NNPC administrators’ pay soars 58% to N4.1bn

The price of operating the board and workforce of the Nigerian Nationwide Petroleum Firm Restricted rose sharply in 2024, with administrators’ charges and bills climbing to N4.096bn, whereas whole spending on worker advantages surged to N749.7bn, in line with the corporate’s audited monetary annual report.

An evaluation of the 2024 Annual Report by The PidomNigeria, on Thursday, confirmed that administrators’ charges and reimbursable bills elevated by about 58 per cent from N2.593bn in 2023.

This determine signifies a rise of 214 per cent from N824m paid to the administrators in 2022. “NNPC Restricted administrators’ charges and bills rose to N4.096bn in 2024, up from N2.593bn in 2023,” the report learn.

In the identical yr, the nationwide oil firm recorded zero employees resignations throughout all age brackets for the second consecutive yr, a improvement linked to improved welfare packages and rising staff-related expenditure.

The report signifies that the 11 board members served all through the 2024 monetary yr with out modifications, contributing to the upper administrators’ prices disclosed within the accounts.

All through 2024, the board was chaired by Chief Dr Pius O. Akinyelure, with Mallam Mele Kolo Kyari as Group Chief Govt Officer. Alhaji Umar Isa Ajiya served as Group Chief Monetary Officer till November 2024, forward of the appointment of Mr Adedapo Segun, who later joined the board.

Different non-executive administrators included Amb. Nicholas Agbo Ella, Mr Okokon Ekanem Udo, Mr Ledum Mitee, Mr Musa Tumsah, Dr Ibraheem Ghali-Mohammed, Prof Almustapha Aliyu, Mr David Ogbodo, and Mrs Eunice Thomas.

Most of the administrators’ tenures, the report famous, ended on April 2, 2025, when President Tinubu dissolved the board and appointed a brand new management led by Engr. Ahmadu Musa Kida as chairman and Engr. Bashir Bayo Ojulari as Group CEO.

Regardless of the rise in board bills, whole compensation paid to NNPCL’s key administration personnel fell marginally in 2024. Quick-term worker advantages for key executives rose to N985m from N818m in 2023, whereas post-employment pension and medical advantages declined to N380m from N631m.

General, whole compensation paid to key administration personnel stood at N1.365bn in 2024, down from N1.449bn within the earlier yr. The corporate defined that the figures symbolize bills recognised through the reporting interval and canopy solely key administration personnel, outlined because the Group CEO, CFO, Common Counsel, and Firm Secretary, and all Govt Vice Presidents.

Past board and government prices, the report reveals that NNPC spent N749.7bn on worker advantages on the Group degree in 2024, up from N581.8bn in 2023. A overview of the workforce knowledge reveals that no worker aged between 30 and 59 resigned voluntarily through the yr. All exits from service had been on account of obligatory retirement between the ages of 60 and 65, mirroring the sample recorded in 2023.

The breakdown of staff-related spending consists of N272.7bn on salaries and wages, N79.1bn on employees allowances, and N40.5bn on welfare bills. Pension prices underneath the outlined contribution plan stood at N44bn, whereas gratuity costs rose to N84.4bn. Publish-employment medical advantages amounted to N3.3bn, and long-term worker advantages stood at N4.4bn.

On the firm degree, worker profit bills had been put at N192.3bn in 2024. The report additionally confirmed that employees mortality assumptions remained secure, with deaths per 10,000 workers aligning with actuarial expectations throughout age brackets.

The zero-resignation development underscores the power of NNPC’s compensation and welfare framework, notably since its transition right into a restricted legal responsibility firm underneath the Petroleum Trade Act in 2021. Since changing into a industrial entity, NNPC has expanded spending on salaries, well being cowl, pensions, gratuities, and long-service awards.

Nonetheless, the sharp rise in administrators’ charges and staff-related prices is more likely to intensify public scrutiny, particularly amid financial pressures, gas subsidy elimination fallout, and ongoing debates over price effectivity and worth for cash on the nationwide oil firm.

NNPC’s governance prices have come underneath nearer public scrutiny for the reason that firm’s transition from a state company to a restricted legal responsibility firm underneath the Petroleum Trade Act, which requires stricter monetary disclosures and transparency.

Whereas supporters of the reforms argue that aggressive remuneration is important to draw and retain prime expertise in a commercialised nationwide oil firm, critics have repeatedly raised issues about rising administrative and board prices at a time of financial hardship and protracted income pressures.

In the meantime, normal and administrative bills on the Nigerian Nationwide Petroleum Firm Restricted rose sharply in 2024, underscoring the rising price of operating Africa’s largest nationwide oil firm amid its transition to a completely industrial entity.

Figures from the corporate’s 2024 Annual Report present that whole normal and administrative bills on the Group degree surged to N3.58tn in 2024, up from N2.09tn in 2023. On the firm degree, bills climbed to N1.66tn, in contrast with N994.08bn the earlier yr.

A significant driver of the rise was worker profit bills, which jumped to N749.74bn on the Group degree in 2024, from N583.8bn in 2023. On the firm degree, staff-related prices stood at N192.3bn, barely decrease than the N194.56bn recorded in 2023.

Depreciation costs additionally rose steeply. Depreciation of different property, plant, and tools surged to N623.41bn in 2024 from N101.03bn a yr earlier, reflecting asset revaluation, elevated capitalisation, and expanded operations. Depreciation of right-of-use belongings rose to N66.5bn, in contrast with N13.93bn in 2023.

Skilled and consultancy charges recorded one of many sharpest will increase, ballooning to N699.67bn on the Group degree in 2024, from N184.2bn the earlier yr. On the firm degree, consultancy prices rose to N544.17bn, up from N81.64bn, highlighting rising reliance on exterior advisory and technical providers.

Spending on software program licences and upkeep additionally climbed considerably to N210.06bn on the Group degree, from N66.59bn in 2023, whereas safety bills elevated to N271.37bn, in contrast with N170.7bn the earlier yr, reflecting persistent safety challenges throughout oil and fuel belongings.

Different price strains additionally trended upward. Transport and travelling bills doubled to N91.55bn, whereas coaching and recruitment prices rose to N90.39bn from N48.95bn. Leisure bills climbed to N30.34bn, up from N7.44bn, and spending on area people improvement elevated to N29.89bn, in contrast with N6.87bn in 2023.

NNPC additionally recorded N27.76bn disbursement underneath the Host Neighborhood Improvement Fund, reflecting obligations underneath the Petroleum Trade Act, whereas gas and lubricants bills stood at N27.4bn.

The corporate additional disclosed N118.78bn in fines and penalties, an expense line that didn’t seem within the prior yr’s comparative figures. Whereas audit charges stood at N3.16bn, barely greater than N2.68bn recorded a yr earlier.

On the asset aspect, the corporate reported N98.07bn as impairment on belongings held on the market, alongside N16.75bn written off as intangible belongings and N633m in amortisation of intangible belongings.

Regardless of will increase throughout most price strains, different bills fell sharply to N146.87bn on the Group degree in 2024, from N563.74bn in 2023, suggesting a reclassification or tightening in sure discretionary spending.

The sharp rise in NNPCL’s administrative and working prices is anticipated to gas renewed public and coverage debate about price effectivity, transparency, and worth for cash on the nationwide oil firm, notably at a time of financial pressure and heightened scrutiny of public-sector spending following gas subsidy elimination and broader fiscal reforms.