Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), delivered a compelling testimony today before the House of Representatives Ad-Hoc Committee on the OVH Energy acquisition, shedding new light on the company’s remarkable success story post-merger.
In a candid statement, Kyari enthusiastically shared, “We are happy with the acquisition of OVH. For instance, in 2021 before the acquisition, NNPC Retail made N6.93 billion profit. But in one quarter after the acquisition (1st Qtr 2023), we made a profit of N18.4 billion. This is all as a result of the acquisition.”
Kyari’s remarks came in response to allegations surrounding the acquisition that have recently surfaced. He emphasized that these allegations are unfounded and stated, “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.”
NNPC Retail’s strategic acquisition of OVH Energy in 2022 was a transformative move, as it added 380 filling stations to the NNPC’s existing network, bringing the total to nearly 1,500 retail stations.
The acquisition also included significant assets such as a reception jetty with a monthly capacity of 240,000 metric tons, 8 liquefied petroleum gas plants, 3 lube blending plants, 3 aviation depots, and 12 warehouses.
House Majority Leader, Hon. Prof Julius Ihoenvbere, who represented the Speaker, acknowledged that NNPCL’s activities are no longer confined to the government sector, stating, “NNPCL is not a government agency anymore. But whatever the company does attracts public attention.”
In response to concerns about potential staff displacement during the merger, Kyari reassured, “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.”
This testimony sheds fresh light on the success of the OVH Energy acquisition and reinforces NNPCL’s commitment to enhancing its market share, ensuring national energy security, and debunking allegations that have recently clouded this significant milestone in Nigeria’s energy industry.