NNPC Board Pay Climbs Sharply as Directors’ Fees Hit N4.1bn in 2024

The Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a significant rise in the cost of running its board in 2024, with directors’ fees and reimbursable expenses jumping by about 58 per cent to approximately N4.1 billion, according to the company’s audited annual financial report.

The increase represents a substantial rise compared with the N2.59 billion paid to directors in 2023, and an even sharper climb from the N824 million paid in 2022. Analysts say the higher costs are partly tied to board continuity, as all 11 directors served throughout the year without changes.

Alongside the board expenses, NNPC’s employee benefit costs surged to N749.7 billion at the group level, up from N581.8 billion in 2023. The report shows no voluntary resignations among staff aged 30–59 for the second consecutive year, a trend attributed to enhanced welfare packages and rising compensation.

The breakdown of staff-related expenditure included substantial amounts for salaries, allowances, pension contributions, and gratuity charges, reflecting the company’s heavier spending on personnel costs amid its transition to a commercial entity under the Petroleum Industry Act.

Despite the surge in board and workforce costs, total compensation for key management personnel declined slightly in 2024. While short‑term benefits rose modestly, pension and medical post‑employment benefits dropped, resulting in an overall reduction in executive pay compared with the previous year.

The sharp rise in governance and staff spending at Nigeria’s national oil company is expected to attract increased public scrutiny, particularly against the backdrop of broader economic pressures and debates over cost efficiency and value for money in state‑linked enterprises.