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CONTROVERSY OVER NNPC’S DECISION TO TRANSFER ALL RETAINED ASSETS TO TINUBU’S NEPHEW
The Nigerian National Petroleum Company Limited (NNPCL) has transferred all its retained assets to OVH Energy Marketing Limited, the operator of Oando Petroleum and a company owned by President Bola Tinubu’s nephew Wale Tinubu.
The NNPCL can now transfer its Retail ownership and assets to OVH following a court approval. The NNPCL Retail is primary importer of petrol in Nigeria
In October 2022, the NNPCL announced it had acquired OVH Energy Marketing, owner and operator of the Oando downstream assets from Nueoil Energy Limited a month after Nueoil Energy acquired OVH, which would.
This transaction allowed the NNPCL to capitalise on the already existing success of OVH and create an opportunity for the state-owned company to utilise the business model of Oando service outlets nationwide.
However, NNPCL, OVH and Nueoil filed a joint petition before Justice C.J. Aneke of the Federal High Court in Lagos on 24 June, asking the court to grant eight orders including the dissolution of NNPC Retail and Nueoil without being wound up
They also sought the approval of the transfer of their assets to OVH Energy Marketing. Justice Aneke subsequently granted the eight orders, making the merger effective from January 2024.
Meanwhile, the manner of which the transaction was conducted has raised concerns with an employee of NNPC Retail describing it as “criminal.”
An investigation by Premium Times also exposed discrepancies in OVH Energy’s claimed number of filling stations during merger talks with OVH Energy’s former CEO Huub Stokman being uncovered as NNPC Retail’s new Managing Director, making the deal more complicated.
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