The Nigerian National Petroleum Company Limited (NNPCL) is facing scrutiny after revelations that it increased salaries and allowances for over 6,280 employees, with some increments reaching 50%. The move has sparked debate as Nigeria continues to struggle with inflation and fiscal pressures.
Management’s Position
Insiders confirmed that Group Chief Executive Officer Bayo Ojulari approved the decision to retain skilled professionals and attract new talent in a competitive market. They argued that without the adjustment, NNPCL risked losing workers to better-paying competitors and federal agencies.
The company defended its action, stressing that its compensation still ranks modestly compared to global oil and gas benchmarks. A source explained that even with the new structure, pay remains mid-range internationally. Management argued that persistent inflation and repeated naira devaluations forced the company to act to prevent staff attrition. Observers also noted that international energy firms routinely adjust compensation to compete for scarce technical expertise.
Funding Structure
NNPCL funds its salaries through a 30% management fee under the Petroleum Industry Act (PIA). This allocation covers operating expenses, including staff compensation, without drawing directly from federal revenues. Data presented to the Federation Account Allocation Committee (FAAC) showed that the fund stood at ₦25.3 billion in August 2025.
Workforce Statistics and Criticism
As of April 2025, the company employed 6,280 staff—5,077 men (80.8%) and 1,203 women (19.2%). Reports indicate that the improved packages have already attracted recruits from other government institutions.
Despite these justifications, critics argue that the timing is ill-judged. With inflation above 30% and Nigerians struggling with rising fuel and food costs, the sharp rise in allowances has drawn public backlash. Allegations that some increments were backdated have further fuelled criticism, intensifying calls for more transparency in NNPCL’s compensation policies.