- Top oil companies in Nigeria are splurging cash on their employees to retain them as competition in the oil sector heats up
- The leading oil companies include Seplat, Ardova, Total Energies, and Conoil, among others which doled out cash to their employees
- As the urge to move overseas for better life gets stronger, the oil firms are doing all they can to retain staff loyalty and attract talents from the competition
Recent reports have shown that leading energy firms in Nigeria spend heavily on staff welfare, including salaries and other benefits to retain them.
Seplat Energy, Total Energy and Ardova were the top oil marketers in Nigeria with the highest personnel costs and expenses in the first half of 2022.
What the oil companies spent on in 2022
Statements from their records show that the oil firms spent about N17.2 billion on staff costs and personnel expenses between January and June 2022, representing a 14.4 per cent increase compared to N15.04 billion recorded in the year before.
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The expenses include wages and salaries, employee pension contributions and other short and long-term employee benefits.
Recently, the labour market in Nigeria has become fiercely competitive with companies employing experienced employees from competitor firms as the lure of travelling overseas for better work conditions sees many Nigerians relocating for better jobs.
To influence employee loyalty, top oil firms in Nigeria induce staff with incentives to retain them. These accounts for rapid upward movement in staff costs.
A breakdown of the data also indicates that Ardova recorded the highest staff costs on a year-on-year basis with 16.3 per cent, while MRS Oil recorded the lowest in the period under review.
Seplat Energy maintained the top spot on the list with a total employee costs of N8,61 billion in the first half of the year at 16.27 per cent higher than the year before at N7.41 billion under review.
The Top big five ranking
Total Energies followed with a staff cost of N5.93 billion, which represents a 15.35 increase in comparison to 5.14 billion recorded in the same period in 2021. The breakdown of the firm’s expenses shows that the N5.93 billion includes terminal benefits, medical expenses, training, and temporary staff.
Ardova Plc spent about N1.48 billion on personnel expenses in the first half of 2022, indicating a 16.3 per cent higher than the N1.27 billion recorded in the previous year.
Other entitlements such as salaries, wages and allowances spent by Ardova spiked in the period under review by 63,4 per cent to N1.06 billion, which includes pension contributions, gratuity, redundancy costs, training and medical expenses.
Others include Conoil Oil, with a staff cost of N980 million, and MRS Oil, with N198.8 million in the period under review.
Top 5 Oil Companies in Nigeria Rain Cash on Employees in First Half of 2022
Legit.ng reported that President Muhammadu Buhari approved the 100 per cent acquisition of the whole share capital of Mobil Oil Producing Nigeria Unlimited by Seplat energy Offshore Limited. This was disclosed in a tweet by the Presidency.
According to the tweet, Buhari authorised the acquisition in his capacity as Minister of Petroleum and is geared towards attracting foreign direct investment into the country.
The statement also gave directives to Exxon Mobil and Seplat to mitigate all environmental and abandonment liabilities.