NNPCL Faces Scrutiny Over Alleged Secret Recruitment, Frontier Oil Funding Suspension
Fresh concerns have emerged over the operations of the Nigerian National Petroleum Company Limited (NNPCL) following allegations that the company quietly recruited senior management personnel without an open selection process, while the Federal Government also suspended funding for frontier oil exploration.
Sources familiar with the development alleged that the appointments, made alongside NNPCL’s Accelerated and Voluntary Exit Programme, were conducted without public advertisement or transparent recruitment procedures, raising questions over compliance with the federal character principle.
The controversy also follows President Bola Tinubu’s Executive Order 9, which redirects funds previously earmarked for the Frontier Exploration Fund (FEF) into the Federation Account.
Industry stakeholders argued that the order affects exploration activities in Nigeria’s inland sedimentary basins, including the Chad, Sokoto, Bida and Gongola basins, as well as the Benue Trough, all regarded as key areas for future hydrocarbon discoveries.
They warned that halting the fund could slow efforts to increase Nigeria’s crude oil reserves and diversify production beyond the Niger Delta.
According to documents cited by sources, about 15 executive and senior management appointments were recently made. The appointees were said to include individuals from the South-West, South-South, Kogi State and Lagos, occupying positions such as Chief Relations Officer, Managing Director of KMPC, Treasurer, Chief Commercial Law Officer, Chief Corporate Communications Officer and other strategic roles.
Insiders claimed the appointments came as experienced staff were being encouraged to leave through the company’s voluntary exit programme, a move they described as inconsistent with NNPCL’s long-standing tradition of open and competitive recruitment.
One source expressed concern that replacing seasoned professionals through undisclosed recruitment could result in the loss of institutional knowledge accumulated over several decades.
On the suspension of frontier exploration funding, stakeholders described Executive Order 9 as a major shift in Nigeria’s energy policy, noting that the Frontier Exploration Fund was created under the Petroleum Industry Act (PIA) to support exploration in untapped inland basins.
They argued that redirecting the funds to government revenue may offer short-term fiscal benefits but could weaken Nigeria’s long-term strategy for replacing declining oil reserves and sustaining future production.
A petroleum policy analyst, Simon Amodu, also cautioned that suspending a funding mechanism established by law through an executive order could create uncertainty for investors and affect confidence in Nigeria’s regulatory environment.
Some stakeholders further observed that many of the affected frontier basins are located in Northern Nigeria, where expectations had grown that successful oil discoveries would stimulate economic growth, create jobs and attract investment.
They urged the Federal Government to review the policy and consult industry stakeholders before implementing reforms with significant implications for the country’s energy security and economic development.
Efforts to obtain NNPCL’s official reaction were unsuccessful, as the company’s Chief Corporate Communications Officer, Andrew Odeh, did not respond to enquiries before publication.
NNPCL Faces Scrutiny Over Alleged Secret Recruitment, Frontier Oil Funding Suspension
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