Unseen Forces at Play: New Revelations in the Battle Over Dangote Refinery

In 2022, the Nigerian National Petroleum Corporation (NNPC) announced its acquisition of OVH Energy, a company owned by Oando Plc, which operates numerous Oando filling stations. The NNPC declared that OVH Energy would merge with NNPC Limited, the arm responsible for refining, marketing, and distributing petroleum products.

To the average Nigerian, this seemed like a straightforward corporate acquisition. However, recent investigations suggest a more complex reality: OVH Energy may have, in fact, acquired NNPC Retail.

In June 2023, barely a month into President Bola Ahmed Tinubu‘s tenure, OVH assumed control of NNPC Limited’s operations. A Premium Times investigation involving interviews with key NNPC personnel revealed that OVH effectively runs NNPC Retail. Notably, Huub Stokman, an expatriate and the former CEO of OVH, now serves as the Managing Director of NNPC Retail, replacing the Nigerian Margaret Okadigbo.

A senior NNPC official described this acquisition as “the worst possible deal ever.” Despite this, in September 2023, NNPC’s Managing Director Mele Kyari defended the arrangement, claiming that it led to a record profit of N18.4 billion for NNPC.

The controversy deepens with NNPC’s financial manoeuvres related to the Dangote Refinery. NNPC needed to borrow $1.036 billion to secure just 7.2% of the initially agreed 20% shares in the refinery. Less than nine months after announcing record profits, Kyari admitted that NNPC lacked the funds to purchase the remaining 12.8% of the shares. The corporation now seeks another $2 billion loan, raising eyebrows and allegations of mismanagement and possible corruption.

Amidst these financial controversies, NNPC and Aliko Dangote are now embroiled in a heated dispute over the refinery.

OVH Energy’s connection with Wale Tinubu, CEO of Oando and nephew of President Bola Ahmed Tinubu, adds another layer to this saga. Their business relationship dates back to 2002, when Bola Tinubu, then governor of Lagos State, established Alpha-Beta, a company often accused of facilitating the misappropriation of public funds.

Oando has frequently been implicated as a conduit for Bola Tinubu‘s alleged financial machinations, particularly in the infamous Alpha-Beta case, where he was accused of siphoning billions of dollars.

With all accusing fingers pointing to the highest echelons of power in Aso Rock, the unfolding events around the Dangote Refinery reveal a tale of corporate intrigue, political connections, and a complex web of financial dealings. More details are expected to emerge as the battle continues.