The recent restructuring of the Nigerian National Petroleum Corporation (NNPC) has raised a number of questions, particularly as to why President Bola Tinubu retained Mele Kyari as CEO while dismissing all other NNPC board members. The move has sparked speculation, especially in the context of the controversial acquisition of OVH Energy, a company owned by Wale Tinubu, the president’s nephew.
In October 2022, NNPC announced the acquisition of OVH Energy, naming the company Rapid network expansion (ANEX) Initiative. The deal, announced by then board chairwoman Margaret Okadigbo, stated that NNPC Retail would take over 380 petrol stations owned by OVH, along with other assets, including a jetty, LPG plant, blending plant, air cargo terminal and warehouse.
However, NNPC insiders have challenged the official narrative, claiming that OVH only owns 94 petrol stations, with the rest leased or affiliated. The real concern is the implication that OVH acquired NNPC Retail rather than the other way around, giving Wale Tinubu’s company a leadership position in Nigeria’s downstream sector, which includes refining and fuel distribution.
This suspicion was fueled by changes in the management of NNPC Retail shortly after President Tinubu assumed office. In July 2023, Huub Stokman, former CEO of OVH Energy, was quietly appointed CEO of NNPC Retail. At the same time, Mumuni Dagazau, formerly CEO of OVH Energy, was appointed Special Advisor Downstream to Mele Kyari, a role traditionally held by the Executive Vice President (EVP) Downstream of NNPC.
Dagazau’s involvement in the deal is notable. After leaving OVH Energy, he joined Nueoil Energy Limited as a director, only for OVH to acquire Nueoil in September 2022. A month later, NNPC Retail announced its acquisition of OVH, further embroiling Dagazau in the unfolding events.
The NNPC management reshuffle in July 2023, followed by the appointment of the board in November 2023, only deepened the fascination. While President Tinubu had fired all previous board members, he retained Mele Kyari as MD, an unusual move as no NNPC MD had served for more than four years since the return to civilian rule. Kyari’s survival during this reshuffle could be linked to his close ties with key figures such as Wale Tinubu, Femi Gbajabiamila and Pius Akinyelure, all of whom have close ties to the president.
The leaked details of the NNPC-OVH deal have caused considerable concern within the NNPC, with some officials describing it as a criminal act. In a bid to legitimize the deal, the parties involved rushed to court to formalize the transfer of ownership and assets of NNPC Retail to OVH. Justice Chukwujekwu Joseph Aneke of the Federal Court in Lagos granted the petition, allowing OVH to legally take control of NNPC’s operations, including fuel distribution across Nigeria.
The move consolidates OVH’s control over NNPC, with OVH executives now holding 75 percent of key roles in the organization. Furthermore, NNPC Retail’s headquarters have been moved from Abuja to Lagos, OVH’s base of operations, further indicating the extent of the takeover.
The events surrounding the restructuring of the NNPC demonstrate a strategic consolidation of power, with one group serving the interests of a “Oga at the top” tight control of Nigeria’s oil industry.
