EXCLUSIVE: NNPCL’s secret cope with OVH leaves employees indignant, disillusioned

A wave of pleasure crammed the environment when the Nigerian Nationwide Petroleum Fee Restricted (NNPCL), final October,  introduced the acquisition of OVH Power Advertising Restricted, the corporate behind the Oando Retail model in West African international locations. The then board chairperson of NNPC Restricted, Margret Okadigbo, stated the acquisition would strengthen NNPC’s downstream enterprise portfolio and improve nationwide power safety and profitability.

NNPCL had the intention to have 1,500 filling stations, Ms Okadigbo stated, and the acquisition would convey over 380 extra filling stations operated by OVH Power underneath the NNPC Retail model in Nigeria and Togo.

“We shall be Africa’s largest petroleum product retail community,” she was quoted as saying in an NNPCL assertion.

Though the information was thrilling, the occasions trailing the acquisition of OVH Power are disillusioning. Regardless of a Freedom Of Info request, NNPCL saved particulars of the acquisition underneath wraps with many alleging shadiness. Nevertheless, PREMIUM TIMES discovered that the acquisition of OVH Power has turned NNPC Retail right into a poisonous workspace with officers of the previous taking up the working of the latter, and inflicting anger and disillusionment amongst employees.

The OVH Power acquisition

The narrative that trailed the acquisition of OVH Power by NNPCL was that the Africa-focused downstream firm is very profitable with over 300 filling stations throughout the nation and above. The straightforward interpretation of that is that with the acquisition of OVH Power, NNPC Retail would take over all its filling stations, turning it into the most important downstream firm in Africa.

To be clear, in 2015, Oando PLC, then Nigeria’s main indigenous power group, introduced a $210 million deal to alter the capital construction of its firms by merging with HV Investments II B.V., an Africa-focused personal funding agency, and the Vitol Group (“Vitol”), then often called the world’s largest unbiased dealer of power commodities.

On 30 June 2015, a brand new firm was shaped to carry pursuits in Oando Advertising Restricted and its subsidiaries by merging the 2 corporations. Oando PLC would then retain 49 per cent shareholding within the newly shaped downstream agency, with the Consortium proudly owning 49 per cent, whereas Residual, a neighborhood entity, owned simply 2 per cent. The recapitalised firms could be renamed OVH Power (“OVH”), reflecting its possession construction and the dedication of its new shareholders.

In 2022, NNPCL introduced the outright acquisition of OVH Power. By this acquisition, OVH Power could be merged with NNPC Retail, a subsidiary of NNPC Restricted.

“Our acquisition of OVH brings extra NNPC branded gas stations underneath the NNPC Retail Restricted umbrella, offering wider entry for our clients, an enriched provide chain and product availability throughout our totally different places,” the Group Chief Government Officer of NNPCL, Mele Kyari, stated in a press release to Nigerians.

Nevertheless, these with huge data of the NNPC’s internal workings informed PREMIUM TIMES that thrilling claims made to justify the acquisition of OVH Power have been exaggerated. They accused the NNPC of intentionally pushing inaccurate narratives to deceive the general public in regards to the buy of OVH Power. The insiders wouldn’t wish to be named over the concern of victimisation by the Mr Kyari-led administration.

“Solely about 94 stations are OVH owned; over 100 stations have been leased whereas others are affiliations,” a senior NNPCL official with entry to the data, informed PREMIUM TIMES. His view was corroborated by not less than two different officers with all of them saying that NNPC’s declare of proudly owning 300 new stations by buying OVH was false.

“This is without doubt one of the most shady offers ever within the oil business globally. Not even the chief vice presidents of the NNPC know the small print of the acquisition,” one different senior NNPCL official stated.

OVH Power takes over NNPC Retail

Within the eyes of the general public, the NNPC has taken over OVH Power by buying it. However in operational phrases, it’s OVH Emergy that has taken over the affairs of NNPC Retail in what one NNPC Retail official described as “the worst attainable acquisition deal ever”.

Upon the acquisition of OVH Power and its incorporation into NNPC Retail, a brand new Managing Director was to be appointed. Senior officers of NNPC Retail anticipated that one among them could be appointed the managing director. This was a given, they thought. In any case, it was an acquisition, with the bigger and extra worthwhile NNPC shopping for the smaller and loss-making OVH.

They have been incorrect.

First, the Mr Kyari-led administration staff appointed Huub Stoksman, an expatriate and former Chief Government Officer of OVH Power, as the brand new Managing Director of the NNPC Retail. Mr Kyari additionally appointed the previous Chief Working Officer (COO) of OVH Power, Mumuni Dangazau, as his Particular Adviser Downstream.

