Freshly appointed Group CEO Adewale Ojulari has initiated a comprehensive restructuring at the Nigerian National Petroleum Company Limited (NNPCL), signaling impending layoffs across multiple departments.
Reliable sources confirmed that the state oil giant will announce workforce reductions exceeding 1,000 positions within weeks, primarily targeting redundant roles in upstream operations and corporate services.
This makes it the first major personnel purge since NNPCL’s transition from a state-run corporation to a commercial entity under the Petroleum Industry Act (PIA).
Strategic Departments Face Immediate Reorganization
Documents obtained by some news reporters revealed that the Asset Management, Retail Marketing, and Gas Infrastructure divisions will undergo the most radical transformations.
Ojulari’s transition team identified over 300 duplicate positions across Nigeria’s six oil-producing states, with regional offices in Port Harcourt and Warri expected to consolidate. The restructuring is following damning audit reports showing NNPCL’s operational costs remain 40% higher than international peers despite 2023’s subsidy removal.
Industry analysts have said the moves align with World Bank recommendations to streamline Nigeria’s oil sector ahead of planned divestments from onshore assets.
Performance Metrics to Determine Staff Retention
Internal memos indicate Ojulari will implement stringent Key Performance Indicators (KPIs) for all managerial staff, with failure to meet quarterly targets triggering automatic termination. The new leadership has abolished the previous “grade level” promotion system, replacing it with competency-based assessments conducted by external consultants.
“Only employees adding measurable value will survive this transition,” confirmed an NNPCL spokesperson, noting that digital transformation will eliminate many administrative roles. Union leaders report receiving notification of voluntary retirement packages for non-essential personnel aged 50 years and above.
The reorganization comes as Shell, ExxonMobil, and ENI finalize sales of Niger Delta assets to domestic operators. Energy consultants suggest Ojulari’s purge aims to position NNPCL as a leaner partner for joint ventures, addressing longstanding IOC complaints about bureaucratic bloat.
However, the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) warns industrial action may follow if severance negotiations disregard collective bargaining agreements. The union has scheduled emergency meetings with the Ministry of Petroleum Resources to establish layoff safeguards.
NNPCL’s Digital Transformation Plan to Replace Traditional Roles
NNPCL’s 2024 strategic plan confirms automation of accounting, procurement, and crude marketing processes will displace approximately 600 jobs. The company has partnered with Microsoft and SAP to implement AI-driven solutions for supply chain management by Q3 2024. Ojulari emphasized these changes during his maiden staff address:
“We must evolve into a 21st-century energy company, not a jobs program.”
Training programs will be offered for affected employees in renewable energy divisions, though skeptics note NNPCL’s solar and gas expansion projects currently employ fewer than 200 workers total.
The Political Fallout and National Implications
The impending layoffs risk exacerbating Nigeria’s unemployment crisis, with analysts predicting ripple effects across service sectors in oil-dependent states. National Economic Council members have reportedly urged phased implementation to mitigate social consequences.
Meanwhile, the reforms may finally enable NNPCL to meet long-delayed targets for initial public offering (IPO) preparation, a key requirement under the PIA.
As Ojulari works on overhauling Nigeria’s most strategically important company, his actions could redefine hydrocarbon governance in Africa’s largest oil producer for decades. Only time will tell though.
