Former Vice President Atiku Abubakar has called on the federal government to clarify why Oando Plc, which he claims is owned by the president’s nephew, received expedited approval to acquire the onshore assets of Agip and Eni, while other transactions, such as those involving Shell/Renaissance and Mobil/Seplat, face ongoing delays.
On September 4, 2023, Oando Plc announced it had reached an agreement with Eni, the Italian oil giant, to acquire a 100 percent stake in its subsidiary, the Nigerian Agip Oil Company Limited (NAOC Ltd). Eni had previously received regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for this transaction on July 24, 2023. Oando confirmed on August 22 that it had completed the acquisition for $783 million.
In a statement released on Sunday by Phrank Shaibu, Abubakar’s special assistant on public communication, the former vice president criticized what he described as “undue and preferential treatment” given to Oando in the oil and gas sector, which he believes harms more competent investors. He also condemned the House of Representatives for its lack of action regarding the Nigerian National Petroleum Company (NNPC) Limited, accusing it of “mortgaging the country’s national oil assets to vested interests.”
Abubakar highlighted that the NUPRC approved the ENI/AGIP divestment to Oando within just eight months, while litigation against Shell/ENI in the OPL 245 scandal was controversially withdrawn. He noted that the SEPLAT and Renaissance deals for Mobil’s onshore assets have been stalled for three years, with the consent letter still pending on President Tinubu’s desk.
Further criticizing the current government, Abubakar denounced what he termed a “sham subsidy regime,” citing the NNPC’s recent financial statements. He accused President Tinubu of dishonesty regarding fuel subsidy removal and suggested that the subsidy regime has become a conduit for funding the 2027 election.
Abubakar also disputed the NNPC’s recent statements, alleging that the organization misled the public about its actions. He pointed out that the NNPC had appointed Huub Stoksman and Mumuni Dangazau from OVH Energy to significant positions within the organization before the acquisition of OVH assets was completed.
In July 2023, the House of Representatives, following a motion by Miriam Onuoha, directed NNPC to suspend the OVH acquisition pending an investigation. The committee requested detailed documentation on the transaction, including registration documents, financial statements, and tax payments. According to Abubakar, the NNPC ignored these requests and proceeded with the transfer of ownership, thereby compromising the future of Nigerians. Despite the sector’s issues, he criticized the heads of NNPC, NUPRC, and NMDPRA for retaining their positions, alleging they are fulfilling the president’s mandate.
(cable)