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Following the controversy that trailed the sale of the 28% worth N17.5 billion to Zenon Oil Petroleum Ltd at a rock bottom price of N17 billion, which was deemed less than transparent, the federal Government should reverse the sale immediately.
It was alleged Chief Olusegun Obasanjo, the immediate past President sold the shares to himself as Femi Otedola, Chairman Zenon Oil is said to be his front in the business circle. The Independent Petroleum Marketers Association of Nigeria (IPMAN) called on the former President at the eve of his departure in the alleged illegal sale of the Nigerian National Petroleum Corporation, (NNPC) shares in the African Petroleum to Zenon Oil saying it was a breach of the law.
Quoting the African Gazette No. 20 Volume 93 of the Federal Republic, the Independent Marketers described the sale as lacking in transparency and due process. IPAN asserted that the sale was conducted contrary to the rules of competitive public bidding. No advertisement news was placed before the sales were effected; and the Bureau for Public Enterprises denied knowledge of the transaction. It was on record that Global Fleet Group purportedly paid the sum of N17.5 billion for an ascertained number of shares which sales was eventually withdrawn or cancelled. Surprisingly Zenon Oil paid N17 billion for the same number of shares with a whooping N500 million difference.
Members of IPMAN have invested over N250 billion in the down stream sector of the oil industry in Nigeria. Some experts form the petroleum industry described the sale of the AP shares put it as a parting gift to a crony of Olusegun Obasanjo. The hurried transaction was said to be one of the greatest corrupt acts left behind as an ignominious legacy of the Lord of Ota.
The Chairman, Shareholders Trustees Association of Nigeria, for one said, if the President were transparent, he would have routed the sales through the Bureau of Public Enterprises, (BPE) which would have been the legal and due process. Mr. Jimoh Ibrahim whose company, Global Fleet Group already operates 140 AP fuel stations out of its total 207 across the nation, had already paid N17.5 billion but the former President overruled the transaction and offered the prime shares for N17 billion. Alhaji Danladi Pasali and Dibu Aderibigbe, of IPMAN and Alhaji Mukhtar Mukhtar of Shareholders Trustees Association of Nigeria respectively variously condemned this in copious press releases and conferences. One vocal virulent politician jokingly said “Obasanjo took AP from Vice President Atiku Abubakar and fraudulently gave it to himself. Zenon Petroleum retail network is limited.
The Nation’s fuel market, worth more than $2 billion annually is dominated by a handful of multinational and local retailers including AP, which is one of the largest, but which fortunes have declined since the Government sold a 30 percent stake in 2001.
The Government earlier sold its 30 percent stake in the company to Sadig Petroleum but Sadiq decided to sell the stake to a unit of Afribank Plc. ASSEMAL, after accusing the privatization agency, Bureau of Private Enterprise(BPE) of concealing AP debts worth N26 billion. Capital market watchers have criticized the sale of the shares to Zenon on the basis that it negated the much professed due diligence and transparency posturing of the Federal Government.
Chairman Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie described the transaction as fraudulent adding that it is sending wrong signals to the International Community as Nigerians should be seen as dubious.
The bottom line is that these shares should be returned to Nigerian National Petroleum Corporation immediately.
Nigeria Stock Exchange (NSE) came under the hammer of criticism for derailing from transparency by not allowing the shares to go to existing shareholders.
ASSEMAL, the core Investor in AP after Sadiq Petroleum sold its 30 percent stake in AP to the Afribank Company was expected to have been given preference over all other bidders in the deal. The NNPC had acquired the equity interest through its staff pension fund in 2005 through a debt-swap of over N10 billion, AP owed the corporation. The acquisition was subsequently gazetted and slated for sale to the Nigerian public. The unilateral transfer of the NNPC equity to Femi Otedola may have set him on collision course with many forces. He should withdraw honourably before his name becomes odious to the deciphering public.
As Aliko Dangote and Femi Otedola withdraw shamefully from Kaduna Petro- chemical refinery and PortHarcourt refinery, Zenon Oil should dump these shares back to NNPC.
Some persons and people thrive on reaping, where they have not sown. I will end this call with the latest report from THE PUNCH; Monday July 23, 2007 Page 29; AP TO PAY DIVIDEND AFTER SEVEN YEARS; African Petroleum Plc is set to pay dividend to shareholders for the first time in seven years following an improvement in its operating results. It last paid dividend in 1999 and issued a bonus share in 2004
The Directors of the company have recommended a dividend of N1 per share for the year ended December 31, 2006. The recommendation resulted from its impressive financial results made available by the Nigeria Stock Exchange on Friday 20th July 2007.
AP recorded a turnover of N81.93bn in 2006, showing an increase of 86 percent, before tax rose by 51 percent from N5.19bn to N10.59bn in 2006, while net profit was N2.44bn compared with a loss of N3.37bn in 2005.
The performance was in line with the promise by the Managing Director /Chief Executive, AP, Mr. Zira Maigadi that investors should expect improved results.
He said at the beginning of the year that the company was on its way to recovery path after the crisis caused by heavy debt that plagued the company since 2000.
The added that the company’s operators were halted for about five months in 2005 following the disconnection of products supplies by the Nigerian National Petroleum Corporation due to the unresolved AP and NNPC post – privatization debt issue.
Apart from that, Maigadi who is also Wali Michika said that AP also faced the challenge of meeting up with its obligations to banks and financial institutions. However, the problem was resolved with the equity conversion for the NNPC by AP in December 2005 and a new board and management emerged for the company in April 2006, he said.
According to him, having overcome those challenges the management made efforts, which led to a gross profit of N7.15bn for the third quarter ended September 30, 2006. Maigadi said “this performance is a testimony to the new level of professionalism, purposefulness, transparency and value driven vision that is the hallmark of the repositioned African Petroleum.
From the emerging October results; we are confident that the tempo of this superlative performance in the last quarter of the year will result in better performance.
We also want to assure; investing community that we are now better placed to regain our position in the country of publicly quoted companies delivering superior return to shareholders.
It has been so with us that some always want to reap where they have not sown. Reverse the illegal sales. Return the shares to Nigerian National Petroleum Corporation, in public interests. The shares belong to the public, not an individual.
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