Nigerian affiliate of Lekoil Ltd retains Akinyanmi as CEO

While Lekoil Limited may have removed Lekan Akinyanmi as chief executive over what it called a “governance breach” arising from a loan dispute, the Nigerian arm of the company says the ousted CEO will retain the position for its operation.

Lekoil Ltd has a minority 40 percent stake in Lekoil Nigeria Ltd and Akinyanmi was the CEO of the entire operation.

“Lekoil Nigeria Limited notes the decision of Lekoil Limited (Lekoil Cayman) to terminate the service of Lekan Akinyanmi and remove him as Lekoil Cayman CEO as announced 3 June 2021,” the company said in a release signed by Hamilton Esi, the company’s spokesperson.

“Akinyanmi remains on the Board of Lekoil Nigeria Limited and also its Chief Executive Officer,” it said.

According to Lekoil Nigeria Ltd, this decision to remove the CEO is the culmination of the efforts of the consortium led by Metallon Corporation to take control of Lekoil Cayman.

The company’s Nigerian affiliate condemned the decision of its parent company to add people it said were inexperienced to the company’s board as orchestrated by Metallon Corporation, a South African mining firm that owns 15 percent of Lekoil Ltd’s shares.

“Seasoned oil sector executives such as George Maxwell, and former directors with deep knowledge of the continent, such as Mark Simmonds, have resigned and been replaced with directors lacking industry expertise, knowledge of the continent, impartiality, and objectivity and appointed to secure for Metallon Corporation and its collaborators, the full takeover of Lekoil Cayman,” the release said.

Lekoil Nigeria Ltd further alleges that concerted efforts have been made by Metallon Corporation to seize control of the assets of Lekoil Nigeria Limited.

“The decision to remove Mr. Akinyanmi is the latest outcome of this strategy,” the release said claiming that the procedure leading to the termination of Akinyanmi’s service was not compliant with the company’s corporate governance policies.

Metallon Corporation, last year attempted a take-over of the assets of Lekoil Nigeria Limited, an affiliate of Lekoil Ltd.

Following a decline in the price of Lekoil Limited shares in 2020, Metallon mopped up 15 percent of the company’s shares thereby becoming the majority stakeholder in Lekoil Ltd.

Directors in Nigeria including the CEO had resisted Metallon’s quest citing the shareholders’ agreement, which it claims prohibits Lekoil Limited from compelling Lekoil Nigeria to follow a course of action.

“ Akinyanmi created and executed the vision of an independent indigenous Nigerian energy company that is Lekoil, for this generation and in this emerging market and he has always worked with the best interest of Lekoil shareholders in mind.

“While we take legal counsel regarding this decision by Lekoil Cayman, we wish to assure our numerous stakeholders, especially the Nigerian people that the strategic national assets under our purview will be protected by all legitimate means available to us,” Lekoil Nigeria Ltd said in the release.