Reps reject NNPCL’s OVH acquisition report, order fresh investigation

The House of Representatives rejected the findings of its Ad-hoc Committee regarding the suspected irregularities and corruption in the acquisition of OVH Energy Marketing by the Nigerian National Petroleum Company Limited (NNPCL) during its session on Wednesday. The report led by Hassan Abubakar Nalaraba was dismissed following a debate on Tuesday, prompted by new evidence suggesting procedural flaws in the investigation.

Surprisingly, documents authored by Huub Stokeman, a foreign national serving as the Managing Director of NNPCL Retail and formerly of OVH, surfaced. Stokeman had requested the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to renew OVH’s license before the acquisition was finalized. This revelation raised concerns about potential conflicts of interest, given that the MD of the acquired company now heads the acquiring entity.

In response, the House resolved to conduct a thorough review of the entire acquisition process, including scrutinizing acquisition agreements, financial records, and valuation reports, to ensure Nigeria’s interests were safeguarded. To execute this, the Standing Committee on Petroleum Resources (Downstream), chaired by Ikenga Imo Ugochinyere, was tasked with carrying out a forensic investigation into the multibillion-naira acquisition deal and providing prompt feedback.

This decision followed previous actions by the House, including a directive in July of the preceding year to halt the acquisition pending investigations into alleged irregularities and corruption, as raised by lawmakers like Miriam Onuoha. Onuoha had expressed concerns about discrepancies in OVH’s assets prior to the acquisition.

NNPCL had announced the acquisition of OVH Energy and its affiliate, Apapa SPM Limited, in October 2022, with the aim of bolstering its downstream business operations and ensuring national energy security.

While the Ad-hoc Committee was completing its inquiry, the Nigeria Transparency Council (NTC) lodged complaints against the NNPCL management, alleging a flawed acquisition deal involving Nueoil, OVH Energy, and the misrepresentation of assets, which it claimed cost billions of naira.

The NTC petitioned the House Committee on Petroleum Resources Downstream, chaired by Ikenga Imo Ugochinyere, urging a thorough investigation into the acquisition agreement, including the identities of Nueoil’s promoters and the swift transition of officials between Nueoil and NNPCL.

The House acknowledged the need to address various uncertainties surrounding the acquisition, including the accurate valuation of assets amid allegations of overvaluation and asset ownership disputes, such as assets allegedly under lease rather than fully owned by OVH.