Of President Tinubu Sundry Sins: Part 4 -Sin Of State Capture

In Part III of my article series on PBAT’s administration since assumption of office, I considered President Tinubu’s sins of nepotism amongst his sundry sins. I argued that PBAT’s administration has been marked by varying cases of nepotism. I proceeded to cite varying examples of key national appointments and confirmations of top positions with the Federal Government of Nigeria as evidence of nepotism. I also highlighted a very significant but highly questionable contract award to PBAT’s long time ally – Mr Gilbert Chagoury – as another example of nepotism - considering the award of the NGN15 trillion contract sum to a company linked to Mr Seyi Tinubu (Mr President’s son) and President Tinubu’s long time friend and/or (business) ally – Mr Gilbert Chagoury. The award of the much touted Lagos-Calabar Coastal highway project contract to Mr. Gilbert Chagoury’s company, one in which Mr. Seyi Tinubu has been said to be sitting on its board - as of the time of the contract award is not only gravely concerning but disturbing as it would appear President Tinubu has little or no regard for Nigerians, the rule of law as well as extant laws relating to public procurement and award of infrastructure project of great national significance.

Quite instructively and beyond tagging the NGN15 trillion contract sum award as nepotic, devoid of any competitive tendering/bidding and arguably in contravention of extant procurement laws, the argument could equally be made that the same contract, particularly considering the manner in which it was awarded and the immediate damages occasioned to several landmark businesses including the Owner of the popular Landmark Beach amongst others - was another example of PBAT attempting to put into play - the long wielded tool of state capture - in a bid to directly or indirectly enrich himself, business/political associates or allies, immediate family members or relatives and reward those loyal to him at the expense of others. PBAT again reinforces the long had understanding - that one of the core problems of Nigeria - is that of leaders with the right political will to do what is good for majority of citizens - even at the expense of a minority oligarch - who are after nothing - but their selfish interests.

Little wonder President Obasanjo is credited to have said in a November 2024 Independent Newspaper publication, while decrying state capture under PBAT, that state capture is “one of the most pervasive forms of corruption, a situation where powerful individuals, institutions, companies, or groups within or outside a country use corruption to shape a nation’s policies, legal environment, and economy, to benefit their own private interests.” Arguing that state capture may not always overt and obvious as it can also arise from the more subtle close alignment of interests between business and political elites through family ties, friendships, and the intertwined ownership of economic assets, former President Olusegun Obasanjo GCFR was credited to have said in the November 2024 Independent Newspaper publication that “[W]hat is happening in Nigeria - right before our eyes – is state capture: The purchase of national assets by political elites – and their family members – at bargain prices, the allocation of national resources – minerals, land, and even human resources – to local, regional, and international actors...”

Relying on the above definition or better still, description on what would constitute state capture in a country like ours, one could argued that state capture in Nigeria can be said to have occurred where: (a) powerful individuals, corporate entities or otherwise – both within and outside Nigeria - attempt to shape Nigeria’s policies, economy, legal framework and other key government system(s) or institutions for their own benefits or selfish interests; (b) national assets – by whatever named called - are purchased or transferred or acquired in whatever manner by political elites, their family members or business associates for the advancement of their driven agenda, interest or purpose. Flowing from this, one then could argue, for instance, that the purported acquisition or takeover(?) of NNPC Retail Limited - the downstream arm of the Nigerian National Petroleum Company (NNPC) Limited –through a the Special Purpose Vehicle (SPV) known as OVH Energy – largely associated with PBAT’s relatives, Mr Wale Tinubu of Oando Plc but now said to have been acquired by Helios Investment Partners – could be said to pass as a case study for state capture. To an average Nigerian, OVH Energy, having to take control of the day-to-day operations of the NNPC Retail Limited – an entity which was performing well as opposed to other entities of NNPC Ltd as of the time of acquisition – with Oando Plc arguably in relatively bad financial position as of the time - is not only in bad national taste and wrongful exercise of powers in manipulating the acquisition of a national asset by all parties involved, but also leaves to question how the country got to a point where major national assets like the Downstream arm of the foremost NNPC Limited is now an extension of Oando – same Oando that was recently reported to have acquired all the oil and gas assets belonging to Nigerian Agip Oil Company (NAOC) – barely after President Tinubu assumed office. How convenient!

While the NNPC has since clarified the issue further to the allegations made by a former Vice President, Mr Atiku Abubakar condemning the ‘hijack of the NNPC’ and the allegation that the NNPC Ltd Chief Executive - Mr Mele Kyari - retained his job for overseeing the completion of the acquisition of NNPC Retail by OVH - a firm he alleged that Mr Wale Tinubu was said to have held 49 per cent stake as of the time leading to the acquisition, it will be difficult for President Tinubu, Mr Wale Tinubu, Oando Plc, OVH and the NNPC Ltd under Mr Mele Kyari to convince Nigerians that: (a) there was no trading of insider information leading to the said acquisition such as would have given Oando Plc and/or OVH some undue advantage in a deal of such national significance and largely affects as interests as Nigerian citizens; (b) there were no questionable dealings such that puts the leadership of the NNPC Ltd in a position where it allowed itself to be strong armed by an entity closely associated to the current’s President Tinubu’s relative – into a rather unprecedented deal that allowed it to submit control of the NNPC Retail Ltd to the Oando/OVH Energy Team despite the vast human resources at the NNPC Ltd; (c) there was conflict of interests and lack of transparency in the making of a deal of such significance marking the transfer of control of core national or state owned assets to a relatively unknown private entity; and (d) flagrant disrespect of the invitation by the federal legislative arm to provide clarity on the deal in contravention of extant law guiding the O & G industry, amongst others by NNPC Ltd – a statutory body answerable to the legislature in accordance with the Nigerian Constitution (as amended) and extant Petroleum Industry Act, amongst others.

The foregoing in mind, one perhaps can then understand why there may be some merit to the allegation made by 2023 PDP Presidential Candidate and one-time former Vice President of the Federal Republic of Nigeria, Alhaji Atiku Abubakar that ‘the NNPC Retail Ltd—OVH acquisition deal was part of a grand scheme by President Bola Ahmed Tinubu to integrate his personal business interests into Nigeria’s public enterprises at the federal level.’

If indeed the claim by the NNPC spokesman – Mr Olufemi Soneye is true that the said investment decision by NNPC management was strictly determined on the basis of commercial viability and national interest, it beats one’s imagination that a good business case can made whatsoever- in the nation’s interests - to justify the acquisition of the NNPC Retail Ltd by OVH/Helios/Oando Plc.

In the view of the current writer, the purported transfer by the Nigerian National Petroleum Company Limited (NNPCL) of all its retained assets to OVH Energy Marketing Limited, an entity closely linked to Oando Plc and a company partly owned by President Bola Ahmed Tinubu (PBAT)’s nephew – Mr Wale Tinubu would leave a sour taste in the mouth of any concerned citizen who has had to endure the austere, economically unfriendly and financially challenging administration of President Tinubu.

Even more concerning is that PBAT has chosen a holier than approach in encouraging Nigerians to continue to embrace poor living standards as well as keep suffering and smiling in the face of skyrocketed prices of essential commodities and services, while PBAT, his immediate family, relatives, business associates and political allies all smile to the bank, while they enjoy a share of the national cake and further enrich themselves, at the expense of citizens – the same people he claimed to serve. I mean, what audacity!

Joseph Onele, a legal practitioner, writes from Lagos, Nigeria and can be reached via [email protected] or [email protected]