Industry insiders and aggrieved staff accused the management of using the exercise to edge out experienced workers and create vacancies for loyalists and cronies, warning that the development could trigger a major crisis capable of undermining ongoing reforms in the petroleum sector.

The workers alleged that many of those marked for retirement had no record of misconduct or disciplinary infractions throughout their years of service in the former NNPC and the current NNPCL structure.

According to them, affected employees, some with four to five years left before statutory retirement, are allegedly being pressured to accept severance packages amounting to about 20 per cent of their salaries and entitlements for their remaining years of service.

But the NNPCL dismissed the allegations as false, misleading and not reflective of ongoing workforce transitions.

It said the AES and VES were part of a broader business transformation aimed at positioning NNPC Limited as a more agile, commercially focused, and globally competitive energy company, arguing that workforce renewal and succession planning were normal elements of corporate transformation across global organisations.

But sources within the company claimed the exercise was being carried out simultaneously with promotion interviews allegedly designed to favour associates of top management officials.

“The overall objective is to push these categories of staff out and create vacancies for cronies. These are hardworking and dedicated professionals with years of institutional experience being sacrificed to cover management inefficiencies,” a senior industry source alleged.

The development, they warned, contradicted the spirit of the Petroleum Industry Act (PIA), which was introduced partly to strengthen efficiency, deepen investments and create employment opportunities in the oil and gas industry rather than trigger mass job losses.

The controversy is coming amid mounting concerns over Nigeria’s inability to meet crude oil production targets despite rising global oil prices occasioned by tensions in the Middle East, particularly the conflict involving the United States, Israel and Iran.

Nigeria’s 2026 budget is benchmarked on crude oil production of about 1.84 million barrels per day (bpd), but actual output has reportedly hovered around 1.46 million bpd, significantly below both budget expectations and the country’s Organisation of Petroleum Exporting Countries (OPEC) quota.

Industry stakeholders argued that the persistent shortfall has denied Nigeria the opportunity to fully benefit from favourable global oil market conditions currently boosting revenues for several oil-producing nations.

They also accused the current NNPCL leadership of attempting to create what they described as a “false impression” of operational efficiency and financial health ahead of a potential Initial Public Offering (IPO).

According to the sources, the planned workforce reduction was allegedly intended to portray the national oil company as leaner and commercially viable while shielding top officials from scrutiny over declining production performance.

They warned that unless the Federal Government intervened urgently, organised labour within the oil and gas sector might mobilise against the policy, potentially disrupting operations and threatening broader reforms initiated by President Bola Tinubu’s administration.

They also accused the current NNPCL leadership of attempting to create what they described as a “false impression” of operational efficiency and financial health ahead of a potential Initial Public Offering (IPO).

According to the sources, the planned workforce reduction was allegedly intended to portray the national oil company as leaner and commercially viable while shielding top officials from scrutiny over declining production performance.

They warned that unless the Federal Government intervened urgently, organised labour within the oil and gas sector might mobilise against the policy, potentially disrupting operations and threatening broader reforms initiated by President Bola Tinubu’s administration.

“The schemes are not designed as punitive measures, nor are they politically motivated.

“Eligible employees are being engaged directly and provided with clear information on the terms of the programme. NNPC Limited is committed to ensuring that all engagements are conducted responsibly and in line with applicable policies and obligations.

“Our employees remain our greatest asset, and Management deeply appreciates their contributions to the growth and evolution of NNPC Limited over the years”, NNPC said.