Reps adopt motion suspending relocation of NNPC Office from Abuja

Elizabeth AtimeJuly 28, 202343 min

Sponsors of the motion said the lopsided appointment of the Management Team and staff of NNPC Retail Limited, and the immediate relocation of the NNPC Retail headquarters to Lagos raises doubt as to whether NNPC Limited acquired OVH Energy or the reverse.

 

 

Onuoha

 

The House of Representatives has urged the Nigeria National Petroleum Company Limited (NNPCL) to immediately suspend acquisition of OVH Energy Marketing and a proposed relocation of its Retail Head office from Abuja to Lagos pending the outcome of the investigation.

This resolution was contained in a motion on the ‘Need to Investigate the Irregularities and Alleged Corruption in the Nigerian Energy Security Provider, NNPC Retail Limited and the Acquisition of OVH Energy Marketing,’ sponsored by Rep. Miriam Onuoha and six others.

The sponsor noted that the NNPC Retail is a subsidiary of NNPC Limited saddled with the responsibility of retailing fuel and allied products to the Nigerian populace, with about 700 company-owned stations and affiliates across all states.

 

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She also pointed out that with the recent enactment of the Petroleum Industry Act (PIA), NNPC Limited was commercialised and expected to fund its operations. To achieve this feat, it deployed a plan to grow the assets of NNPC Retail Limited (NRL) which included the acquisition of other downstream companies.

The lawmaker recalled that on October 1, 2022, NNPC Limited announced the outright acquisition of OVH Energy  (OVH) and Apapa SPM Limited (an affiliate of OVH Energy) to strengthen its downstream business portfolio, enhance profitability and guarantee national energy security.

“Before the acquisition, OVH Energy claimed to have about 380 company-owned stations, a jetty (ASPM) WITH240,000 MT, Eight (8) LPG plants, three (3) Lubricants blending plants, three (3) aviation and fuel depots and twelve (12) warehouses whereas they had owned only 72 stations as others were leased or owned by third parties, all 8 LPG plants were leased, 12 lubricant warehouses listed were leased.

Also concerned that the lopsided appointment of the Management Team and staff of NNPC Retail Limited made up of about 75% of OVH staff, the appointment of an expatriate, a former MD of OVH as Managing Director ahead of many qualified Nigerians, and the immediate relocation of the NNPC Retail headquarters and NRL staff to Lagos where OVH is headquarter raises doubt as to whether NNPC Limited acquired OVH Energy or the reverse,” she noted.

 

READ ALSO: Reps to investigate NNPC’s alleged non-remittance of N2trn in revenues

 

“Cognisant that in every acquisition, if a firm buys more than 50 percent of a target company’s shares, it effectively gained control of that company but in this case, it appears that the NNPC has taken over OVH Energy but in operational terms, it is OVH Energy that has taken over the affairs of NNPC Retai,.” she added.

The lawmakers also harped on the need to ensure transparency by addressing these irregularities and nefarious activities to take over the NNPC Retail by interested parties at a critical time in the Nigerian energy sector given the overhaul of the petroleum laws, the removal of fuel subsidy and in particular the deliberate efforts to curb corruption in the energy sector.

In adopting the motion, the House resolved to set up an Ad-hoc committee to investigate the circumstances surrounding the acquisition of OVH Energy by the NNPC Limited and report back within four (4) weeks for further legislative action.

 

Elizabeth Atime

4 comments

  • Ismail Ali

    July 30, 2023 at 2:06 am

    NNPC limited is no longer father Christmas of old called NNPC ..it is purely business …time wasters should not expect any palliative from this company .no.more crude or free allocation of old .it is cash and carry ok

    Reply

  • Engr Abdulkarim Ibn Mohammad

    July 30, 2023 at 6:31 am

    News Update

    Reply

  • Sanya

    July 30, 2023 at 9:03 am

    This reps appear to be jobless.They want to start interfering in the business decisions of a commercial company.Its so funny.The purchase of OVH by NNPL was concluded over 6 months before this new assembly.So they want yo take business decisions for the company? What nonsense.

    Reply

    • Obi

      November 2, 2023 at 7:18 pm

      Are you sure that you read and understood the post. The company belongs to Nigerians which the national assembly represents. You should applaud them for doing a proper oversight function on the suspicions acquisition. I don’t know what some of you want. Do you want a private company to fleece the public of our national assets?

      Reply

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