BY YAHAYA KANA ONZONU
In a move that has raised eyebrows across the country, NNPC Retail recently acquired OVH from Nueoil Energies, a company that had itself purchased OVH only two years prior. This acquisition, which on the surface appears to be just another business transaction, has quickly morphed into a subject of controversy following a court affidavit filed six months ago. The affidavit, jointly submitted by NNPC Retail, Nueoil Energy, and OVH, seeks to rebrand NNPC Retail and Nueoil Energy as OVH, a proposal that has left many Nigerians puzzled and concerned.
Mr. Shoneye, NNPC’s Head of Corporate Communications, has attempted to assuage public concerns by stating, “The working conditions of NNPC Retail staff remain unchanged following the court order. The mandate of NNPC Retail also remains consistent, ensuring energy security across its retail outlets nationwide and continuing to serve its customers effectively.”
While this statement aims to reassure the public, it fails to address the underlying questions that have emerged from this transaction.
Unanswered questions linger. For instance, what exactly motivated the decision to acquire OVH, only to subsequently fold NNPC Retail—a profit-generating entity—into it? NNPC Retail has been a cornerstone of Nigeria’s petroleum distribution network, playing a crucial role in ensuring energy availability across the country. So why dismantle a successful operation in favor of a less transparent entity like OVH?
Nigerians are left wondering what economic benefits, if any, this arrangement could possibly offer the nation. How does the absorption of NNPC Retail into OVH improve the ongoing challenges in petroleum distribution? Given the long history of corruption and opaque dealings within NNPC, it’s hard not to suspect that something is amiss with this entire scheme.
The sequence of events surrounding this acquisition only deepens the suspicion. In January of 2023, NNPC Ltd. announced its inability to complete the OVH acquisition, stating its intent to apply for operating licenses under OVH Energy Marketing Limited. Shortly thereafter, in February, the House of Representatives disbanded a committee that was investigating the acquisition after the panel presented a report that many lawmakers described as “suspicious and shabby.” The investigation was then handed over to the House Committee on Petroleum Resources (Downstream) for further scrutiny.These developments, coupled with the recent announcement that Huub Stokman, an expatriate and former CEO of OVH Energy, has taken the reins as the new Managing Director of NNPC Retail, suggest that this plan has been in motion long before it was made public. The swift consolidation of power under Stokman points to a well-coordinated strategy that could have serious implications for Nigeria’s petroleum industry.
Nigerians deserve to know who the real players behind Nueoil Energy are, what exactly OVH Energy represents, and why the trusted NNPC Retail brand is being absorbed by a company with a questionable public profile. OVH, which operates Oando—another petroleum retail outlet that now exists mostly in name only—seems an odd choice for a merger with a well-established entity like NNPC Retail.
In a country where public institutions are often marred by corruption, the lack of transparency in this deal is alarming. The government and NNPC owe it to the public to provide clear, honest answers. Without this transparency, it’s impossible to avoid the conclusion that this acquisition is less about business and more about serving the interests of a select few at the expense of the Nigerian people.
Until these questions are answered, the stench of potential fraud will continue to linger over this dubious economic arrangement. The Nigerian public, who rely on NNPC Retail for consistent energy supply, deserve much better than being kept in the dark about decisions that impact the nation’s energy future.
Yahaya Kana Onzonu writes from Kana in Nasarawa LGA of Nasarawa state.
