Mele Kyari, the Group Chief Executive Officer of the Nigeria National Petroleum Company Limited (NNPCL), has defended the organization’s acquisition of OVH Energy, asserting that it was a sound business decision that has already yielded positive results.....KINDLY READ THE FULL STORY HERE▶
In less than one year after the acquisition, NNPCL has reportedly generated a profit of N18.4 billion in the first quarter of 2023….CONTINUE READING
Speaking at the resumed investigative hearing of the Ad-hoc Committee in Abuja, Kyari explained that the creation of NNPCL was a result of the passage of the Petroleum Industries Act (PIA), which established a commercial oil company to work for the benefit of all Nigerians.
Under the PIA, the federation’s citizens are considered shareholders in the company, and NNPCL is mandated to ensure energy security, a crucial aspect of national security.
Kyari highlighted the need for NNPCL to have control over the downstream sector of the economy to fulfill its responsibilities as prescribed by the law.
He pointed out that the company’s transformation, both before and after the PIA, has turned it into a profitable entity, in contrast to previous years of losses.
The CEO emphasized that the acquisition of OVH Energy was a strategic move to bridge the gap in NNPCL’s organic growth. Prior to the acquisition, NNPCL had only 48 owned fuel stations, along with various affiliated companies across the country, some of which were non-functional. The acquisition allowed NNPCL to expand its footprint and meet the requirements of the PIA.
Kyari also addressed concerns about the transparency of the acquisition process, stating that it followed established processes and procedures under the Companies and Allied Matters Act, the PIA, and the company’s memorandum and articles of association.
In terms of the gains achieved from the acquisition, Kyari highlighted substantial growth, with NNPCL recording a profit of N18.4 billion in the first quarter of 2023, compared to the highest profit of N6.593 billion in 2021 before the acquisition.
This growth is attributed to the expansion of the company’s footprint, enhanced brand recognition, and increased market share.
