The Nigerian National Petroleum Company Limited (NNPCL) has officially transferred all its retained assets to OVH Energy Marketing Limited, the operator of Oando Petroleum. OVH is owned by Wale Tinubu, a nephew of President Bola Tinubu.
This transfer followed a court approval that now allows NNPCL to hand over its retail ownership and assets to OVH. NNPCL Retail has been the primary importer of petrol in Nigeria.
In October 2022, NNPCL announced the acquisition of OVH Energy Marketing, the company managing Oando’s downstream assets, from Nueoil Energy Limited. This acquisition came just a month after Nueoil Energy itself had acquired OVH, setting the stage for the current transfer.
The transaction is seen as a strategic move by NNPCL to capitalize on OVH’s established network and business model, enhancing the state-owned company’s reach across Nigeria.
However, on June 24, NNPCL, OVH, and Nueoil jointly filed a petition before Justice C.J. Aneke of the Federal High Court in Lagos. They requested the court to grant eight specific orders, including the dissolution of NNPC Retail and Nueoil without winding up their operations. The petition also sought approval for the transfer of their assets to OVH Energy Marketing. Justice Aneke granted all eight orders, making the merger effective from January 2024.
The manner in which this transaction was conducted has sparked controversy. An NNPC Retail employee described the deal as “criminal.” Further investigations by Premium Times uncovered discrepancies in the number of filling stations claimed by OVH Energy during merger negotiations. Moreover, Huub Stokman, the former CEO of OVH Energy, has been appointed as NNPC Retail’s new Managing Director, further complicating the deal.
