controversially announced it had acquired OVH and all its filling stations. NNPCL already had about 550 filling stations across the country but claimed it was enhancing its capacity by acquiring OVH, which had only 94 stations and 100 others leased,” Atiku noted.
“The NNPC did not disclose the purchase price of OVH or the terms of the acquisition. A Freedom of Information request by Premium Times was also rejected by the NNPC, which claimed to be a private company despite still being government-owned.”
He also highlighted the appointment of Pius Akinyelure, a long-time ally of Tinubu, as the Chairman of NNPCL, alongside the retention of Mele Kyari as the Group Managing Director, despite widespread criticism of his leadership.
“Following this dubious deal, Mele Kyari was controversially retained as NNPC GMD despite his incompetence. Tinubu then appointed his former boss at Mobil, turned ally, Pius Akinyelure, as NNPC Chairman, while he himself took on the role of Minister of Petroleum,” he said.
Atiku suggested that these appointments were made not on the basis of merit, but to ensure that the NNPCL remains under the tight control of Tinubu’s loyalists.
“In a move that defies economic logic, OVH, previously owned by NNPC Retail, has now acquired NNPC Retail. This absurd situation means that Wale Tinubu’s Oando now owns 49% of NNPC Retail. Moreover, Nigeria paid Wale Tinubu a significant sum to facilitate the Tinubu family’s acquisition of the national oil company. This represents a clear case of illogical business transactions and abuse of office by President Tinubu, who has prevented NNPC from becoming a public liability company as stipulated by the PIA,” he said.
NNPCL’s Defense
In response to these serious allegations, the NNPCL has strongly denied any wrongdoing. The company issued a detailed statement titled “OVH Acquisition: The Facts, by NNPC Ltd,” which sought to clarify the circumstances surrounding the OVH deal and refute Atiku’s claims.
The NNPCL asserted that it is a commercially-focused and profit-driven entity, managed by professionals who are committed to adding value to the nation. The company said that its investment decisions are made based on commercial viability and national interest, not political considerations.
“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,” the statement clarified.
NNPCL also addressed concerns about its recent leadership appointments, defending the retention of Mele Kyari as GMD and the appointment of Pius Akinyelure as Chairman. The company pointed to its strong financial performance as evidence of sound management, noting that it reported a profit after tax of N3.3 trillion in its 2023 Audited Financial Statement.
“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.
Where the concerns lie
The controversy surrounding the NNPCL and its operations under President Tinubu is not an isolated incident. It is part of a broader pattern of concerns about governance, transparency, and the concentration of power in Nigeria’s oil sector. Since taking office, Tinubu has faced persistent accusations of leveraging state resources to solidify his power and reward loyalists, particularly in the oil sector, with the NNPCL playing a central role in this strategy.
These allegations have significant implications for Nigeria’s economy and its oil sector in particular. The NNPCL’s role in the country’s financial stability and its ability to attract foreign investment are both at risk if perceptions of corruption continue to grow. Moreover, the concentration of power within the NNPCL raises serious concerns about the potential for abuse and the erosion of accountability in Nigeria’s most critical economic sector.
NNPC Responds
PRESS RELEASE
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.
NNPC Ltd wishes to set the records straight with the following facts:
1. We are a commercially-focused and profit-driven company managed by professionals who are committed to adding value to the nation.
2. Investment decisions by NNPC Ltd Management are strictly determined on the basis of commercial viability and national interest.
3. 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% equity interests respectively.
4.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.
5. The first step of merging NNPC Retail Ltd into OVH has been completed and the post-merger renaming as NNPC Retail Ltd is ongoing.
6. Contrary to the false alarm raised, neither Wale Tinubu nor the President has any interest in the OVH acquisition.
7. 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.
8. 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 N3.3 trillion as profit after tax.
9. 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.
Olufemi O. Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja.
22 August, 2024
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