Over 70% of eligible NNPC staff opt for early retirement scheme

More than 70 per cent of staff of the Nigerian National Petroleum Company Limited (NNPC) who qualify for the company’s newly introduced early retirement scheme have indicated willingness to take it up, officials of the national oil firm have disclosed.

The scheme, rolled out under two tracks — the Accelerated Exit Scheme (AES) and the Voluntary Exit Scheme (VES) — is being presented by the company as a voluntary reform measure aimed at repositioning its workforce, boosting efficiency and creating openings for younger professionals.

Under the arrangement, the AES covers employees with about a year left before their retirement in 2026, while the VES applies to staff due for statutory retirement in 2027, as well as those on grade level SS1 with roughly two to five years left before retiring between 2028 and 2030.

Officials who spoke to The PUNCH on condition of anonymity, citing lack of authorisation to discuss the matter publicly, said no worker was being forced into the programme, describing it as mutually beneficial for both the company and individual employees.

One of the officials said the level of uptake so far pointed to the scheme’s success, noting that a response rate above 70 per cent among eligible staff signalled strong appetite for early exit, compared to what would have been a poor showing if interest had stood at 15 per cent or below.

The clarification follows speculation in some quarters that certain categories of staff were being pressured to leave the organisation, a claim the officials denied, insisting the scheme was not targeted at specific individuals and was not unprecedented, as some organisations run similar exercises every few years.

The Group Chief Executive Officer, Bashir Ojulani, had in an internal memo last month linked the exercise to an ongoing organisational recalibration, stating that the workforce needed to evolve in line with the company’s transformation agenda and describing the schemes as part of efforts to responsibly manage workforce transitions while creating room for renewal.

A senior official explained that employees who opt for early exit receive an enhanced severance package compared to what they would get on attaining the official retirement age of 60 or completing the maximum years of service, whichever comes first, adding that those who wish to remain are free to decline without facing any consequences.

The official further tied the scheme to the company’s broader workforce renewal strategy, noting that NNPC had recruited more than 1,000 new employees in the past year and that the exits would open additional space for younger professionals and, in some cases, experienced hires with specialised skills.

NNPC, which became a limited liability company under the Petroleum Industry Act, has in recent years pursued a series of reforms targeted at improving operational efficiency and positioning it to compete with its international counterparts, with the latest exit scheme forming part of that broader push, according to the report.