NNPC Reveals Directors’ Pay as Profit Hits N5.4 Trillion, Board and Staff Costs Soar
- The Nigerian National Petroleum Company (NNPC) sees directors' fees soar to N4.096 billion, a 58% rise
- Zero voluntary employee resignations in 2024 attributed to enhanced welfare packages and stability in leadership
- Admin costs surged to N3.58 trillion as scrutiny increases on NNPCL's spending amidst ongoing economic pressures
The cost of running the board and workforce of the Nigerian National Petroleum Company Limited climbed significantly in 2024, with directors’ fees and expenses rising to N4.096 billion, according to the company’s audited annual report.
This represents a 58 per cent increase from the N2.593 billion recorded in 2023 and a staggering 214 per cent jump from the N824 million paid in 2022.
Source: Twitter
The disclosure comes at a time when NNPCL reported a headline-grabbing N5.4 trillion profit in a single month, intensifying public interest in how much the national oil company spends on governance and personnel.
Stable board, higher costs
The report shows that all 11 board members served throughout the 2024 financial year without changes, a factor that contributed to the higher directors’ costs.
The board was chaired by Chief Dr Pius O. Akinyelure, with Mallam Mele Kyari serving as Group Chief Executive Officer.
Other members included Umar Isa Ajiya as Group Chief Financial Officer until November 2024, alongside several non-executive directors.
Many of their tenures ended on April 2, 2025, when President Bola Tinubu dissolved the board and appointed a new leadership led by Engr. Ahmadu Musa Kida as chairman and Engr. Bashir Bayo Ojulari as Group CEO.
Executive pay dips slightly
According to a report by Punch, despite the surge in board expenses, total compensation for key management personnel edged down slightly in 2024. Overall executive pay stood at N1.365 billion, compared with N1.449 billion in 2023.
Short-term employee benefits for top executives increased to N985 million from N818 million, while post-employment pension and medical benefits fell sharply to N380 million from N631 million.
NNPCL explained that these figures reflect expenses recognised during the reporting period and apply only to top executives, including the CEO, CFO, and executive vice presidents.
Zero resignations, rising welfare spending
One of the most striking revelations in the report is that no employee voluntarily resigned in 2024, marking the second consecutive year of zero resignations across all age brackets. All staff exits were due to mandatory retirement between the ages of 60 and 65.
This trend has been linked to improved welfare packages, as total employee benefit expenses at the Group level jumped to N749.7 billion, up from N581.8 billion in 2023.
Spending included N272.7 billion on salaries, N79.1 billion on allowances, N84.4 billion on gratuities, and N44 billion in pension contributions.
Administrative expenses surge
Beyond salaries, NNPCL’s general and administrative expenses rose sharply. Total G&A expenses at the Group level climbed to N3.58 trillion in 2024, from N2.09 trillion a year earlier. At the company level, expenses increased to N1.66 trillion.
Professional and consultancy fees recorded one of the steepest rises, ballooning to N699.67 billion from N184.2 billion.
Software licences, security costs, training, travel, and entertainment expenses also rose significantly, reflecting the growing complexity and scale of operations.
Scrutiny intensifies amid economic pressure
The sharp increase in directors’ fees and staff-related costs is expected to fuel renewed scrutiny, especially amid ongoing economic pressures, fuel subsidy removal, and debates over value for money in public institutions.
Supporters of NNPCL’s reforms argue that competitive remuneration is necessary to attract and retain top talent in a fully commercialised oil company.
Source: Getty Images
Critics, however, warn that rising administrative and board costs could undermine public confidence, even as the company posts record profits.
As Nigeria’s largest national oil company continues its transition under the Petroleum Industry Act, NNPCL’s pay structure and cost discipline are likely to remain firmly in the spotlight.
NNPC slashes petrol prices by N175 in 2025
Legit.ng earlier reported that the NNPC Limited has reduced petrol prices by over N175.
The latest adjustment came on Wednesday, December 24, ahead of the festive holidays, as the pump price in Lagos was slashed to N785 per litre.
This marks the third reduction in one week and represents an N35 drop from the previous price of N820 at Lagos filling stations.
Source: Legit.ng
