Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) has said that NNPC Retail made N18.4 billion in the first quarter of 2023, after acquiring OVH Energy in 2022.
Kyari said this while addressing the House of Representatives Ad-Hoc Committee on the OVH Acquisition by the NNPCL on Friday, September 15, in Abuja.
This information was shared by the company via its official Twitter account.
In his opening remarks, the House Majority Leader, Hon. Prof Julius Ihoenvbere, who represented the Speaker, said the NNPCL is not a government agency anymore. But whatever the company does attracts public attention.
Meanwhile, Mele Kyari said:
- “We are happy with the acquisition of OVH. For instance, in 2021 before the acquisition, NNPC Retail made N6.93bn profit. But in one quarter after the acquisition (1st Qtr 2023), we made a profit of N18.4bn. This is all as a result of the acquisition.
- “NNPCL is a creation of the federation with over 200 million Nigerians as shareholders. The Petroleum Industry Act (PIA) also grants us the mandate to guarantee national energy security. On this basis, it is duty-bound on us to increase our market share.
- “Allegations against the acquisition of OVH are painful because they are not true. We believe that the only way we can grow our market share is by expanding our business. Since the acquisition of OVH, the profit margin of NNPC Retail has jumped.
- “In every merger and acquisition, there is a transition period. We are rising to those challenges brought about by the transition. We are also ensuring that none of our staff at NNPC Retail is victimized. Staff are placed where they are best fit towards optimum performance.”
What you should know
In October 2022, Nigerian National Petroleum Corporation (NNPC) Limited acquired Oando retail brand, OVH Energy Marketing. OVH Energy is the owner and operator of the Oando branded retail service stations. OVH was merged with NNPC Retail Limited.
NNPC Limited and OVH Energy made the announcement on October 1. OVH Energy said that the strategic move aims to create the leading downstream energy company in Nigeria and West Africa.
The acquisition added 380 filling stations to what the NNPC had, which amounted to almost 1,500 retail stations at the time.
Other assets included a reception jetty with 240,000 metric tons monthly capacity, 8 liquefied petroleum gas plants, 3 lube blending plants, 3 aviation depots, and 12 warehouses.
In July 2023, the House of Representatives said it would probe the acquisition over claims that it was OVH Energy that had acquired NNPC Retail instead of the other way around.