Many officers of the NNPCL, together with senior employees, imagine Mr Dangazau’s appointment successfully sidelined the Government Vice President (EVP) Downstream of the NNPC whose workplace ordinarily oversees NNPC Retail.

“The EVP has no say any extra in NNPC Retail. It’s between Stoksman, Dangazau and Kyari. He isn’t even on the board of NNPC Retail,” one official stated.

PREMIUM TIMES findings present that the EVP Downstream was once a member of the board of NNPC Retail till the Petroleum Trade Act was signed into regulation after which a brand new board was constituted.

Our findings present that the appointments of Messrs Dangazau and Stoksman by Mr Kyari stirred controversy among the many employees of NNPC Retail. Right here is why.

In March 2022, Mr Dangazau grew to become a director at Nueoil Power Restricted, a Nigerian oil firm. Earlier than then, he had been the COO of OVH Power, which is now built-in into NNPC Retail. In September 2022, Nueoil acquired OVH Power. And by October 2022, NNPCL introduced the acquisition of OVH Power. The function Mr Dangazau performed within the acquisition of OVH stays unclear for now however NNPCL officers say he was central to the deal.

For Mr Stoksman’s appointment, officers questioned why Mr Kyari felt no Nigerian was ok to steer NNPC Retail after the acquisition. They expressed fear that not one of the NNPC Retail administration staff, who had ensured the subsidiary remained worthwhile in comparison with another NNPCL subsidiaries, was ok to be appointed the managing director. The officers have been interested by why Mr Stoksman, an expatriate that led OVH, a loss-making organisation, was appointed MD of a profit-making NNPC Retail regardless of the existence of competent arms throughout the NNPCL.

Worthwhile NNPC Retail ‘consumed’ by OVH Power

Since his appointment because the Managing Director, Mr Stoksman has ensured a digital takeover of NNPC REtail by OVH, this newspaper discovered. First, he arrange a administration staff for NNPC Retail, made up of about 75 per cent of OVH employees. This led to grumblings by serving officers of the NNPC Retail. As of Monday, of the 12 administration staff members of NNPC Retail, together with Mr Stoksman, none was from the previous NNPC Retail, three from NNPCL and 9 from OVH.

“Did we purchase them or did they purchase us, how come they’re now those within the administration,” one NNPC Retail employees contemplated.

Additionally, on 5 June, Mr Stoksman summoned a employees assembly and introduced that the headquarters of the NNPC Retail could be moved to Lagos, the place OVH is headquartered.

“I couldn’t imagine my ears when he stated that,” an NNPC Retail employees who attended the Abuja digital assembly informed PREMIUM TIMES. “Solely God is aware of what deal Kyari signed with them, maybe they’re those that purchased NNPC Retail.”

On Monday, PREMIUM TIMES contacted the spokesperson of the NNPCL, Garba-Deen Muhammad, on our findings contained on this story. Mr Muhammad didn’t decide up our calls however responded to a textual content message wherein he stated he would get again to our reporter. He has but to take action on the time of this report.

NNPC Retail has been worthwhile since 2017, an unbiased verification by PREMIUM TIMES, primarily based on critiques of the monetary particulars of the 2 corporations, confirmed.

PREMIUM TIMES reviewed the monetary particulars of the 2 corporations previous to the acquisition.

In 2021, the NNPC Retail stated it bought N283.6 billion value of petrol, diesel, kerosene, gasoline and lubricants throughout its 550 stations. A rise of N83.3 billion in comparison with the N200.3 billion value of merchandise it bought in 2020, in keeping with its audited assertion for the 2021 fiscal yr.

NNPC Retail was established in 2002 as a strategic unit of NNPC Restricted, Nigeria’s mom petroleum physique. In 2009, it grew to become a restricted legal responsibility firm and a subsidiary of NNPC Restricted with only a retail station acquired from defunct Texaco Nigeria at Ikoyi, Lagos.

In 2021, the NNPC Retail stations grew from two in 2002 to 550 stations.

When it comes to profitability, NNPC Retail, with a median market share of 10 per cent, made a Revenue After Tax of N2.8 billion in 2019, N1.5 billion in 2020 and N4.9 billion in 2021. OVH, then again, with a median market share of 5 per cent, made a Revenue After Tax of N500 million in 2019, a loss after tax of N1.5 billion in 2020 and a loss after tax of N7.4 billion in 2021.

We gained’t present particulars of the acquisition — NNPC

On 9 January, PREMIUM TIMES despatched a Freedom of Info (FOI) request to the NNPC looking for particulars of the acquisition of OVH Power and asking salient questions in regards to the integration of the corporate into the NNPC Retail. A couple of weeks later, on 27 January, an legal professional of the NNPC, Tunde Adejumo, responded, saying the corporate was now not compelled to disclose the small print requested to the general public.

