By Ono Yima
The Nigerian National Petroleum Company Limited (NNPCL) is facing criticism following revelations of sharp salary increases and allowances for more than 6,200 staff members.
Reports indicate that some of the increments reached as high as 50 per cent, with allowances witnessing sharp adjustments. Insiders allege that the raises were backdated, while others argue the decision was necessary to retain and attract top industry talent.
According to company disclosures, NNPCL currently employs 6,280 staff, with men accounting for 80.8 per cent (5,077) and women 19.2 per cent (1,203). The Guardian reported that the adjustments have already encouraged staff from other well-paying government agencies to join the company.
In its defence, the company stressed that the adjustments were modest compared with global industry benchmarks and essential for competitiveness.
“As a responsible employer, NNPC Limited strives to maintain a competitive salary structure that reflects prevailing realities in the energy industry,” a company source said.
“Even with recent adjustments, our compensation remains at the mid-range compared to global oil and gas standards, and we continue to face challenges in attracting and retaining top talent.”
The company pays staff from a 30 per cent management fee legalised by the Petroleum Industry Act (PIA). As of August 2025, the fund totalled ₦25.3 billion, according to its presentation to the Federation Account Allocation Committee (FAAC).
Critics argue that the sharp increments create a moral dilemma in a country grappling with widespread economic hardship. Some question the timing, suggesting that the move sends the wrong message to Nigerians enduring high inflation and shrinking disposable incomes.
Labour experts also warn that disparities in public sector compensation could widen, sparking agitation in other government-owned enterprises.
The debate over NNPCL’s pay rise underscores a deeper paradox. On one hand, Nigeria aspires to transform NNPCL into a globally competitive player capable of retaining talent. On the other, the company operates in a nation where poverty, inequality, and joblessness weigh heavily on society.
For NNPCL, striking a balance between rewarding excellence and demonstrating sensitivity to the national mood will define not just its corporate image, but also public trust in its transformation agenda.