ABUJA, Nigeria (VOICE OF NAIJA)-The House of Representatives has instructed its Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream, Downstream, and Midstream), Finance, and Justice to investigate oil companies operating in Nigeria particularly those in Imo State over alleged violations of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.
This resolution followed the adoption of a motion of urgent public importance raised during Wednesday’s plenary by Hon. Chike Okafor, a lawmaker from Imo State.
In 2021, the Senate Committee on Local Content accused Daewoo Engineering and Construction Limited, a Korean firm, of breaching Section 31 of the NOGICD Act, 2010, which mandates that a Nigerian citizen must understudy any foreigner occupying a position in the nation’s oil and gas sector.
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Similarly, host communities in oil-producing areas have repeatedly protested violations of the Petroleum Industry Act (PIA), urging the government to safeguard the environment from the adverse effects of oil exploration.
The NOGICD Act was enacted to encourage the use of Nigerian manpower and materials, as well as to increase local participation in the oil and gas sector.
Meanwhile, the PIA 2021 serves as the overarching regulatory framework for the petroleum industry, outlining provisions for host community development, environmental protection, and equitable distribution of benefits.
Additionally, the Taxes and Levies (Approved List for Collection) Act empowers state governments to collect certain taxes and levies from companies within their jurisdictions vital for funding state infrastructure and social programs.
Addressing his colleagues during the plenary session presided over by Deputy Speaker Benjamin Kalu, Okafor explained that several foreign and local oil companies currently operate within Imo State’s oil-producing communities.
According to him, these companies include Seplat Energy Plc, Niger Delta Petroleum Resources, Sterling Oil Exploration and Energy Production Company Limited, and WalterSmith Petroman Oil Limited. Others are Associate Oil and Gas Limited/Dansaki Petroleum Limited, Chorus Energy Limited, TotalEnergies/NNPC Joint Venture, and the Nigerian National Petroleum Company Limited (NNPC Ltd.)
He said, “The House is aware of the persistent outcry and allegations from host communities and the state government regarding the failure to establish functional operational offices within their areas of operation in Imo State as mandated by Section 3(j) of the NOGICD Act, 2010, thereby denying the state valuable economic activity and employment.
“We are concerned about the systematic failure of these companies to prioritise the employment of qualified indigenes of Imo State, in direct violation of Sections 11, 28, and 35 of the NOGICD Act, 2010.
“The House is worried about the refusal to award contracts to competent Nigerian companies, especially those from the host communities, for goods and services.
“We are also aware of the obstruction of lawful efforts by the Imo State Government and Imo State Internal Revenue Service to access their premises for assessment and collection of legally approved state taxes and levies.
“Another issue is the non-compliance with the Host Communities Development Trust provisions under Chapter 3 of the PIA, 2021, leading to a lack of tangible benefits and development in these communities.”
Okafor warned that the continued disregard for these laws, if not promptly resolved, “May lead to violent protests that could threaten national security, destruction of critical oil and gas infrastructure, disrupting production and harming the national economy and a breakdown of law and order in the oil-producing regions of Imo State.”
Following deliberations, lawmakers unanimously supported the motion when it was put to a voice vote by Deputy Speaker Benjamin Kalu.
The House directed all oil and gas firms operating in Imo State to immediately comply with the NOGICD Act, particularly regarding indigenous employment, contract awards, and the establishment of operational offices.
It also ordered compliance with the Host Communities Development Trust provisions under the PIA 2021 and further instructed companies to grant “Unfettered access to officials of the Imo State Internal Revenue Service for the performance of their lawful duties, engage in genuine dialogue with host community leaders to address grievances and ensure peaceful coexistence.”
Additionally, the House mandated its Committee on Nigerian Content Development and Monitoring to summon “The Chief Executives of the seven concerned oil companies, the Nigerian Content Development and Monitoring Board, the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission and the Chairman of Imo State Internal Revenue Service for questioning.”