In his response, Mr Adejumo famous that “with the approaching to impact of Sections 53 and 54 of the Petroleum Trade Act 2021, the Nigerian Nationwide Petroleum Fee (NNPC), which was a public establishment, has transited to the NNPC Restricted, following the later’s registration as a restricted legal responsibility firm underneath the Firms and Allied Issues Act 2020”.

In different phrases, the NNPCL, by its legal professional, stated it rejected PREMIUM TIMES’ inquiries on the bottom that NNPCL is now not a public establishment. “It’s given the above-stated causes that we’re unable to accede to your request for data sought,” the NNPC legal professional stated. “Your request is at this second denied and we hope you perceive our consumer’s constraints.”

Nevertheless, opposite to Mr Adejumo’s declare, part 53 (3) of the Petroleum Trade Act (PIA) famous that “the possession of all shares within the NNPC Restricted shall be vested within the authorities at Incorporation and held by the Ministry of Finance Included and the Ministry of Petroleum Included in equal parts on behalf of the Federation”.

Due to this fact NNPCL, opposite to the declare of its lawyer, remains to be owned by the Nigerian Federation and thus certain by the FOI regulation. Additionally, the board of NNPCL was amongst these immediately dissolved by a presidential proclamation final week.

Additionally, Part 2 (7) of the FOI regulation states that “corporations wherein authorities has a controlling curiosity” are among the many establishments certain by the FOI regulation.

“Public establishments are all authorities whether or not government, legislative or judicial companies, ministries, and extra-ministerial departments of the federal government, along with all firms established by regulation and all corporations wherein authorities has a controlling curiosity, and personal corporations using public funds, offering public providers or performing public features,” the regulation states.

Appointing expatriates as heads of NNPC subsidiaries

The employees and administration of the NNPC are involved that Mr Stoksman, an expatriate, was appointed forward of many certified Nigerians. That is turning into a apply in NNPC Restricted, officers stated, inflicting disaffection and disillusion among the many employees of the corporate.

In March, NNPC Restricted appointed one other expatriate, Jean-Marc Cordier, as the top of its oil buying and selling arm, stirring controversies amongst specialists and the business’s fans.

“It’s of concern to most Nigerians that right now of our life, we’re nonetheless having a foreigner in such a strategic enterprise enterprise on this nation,” stated Bode Fadipe, a veteran power professional and the Chief Government Officer of Sage Consulting. “The query many individuals will ask is, don’t we have now Nigerians who can handle that workplace? Are the expatriates now traders within the enterprise or is it a three way partnership that permits a foreigner to carry that type of place?”

However Yemi Oke, a authorized advisor and power regulation advisor, held a unique view on the difficulty, saying the expansion of NNPC Restricted — not the nationality of the particular person main its subsidiaries — must be prioritised. Different Nigerian corporations have expatriates as workers, Mr Oke informed Punch.

“All they want is to adjust to the expatriate quota and present that there’s no native manpower expert sufficient to man that specific workplace, as a result of technical nature of the place,” he stated.

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Within the case of NNPC Retail, nevertheless, there have been many Nigerians expert sufficient to be managing administrators of the corporate together with those that led it to profitability since 2017.

Staff on the NNPC Retail accused their union of failing to problem what they imagine is the impropriety happening within the organisation. They allege compromise by the NNPC Retail chapter of the Petroleum and Pure Fuel Senior Employees Affiliation of Nigeria (PENGASSAN).

Officers of the union together with its secretary, Lumumba Okugbawa, nevertheless, declined to talk about the matter, giving totally different excuses. When PREMIUM TIMES first contacted Mr Okugbawa for remark in March, he stated he was unavailable to talk. He stated the identical factor when contacted by telephone twice this month.

President Tinubu should act now!

When President Bola Tinubu introduced the dissolution of the boards of all government-owned establishments final week, there was jubilation amongst many officers of the NNPCL with some even telling PREMIUM TIMES that they anticipated Mr Kyari to additionally exit since he’s a member of the board of NNPCL.

Though the NNPCL board was affected by the dissolution, Mr Kyari was not outrightly sacked as GCEO and thus stays in workplace. Nevertheless, many NNPC officers say they need an intensive probe of the NNPC’s offers together with the OVH acquisition.

“How a lot was OVH purchased for? Beneath what situations? What number of filling stations did they honestly personal? Why are they taking up NNPC Retail? These are among the issues a probe will reveal,” one official stated.