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Reps Launch Probe Into NNPCL’s OVH Energy Acquisition – Ugochinyere
Reps Launch Probe Into NNPCL’s OVH Energy Acquisition – Ugochinyere
....KINDLY READ THE FULL STORY HERE▶
The House of Representatives has initiated an investigation into the acquisition of OVH Energy Marketing by the Nigerian National Petroleum Corporation Limited (NNPCL), according to Hon. Ikenga Ugochinyere, Chairman of the House Committee on Downstream Petroleum……CONTINUE READING
NNPCL had previously announced its acquisition of OVH Energy Marketing, the owner and operator of Oando downstream assets, in October 2022.
Following a petition from the Nigeria Transparency Council (NTC), the House of Representatives is now scrutinizing the acquisition process. The NTC raised concerns about the payment of N140 billion for the acquisition and called for a thorough investigation.
Hon. Ikenga Ugochinyere confirmed the ongoing investigation, stating, “We received a petition and are currently studying it; we will make a comment within the shortest possible time.”
In its petition to the Reps, the NTC urged lawmakers to examine the acquisition agreement, assets acquired, and other relevant aspects of the process. The group expressed dissatisfaction with the lack of a proper investigation in previous probes and alleged non-observance of due process.
The NTC also claimed that the acquisition agreement between NNPCL Retail and OVH had not been formalized, raising suspicions about the post-acquisition proceedings. The group requested an investigation into the products provided to both entities, the destination of payments and revenue, and the legal business relationship between them.
The committee has been given a 10-day ultimatum by the NTC to commence a public investigation into the OVH Energy acquisition, or the group threatens to take the matter to court.
Earlier, Mele Kyari, the Group Chief Executive Officer of NNPCL, defended the corporation against any wrongdoing in the acquisition during an investigative hearing in September 2023. Kyari emphasized that the acquisition was a strategic business decision that had proven successful within a year, with over 900 fuel stations across the country and about 30 percent market control in the downstream sector.
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