TheCable

Mele Kyari, the group chief executive officer of the Nigerian National Petroleum Company (NNPC) Limited, said the acquisition of OVH Energy raised the firm’s profit to N18.4 billion in the first quarter (Q1) of 2023.

Kyari spoke on Friday while addressing the house of representatives ad hoc committee on the OVH acquisition, according to a statement posted on X, formerly Twitter.

He said NNPC Retail was able to improve its profit and grow its market share since the acquisition in 2022.

The NNPC GCEO said before the acquisition of OVH Energy and its Oando branded retail station, the national oil firm’s profit stood at N6.93 billion in 2021.

“This is all as a result of the acquisition,” Kyari told the lawmakers.

ADDRESSING ALLEGATIONS AGAINST OVH

Prior to the hearing, In July, the lower chamber had ordered the NNPC to suspend the deal to enable the lawmakers to investigate irregularities and alleged corruption in NNPC Retail Limited and the acquisition of OVH Energy Marketing.

Some of the allegations are connected to the number of filling stations NNPC took over from OVH, and the ownership and working structure of NNPC Retail after the acquisition.

In October 2022, NNPC said the deal would add more than 380 filling stations controlled by OVH in Nigeria and Togo to its portfolio.

However, a media report said OVH only owned 94 stations, with more than 100 stations penned as leased.

Also, the report alleged that the ownership structure of NNPC Limited has become complicated, with Huub Stoksman, an expatriate and former CEO of OVH Energy, taking over as managing director of NNPC Retail.

It added that OVH officials have taken over NNPC Retail, resulting in a toxic environment.

But, without being specific, Kyari denied allegations that trailed the acquisition.

While the deal has gone ahead since its announcement last year despite the house of representatives’ directive, Kyari told the green chamber committee that the “allegations against the acquisition of OVH are painful because they are not true”.

Although Kyari acknowledged that the acquisition came with its own challenges, he said the NNPC is addressing them.

“In every merger and acquisition, there is a transition period,” he said.

“We are rising to those challenges brought about by the transition. We are also ensuring that none of our staff at NNPC Retail is victimized. Staff are placed where they are best fit towards optimum performance.”

According to the NNPC chief, the oil company is duty-bound by the Petroleum Industry Act (PIA) to increase its market share and guarantee national energy security.