NNPC Takeover: Inside the Strategic Power Shift to Tinubu’s Nephew

The recent restructuring within Nigeria’s National Petroleum Corporation (NNPC) has raised several questions, particularly regarding why President Bola Tinubu retained Mele Kyari as Managing Director while dismissing all other NNPC board members. This move has sparked speculation, especially in light of the controversial acquisition of OVH Energy, a company owned by Wale Tinubu, the president’s nephew.

In October 2022, the NNPC announced the acquisition of OVH Energy, branding it as the Accelerated Network Expansion (ANEX) Initiative. The deal, announced by then-board chairman Margaret Okadigbo, claimed that NNPC Retail would take over 380 filling stations owned by OVH, along with other assets, including a jetty, LPG plants, blending plants, aviation depots, and warehouses.

However, NNPC insiders have challenged the official narrative, suggesting that OVH owns only 94 filling stations, with the remaining being leased or affiliated. The real concern is the implication that OVH acquired NNPC Retail rather than the other way around, placing Wale Tinubu‘s company at the helm of Nigeria’s downstream sector, which includes refining and fuel distribution.

This suspicion was fueled by changes in NNPC Retail’s management shortly after President Tinubu assumed office. In July 2023, Huub Stokman, a former CEO of OVH Energy, was quietly appointed as the MD of NNPC Retail. Simultaneously, Mumuni Dagazau, previously the Chief Operating Officer of OVH Energy, was made the Special Adviser Downstream to Mele Kyari, a role traditionally held by the Executive Vice President (EVP) Downstream of NNPC.

Dagazau‘s involvement in this 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 entangling Dagazau in the unfolding events.

The management overhaul of NNPC in July 2023, followed by the November 2023 board appointments, only deepened the intrigue. While President Tinubu dismissed all previous board members, he retained Mele Kyari as MD, an unusual move given that no NNPC MD has served more than four years since the return to civilian rule. Kyari’s survival in this shakeup may be linked to his close relationships with key figures like Wale Tinubu, Femi Gbajabiamila, and Pius Akinyelure, all of whom are closely connected to the president.

The leaked details of the NNPC-OVH deal have caused significant concern within the NNPC, with some officials describing it as a criminal act. To legitimize the arrangement, the parties involved rushed to court to formalize the transfer of NNPC Retail’s ownership and assets to OVH. Justice Chukwujekwu Joseph Aneke of the Federal High Court in Lagos approved the petition, allowing OVH to take legal control of NNPC’s operations, including fuel distribution across Nigeria.

This move consolidates OVH’s control over NNPC, with OVH executives now holding 75% of key roles within the organization. Moreover, NNPC Retail’s headquarters have been relocated from Abuja to Lagos, OVH’s base of operations, further indicating the extent of the takeover.

The events surrounding the NNPC’s restructuring reveal a strategic consolidation of power, with a cabal serving the interests of one “Oga at the Top” firmly in control of Nigeria’s oil sector.