Spending on the board and workforce of the Nigerian National Petroleum Company Limited (NNPC) rose significantly in 2024, with directors’ fees and reimbursable expenses climbing to ₦4.096 billion, representing a 58 per cent increase from ₦2.593 billion recorded in 2023.
The increase is contained in the company’s audited 2024 annual financial report, which also shows a sharp rise in total employee benefit expenses to ₦749.7 billion, up from ₦581.8 billion the previous year.
The directors’ cost reflects a steady upward trend, rising from ₦824 million in 2022 to over ₦4 billion in 2024. The report notes that all 11 board members served throughout the 2024 financial year without changes, a factor that contributed to the higher expenses.
During the period, the board was chaired by Chief Pius O. Akinyelure, with Mele Kyari serving as Group Chief Executive Officer. Several directors’ tenures ended in April 2025 following the dissolution of the board by President Bola Tinubu and the appointment of a new leadership.
Despite higher board costs, total compensation paid to key management personnel declined slightly to ₦1.365 billion in 2024, compared with ₦1.449 billion in 2023. While short-term benefits increased, pension and post-employment medical benefits fell.
The report also highlights a second consecutive year of zero voluntary staff resignations across all age groups, a trend attributed to improved welfare packages and increased staff-related spending. All staff exits in 2024 were due to mandatory retirement.
Employee-related expenses included ₦272.7 billion for salaries and wages, ₦79.1 billion for allowances, ₦84.4 billion in gratuity payments, and ₦44 billion in pension contributions.
Beyond personnel costs, NNPC’s general and administrative expenses surged sharply in 2024, driven by higher spending on consultancy services, depreciation, security, software licences, and logistics.
While the company attributes the rising costs to expanded operations and its transition into a fully commercial entity under the Petroleum Industry Act, the sharp increase in board and administrative expenses is expected to intensify public scrutiny amid ongoing economic pressures and calls for greater cost efficiency
