NNPCL Defends Salary Hike Amid Criticism, Says Move Aimed at Retaining Talent

The Nigerian National Petroleum Company Limited (NNPCL) is facing public criticism following revelations of significant salary and allowance increases for its 6,280 employees.

While some increments reportedly reached 50 percent and were allegedly backdated, the company insists the review was necessary to remain competitive in the global oil and gas industry.

According to its August presentation to the Federation Account Allocation Committee (FAAC), NNPCL pays staff from a 30 percent management fee provided under the Petroleum Industry Act (PIA), which stood at ₦25.3 billion as of August 2025.

Insiders told The Guardian that the pay rise, approved by Group Chief Executive Officer, Bayo Ojulari, was designed to retain key professionals and attract fresh talent from rival firms and high-paying government agencies. Already, some employees from such agencies are said to have moved to NNPCL following the adjustment.

As of April 2025, the company reported a workforce of 6,280, with men making up 80.8 percent (5,077) and women 19.2 percent (1,203).

Defending the decision, a senior NNPCL official explained that inflation, currency devaluations, and rising operational costs had placed immense pressure on the workforce, making the review unavoidable.

“As a responsible employer, NNPCL strives to maintain a competitive salary structure that reflects industry realities,” the source said. “Even with the new adjustments, our compensation is still mid-range compared to global oil and gas standards. Without such steps, we risk losing critical talent and destabilising operations.”

Critics, however, argue that the timing of the salary increase raises concerns, given the country’s economic challenges and high cost of living.