The House of Representatives has directed the Nigeria National Petroleum Corporation Limited (NNPCL) to immediately suspend the acquisition of OVH Energy Marketing.
It also called on the entity to propose relocation of the NNPC Retail Head office from Abuja to Lagos pending the outcome of the investigation.
The Green Chamber also set up an ad-hoc committee to investigate the circumstances surrounding the acquisition of OVH Energy by the NNPC and report back to the House within four weeks for further legislative action.
The resolution of the House followed the adoption of a motion jointly sponsored by Hon. Miriam Onuoha, Hon. Dabo Ismal Haruna Hon. Mark Chidi Obeto, Hon. Abdullahi Aliyu, Hon. Sadiq Ango Hon. Aliyu Gara and Hon. Clement Akan moved at the plenary in Thursday
Moving the motion, Onuoha said 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.
The lawmaker noted with the recent enactment of the Petroleum Industry Act, NNPC Limited was commercialized and expected to fund its operations.
Onuoha said to achieve this feat, NNPC Limited 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;
Onuoha stressed that before the acquisition, OVH Energy claimed to have about 380 company-owned stations, a jetty (ASPM) WITH240,000 MT, 8 LPG plants, three (3) Lubricants blending plants, three aviation and fuel depots and12 warehouses, whereas they had owned only 72 stations as others were leased or owned by third parties, while all 8 LPG plants were leased, 12 lubricant warehouses listed were leased.
The lawmaker expressed 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 Managing Director 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.
Onuoha further explained that in every acquisition, if a firm buys more than 50 per cent of a target company’s shares, it effectively gains control of that company.
The lawmaker pointed out thatin this case, it appears that the NNPC has taken over OVH Energy but in operational terms, it was OVH Energy that has taken over the affairs of NNPC Retail.
Onuoha stressed 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.