Reps committee commences fresh investigation into NNPC’s acquisition of OVH

The House of Representatives Committee on Petroleum Resources (Downstream) has commenced a fresh investigation into the acquisition of OVH Energy Marketing’s downstream assets by the Nigerian National Petroleum Company Limited (NNPC Ltd).

The chairman of the committee, Ikeagwuonu Ugochinyere, in a statement sent to PREMIUM TIMES on Wednesday evening, said the decision follows a direct order from the House to reinvestigate the matter after the first report was rejected due to unaddressed critical facts.

Speaking on the resolution reached by members after the special committee meeting, Mr Ugochinyere said the investigation is distinct from the previous inquiry carried out by the former committee.

He said members of the public are invited to provide input before lawmakers present their recommendations on the House floor.

He added that any individual found to have acted improperly either through direct wrongdoing or failure in oversight will be identified, and appropriate recommendations will be made in the best interest of the nation.

“The House mandated the Downstream Committee to undertake a fresh investigation with a clear directive to uncover what truly transpired in the OVH acquisition process. This includes examining the funds paid, details of the acquisition agreement, the assets involved, and the circumstances in which former OVH managers were reported to have formed a new company that later acquired OVH itself,” Mr Ugochinyere said.

Shockingly, he said those same individuals are also alleged to have assumed leadership roles within NNPC Retail, raising serious concerns about the integrity and transparency of the entire transaction.

“The committee has now begun this re-investigation in earnest and held a special committee meeting to deliberate on the matter. One of the key resolutions at that meeting was the timely completion of the investigation, which has been long overdue. Pressure from retail staff, industry stakeholders, and members of the public has mounted, questioning the delay and demanding accountability,” he said.

He explained that one of the major causes of delay was the failure of certain stakeholders to submit vital documents.

However, he said the committee has resolved to move forward with or without those submissions and complete the assignment as mandated by the House.

“As part of the parliamentary process, the investigation must be concluded and a detailed report submitted to the House for action. This investigation is critical not just to address the numerous unanswered questions and alleged irregularities surrounding the OVH acquisition but also to allow the new leadership at NNPC Retail to focus fully on their ongoing reforms without distraction.

“Laying these matters to rest is essential for restoring public trust and ensuring that the reforms are not undermined by past controversies,” he said.

The Acquisition

NNPC Ltd announced in October 2022 the acquisition of OVH Energy Marketing Limited’s downstream assets. This acquisition would merge OVH Energy with NNPC Retail, a subsidiary of NNPC Ltd.

The assets acquired from the company, which operated Oando filling stations, also include a reception jetty with 240,000 metric tonnes monthly capacity and eight liquefied petroleum gas plants, three lube blending plants, three aviation depots, and 12 warehouses.

But in June 2023, PREMIUM TIMES’ investigation on the acquisition exposed the secret deals and the complicated ownership structure that left managerial control of NNPC Retail in the hands of OVH Energy Marketing.

The report also exposed that OVH Energy Marketing may not have owned as many filling stations as it claimed during the merger talks.

In addition, the report highlighted how Huub Stokman, an expatriate and former Chief Executive Officer of OVH Energy, emerged as the new Managing Director of NNPC Retail, a development that further compounded the structure of NNPC Retail.

This newspaper also found out that the acquisition of OVH Energy had turned NNPC Retail into a toxic workspace, with officials of the former taking over the latter’s running.

In July 2023, the House of Representatives, following the adoption of a motion by Miriam Onuoha (APC, Imo), directed NNPC Ltd to suspend the acquisition pending an investigation by its committee.

Consequently, the House, in September 2023, set up an ad-hoc committee with Hassan Nalabraba (APC, Nasarawa) as the chairperson to investigate the acquisition.

The ad-hoc committee requested the NNPC Ltd to furnish it with information about “registration documents/history from CAC for OVH, Nueoil, and NNPC Retail Limited (NRL), Board Resolution of NNPC Ltd on purchase of OVH, Audited Financial Statement and Management Accounts from 2015 to Date OVH, Nueoil, NRL and NNPC Ltd” and the “payroll from 2015 to date for NRL and OVH, Board Resolution of NRL/CHQ for movement of head office to Lagos and evidence of Tax Payments for NRL and OVH from 2015 to date.”

The committee also requested documents on all financial transactions associated with the acquisition, including payment records and fund transfers.

In September 2023, the then Group Chief Executive Officer of NNPC Ltd, Mele Kyari, while appearing before the committee investigating the acquisition, said NNPC Ltd operated like a private limited liability company and entered the commercial relationship with OVH to take over market shares in the downstream petroleum sector.

He said NNPC Ltd did nothing wrong in the acquisition.

Meanwhile, some NNPC Retail ‘concerned staff’, in a letter dated 25 September 2023, addressed to the Chairperson of the House Committee, and signed on their behalf by Mohammed Muazuo, noted that the request by the committee was not met.

In October 2023, Mr Nalabraba presented a report on the investigation.

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In January 2024, NNPC Ltd announced that it was unable to complete the OVH acquisition. It said it intended to apply for operating licences for the facilities under OVH Energy Marketing Limited.

In February 2024, the House of Representatives dissolved the committee investigating the controversial acquisition after the panel presented a report many lawmakers described as “suspicious and shabby.”

The task was subsequently transferred to the House Committee on Petroleum Resources (Downstream) for a fresh investigation.

PREMIUM TIMES in August 2024, reported how a court ruling had effectively dissolved the NNPC Retail and transferred its ownership to OVH Energy Marketing Limited.

This newspaper also reported that the NNPC Retail, with registration number 826223, incorporated on 21 June 2009, and Nueoil Energy with registration number 1902885, incorporated on 8 March 2022, were dissolved by the Corporate Affairs Commission (CAC), while the OVH Energy Marketing Limited with registration number 655791, incorporated on 5 June 2006 remained active.

An official search by this newspaper at the time showed that the OVH Energy Marketing Limited, with registration number 655791, incorporated on 5 June 2006, had been renamed as NNPC Retail Limited.