Lekoil Nigeria CEO clears air on ownership tussle

Controversy and confusion have surrounded Lekoil Nigeria amidst a tussle with its main branch in the Cayman Islands, registered as Lekoil Limited. The recent resignation of three directors and senior executives from the board of Lekoil Cayman has been linked to the termination of Lekan Akinyanmi's contract as the company's CEO. To provide clarity on the situation, Lekan Akinyanmi, the embattled CEO, sat down with CNBC Africa to shed light on the unfolding events. Akinyanmi, who founded Lekoil Nigeria in late 2010, explained the intricate corporate structure of the company. Lekoil Nigeria, an indigenous private company, holds all assets in Nigeria, while Lekoil Limited is an investment company with a 40% equity stake in Lekoil Nigeria. Despite facing challenges with the industry shift and investor turnover, Akinyanmi emphasized the importance of a long-term, sustainable strategy. The recent termination of his contract sparked further controversy, with allegations of corporate governance breaches. Akinyanmi, while refraining from specifics due to ongoing legal matters, refuted the narratives put forth by Lekoil Cayman, underscoring the need for a complete picture to emerge. The uncertain situation has affected shareholder sentiments and the market valuation of Lekoil. Despite significant potential in its assets, including the prolific Ogo field discovery, the company has struggled to translate asset value into stock performance. The stock price volatility and uncertainty surrounding the leadership transition have led to investor apprehension. Akinyanmi urged a focus on maximizing the current oil price environment and advancing asset development to drive shareholder value. A swift resolution to the ownership dispute and governance concerns is crucial for restoring investor confidence and charting a clear path forward for Lekoil's future.