The Nigerian National Petroleum Company Limited (NNPC) acquired OVH Energy Marketing Limited in 2022, a deal that has been shrouded in controversy. The acquisition involved the transfer of control from NNPC Retail to OVH Energy, which operates Oando assets. This transfer was sanctioned by a court ruling that dissolved NNPC Retail, raising concerns about the transparency and legitimacy of the deal. Former Vice President Atiku Abubakar accused President Bola Tinubu of using proxies, like OVH, to control significant sectors of the economy. He questioned the timing and the lack of transparency surrounding the acquisition, which occurred shortly before the presidential election. Various media outlets, including Sahara Reporters, This Day Newspaper, and Business Day, have reported on the accusations and controversies surrounding the deal. Despite NNPC’s assertion that the acquisition was based on commercial viability, questions remain regarding the acquisition’s impact on the Nigerian oil sector and the influence of political motives on the decision-making process.

Timeline of Events:

2015:

  • Throughout the year: Oando gradually divests its stake in its downstream business, partnering with foreign companies Helios and Vito. They form a new company, OVH Energy (allegedly standing for Oando, Vito, Helios).

October 2022:

  • Early October: NNPC Ltd acquires OVH Energy Marketing Limited, owner and operator of the former Oando downstream assets, for a reported ₦140.559 billion (USD 325.09 million). This brings over 380 additional filling stations under the NNPC Retail brand in Nigeria and Togo.
  • Late October: Atiku Abubakar, responding to the acquisition, accuses President Muhammadu Buhari of corruption, stating that NNPC paid an inflated price for OVH Energy, a company secretly owned by allies of the soon-to-be-elected president, Bola Tinubu.

2023:

  • June: Premium Times publishes an investigative report alleging secret deals and a complex ownership structure in the NNPC-OVH deal, suggesting OVH Energy may not have owned as many filling stations as claimed and highlighting Huub Stokman, former OVH CEO, becoming the Managing Director of NNPC Retail.
  • July: The House of Representatives directs NNPC Ltd to suspend the OVH acquisition pending an investigation.
  • September: An ad-hoc committee, chaired by Hassan Nalabraba, commences an investigation into the NNPC-OVH deal. NNPC Ltd CEO Mele Kyari appears before the committee, defending the acquisition.
  • October: Hassan Nalabraba presents a report on the investigation, which is dismissed by many lawmakers as “suspicious and shabby.”

2024:

  • January: NNPC Ltd announces its inability to complete the OVH acquisition and its intention to apply for operating licenses for OVH Energy Marketing Limited’s facilities.
  • February: The House of Representatives dissolves the ad-hoc committee investigating the acquisition and transfers the task to the House Committee on Petroleum Resources (Downstream) for further investigation.
  • June 24: NNPC Retail Limited, Nueoil Energy Limited, and OVH Energy Marketing Limited jointly file a petition at the Federal High Court in Lagos, seeking orders that effectively dissolve NNPC Retail and transfer all assets and liabilities to OVH Energy Marketing Limited.
  • July 18: Justice C.J. Aneke grants all the orders requested in the petition, effectively dissolving NNPC Retail and transferring its assets and liabilities to OVH Energy, making the merger effective from January 1, 2024. The court’s decision is published in the official government gazette and reported in Punch Newspaper.
  • August: Atiku Abubakar renews his accusations against now-President Bola Tinubu, alleging that the NNPC-OVH deal was a corrupt scheme to enrich Tinubu’s allies, specifically pointing to Wale Tinubu.
  • August 20: Premium Times publishes an article reporting that NNPC Retail has officially ceased to exist, with OVH Energy Marketing Limited assuming full control.
  • August 21: Sahara Reporters publishes an article detailing the court ruling that dissolved NNPC Retail.
  • August 23: NNPC Ltd releases a statement refuting Atiku Abubakar’s accusations, claiming that the OVH acquisition was based solely on commercial viability and that Wale Tinubu has no stake in OVH Energy Marketing Limited.

Cast of Characters:

NNPC Ltd (Nigerian National Petroleum Company Limited): The state-owned oil company of Nigeria.

  • Mele Kyari: Group Chief Executive Officer of NNPC Ltd. Defends the OVH acquisition, stating it was conducted properly and benefits NNPC commercially.

NNPC Retail Limited: The downstream arm of NNPC Ltd, responsible for fuel retail operations. It ceased to exist after a court order transferred its assets and liabilities to OVH Energy.

OVH Energy Marketing Limited: A downstream oil company, formerly known as Oando Marketing, operating a network of filling stations. It was acquired by NNPC Ltd and later became the sole owner of NNPC Retail’s assets.

  • Huub Stokman: Former CEO of OVH Energy and, controversially, the Managing Director of NNPC Retail after the acquisition.

Oando PLC: A Nigerian energy solutions provider previously involved in the downstream sector.

  • Wale Tinubu: Group Chief Executive Officer of Oando PLC and a relative of President Bola Tinubu. He denies any involvement in OVH Energy after 2015 when Oando divested its stake in the company.

Nueoil Energy Limited: A company that briefly owned OVH Energy before it was acquired by NNPC Ltd. Its exact role in the transactions remains unclear.

Helios Investment Partners: A UK-based private equity firm that was an equity partner in OVH Energy after Oando’s divestment.

Vitol: A global energy and commodity trading company that was an equity partner in OVH Energy after Oando’s divestment.

Atiku Abubakar: Former Vice President of Nigeria and a former presidential candidate. He is a vocal critic of the NNPC-OVH acquisition, alleging corruption and political maneuvering.

Nigerian House of Representatives: The lower house of Nigeria’s bicameral legislature. It initiated an investigation into the NNPC-OVH deal following public outcry.

  • Hassan Nalabraba: Chairman of the ad-hoc committee initially tasked with investigating the NNPC-OVH deal.

Premium Times: A Nigerian online newspaper that has published several investigative reports on the NNPC-OVH deal, raising concerns about its transparency and potential conflicts of interest.

Sahara Reporters: A New York-based online newspaper focused on Africa, known for its citizen journalism and investigative reporting. It has covered the NNPC-OVH deal and the surrounding controversy.

Justice C.J. Aneke: The judge at the Federal High Court in Lagos who presided over the petition by NNPC Retail, Nueoil, and OVH, ultimately ruling to dissolve NNPC Retail and transfer its assets and liabilities to OVH.