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Business News of Saturday, 16 September 2023


'We are rising' - Mele Kyari meets lawmakers, reveals NNPC retail made over N18bn profit in Q1, 2023

Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Company Limited (NNPCL)

The Nigerian National Petroleum Company Limited (NNPCL) retail subsidiary has recorded a profit of N18.4 billion in the first quarter of 2023.

Mele Kyari, the Group's Chief Executive Officer of NNPCL, disclosed this while addressing the House of Representatives Ad-Hoc Committee on Friday, September 15, in Abuja.

Kyari appeared before the lawmakers to defend NNPCL's acquisition of OVH Energy Marketing (OVHEM), owner and operator of the Oando downstream assets (retail brand).

Following the acquisition in 2022, OVH Energy's 380 filling stations were merged with NNPC Retail Limited, Punch reports.

The NNPCL boss, during the discussion with lawmakers, stressed that OVH Energy's acquisition helped drive up its retail subsidiary earnings.

The conversation between Kyari and lawmakers was shared by NNPCL on its official X page, and it reads:

“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 victimised. Staff are placed where they are best fit towards optimum performance.”

In another report, Mele Kyari, the Group Managing Director of the Nigeria National Petroleum Company Limited (NNPCL), promised that the Port Harcourt refinery would be ready by March 2023.

He made the promise before the House of Representatives on the resumption of the investigation into the state of the country’s refineries.

Kyari, represented by the general manager of Refineries & Petrochemicals, Mustapha Yakubu, reaffirmed the expected completion date to the lawmakers.