In a surprising turn of events, the House of Representatives has declined to accept the report submitted by the Ad-hoc Committee, chaired by Hon. Hassan Abubakar Nalaraba, which investigated alleged irregularities and corruption in the acquisition of OVH Energy Marketing by the Nigerian National Petrolatum Company Limited (NNPCL).
The rejection came after startling new evidence surfaced, indicating that the acquisition process was marred by irregularities. The NNPCL, accused of engaging in a questionable acquisition deal involving Nueoil and OVH Energy, now faces intense scrutiny. The House was taken aback by documents presented by Huub Stokeman, the MD of NNPCL Retail and former MD of OVH Energy. Stokeman’s correspondence to the NMDPRA revealed a conflict of interest, as he requested the renewal of OVH Energy’s license even before the official acquisition, raising suspicions about the transparency of the process.
The House of Representatives has mandated the Standing Committee on Petroleum, Downstream, chaired by Hon. Barr. Ikenga Imo Ugochinyere, to conduct a thorough forensic investigation into the acquisition deal, valued at hundreds of billions of Naira. The directive emphasizes the need to scrutinize the acquisition agreement’s details and terms, financials, and valuation reports to ensure transparency and safeguard the interests of the Nigerian public.
The controversy surrounding the acquisition was initiated on October 1, 2022, when NNPCL announced the outright acquisition of OVH Energy to fortify its downstream business portfolio and ensure national energy security. Subsequently, an Ad-hoc Committee, led by Hon. Nalaraba, was constituted to probe alleged irregularities and corruption in the acquisition.
However, the Nigeria Transparency Council (NTC) raised concerns and dragged the NNPCL management to the Committee on Downstream over the purported shady acquisition deal. The NTC alleges that the deal, involving Nueoil and OVH Energy, incurred costs of hundreds of billions of Naira and was plagued by overblown assets. The group disputes NNPCL’s claims of over 30 percent control of the downstream sector and profits of N18.4 billion in the first quarter of 2023, citing a lack of documentary evidence.
In a petition to the Chairman of the House Committee on Petroleum Resources Downstream, Hon. Barr. Ikenga Imo Ugochinyere, the NTC urged lawmakers to investigate the acquisition agreement, alleged overpriced assets, the promoters of Nueoil, and the circumstances surrounding the swift acquisition of OVH by NNPCL. The group called for the suspension of NNPCL leadership pending an unbiased investigation and expressed dissatisfaction with the earlier probe’s lack of detailed investigation and oversight.
The NTC also highlighted the failure to formalize the acquisition agreement, questioning why OVH continues to operate independently, receiving products and revenue in its name. The group insisted on a public investigation and threatened legal action if the Committee fails to act promptly.
With the rejection of the Ad-hoc Committee’s report, the House of Representatives aims to address the emerging evidence and ensure a thorough, unbiased investigation into the OVH Energy acquisition, recognizing the potential abuse of office, conspiracy, corruption, and mismanagement of public funds in the alleged overpriced and secretive deal. Analysts and anti-corruption groups commend the House for reopening the investigation and call for a detailed and transparent examination of the controversial transaction.