The House of Representatives has called on oil and gas companies operating in Imo State to urgently comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 regarding indigenous employment, contract awards, and the establishment of operational offices.
It also urged full adherence to the Host Communities Development Trust requirements under the Petroleum Industry Act (PIA) 2021.
Additionally, the House appealed to the companies to grant officials of the Imo State Internal Revenue Service (IIRS) unrestricted access to their premises to enable them to perform their lawful duties.
The lawmakers further advised the companies to engage in genuine dialogue with host community leaders to address grievances and promote peaceful coexistence.
These resolutions followed the adoption of a motion of urgent public importance titled “Flagrant Abuse of Due Process and Infringement of Local Content, Disobedience to Petroleum Industry Act, and Non-Compliance with Tax Laws by Oil and Gas Companies Operating in Imo State”, sponsored by Hon. Chike John Okafor at plenary.
Leading the debate, Okafor noted that the NOGICD Act 2010 was enacted to promote the utilisation of Nigerian human and material resources and ensure the participation of local companies in the oil and gas industry.
He added: “Also note that the Petroleum Industry Act (PIA), 2021 provides a robust legal and regulatory framework for the Nigerian petroleum industry, including specific provisions for host community development, environmental management, and equitable benefit sharing.
“Aware that the Taxes and Levies (Approved List for Collection) Act authorises state governments to collect certain taxes and levies from businesses operating within their territories, which is crucial for funding state infrastructure and social services.”
Okafor named several international and indigenous oil companies operating within Imo’s oil-producing communities of Ohaji/Egbema, Oguta, and other local government areas as hosts, including:
Seplat Energy Plc (OML 53)
Niger Delta Petroleum Resources (NDPR) (OML 54)
Sterling Oil Exploration & Energy Production Co. Ltd (SEEPCO)
Waltersmith Petroman Oil Limited (OML 16)
Associate Oil & Gas Ltd/Dansaki Petroleum Ltd (Umuseti/Igwe marginal field)
Chorus Energy Ltd (formerly Shell Portfolio)
TotalEnergies/NNPC Joint Venture
Nigerian National Petroleum Corporation (NNPC) Ltd
The lawmaker expressed concern over persistent complaints from host communities and the state government regarding:
Failure to establish functional operational offices within their host areas, as required under Section 3(j) of the NOGICD Act 2010;
Failure to prioritise the employment of qualified Imo indigenes, contrary to Sections 11, 28, and 35 of the Act;
Refusal to award contracts to competent Nigerian companies, particularly from host communities;
Obstruction of lawful access to company premises by IIRS officials for tax assessment and collection; and
Non-compliance with the Host Communities Development Trust provisions under Chapter 3 of the PIA 2021.
Okafor warned that continued disregard for these laws had caused widespread frustration and could trigger unrest in the oil-producing communities.
“Also concerned that the continued neglect and infringement of these laws, if not urgently addressed, 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,” he said.
The House consequently mandated the Committee on Nigerian Content Development and Monitoring to invite the chief executives of the seven concerned oil companies, as well as the heads of the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Chairman of the Imo State Internal Revenue Service for questioning.
It also directed the Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream, Downstream, and Midstream), Finance, and Justice to investigate alleged violations of the NOGICD Act 2010, PIA 2021, and relevant tax laws by oil and gas firms operating in Imo State.
The committees are to report their findings within four legislative weeks.
Speaking with journalists, Okafor clarified that the motion sought dialogue, not confrontation:
“So, what we have done is give them a platform, both the regulators and the operators. Let them come. Let us come under one roof; we’ll all sit down and point accusing fingers appropriately. The whole idea is to find a way forward. It’s a give-and-take thing.
“You are already operating, you have marginal oil fields in some cases in Imo, and there are extant laws that you must comply with. We are not witch-hunting anybody.
“The whole idea is to get them to do the right thing for the benefit of Imo, the host communities in particular.”
He stressed that the motion did not accuse all the listed companies of violations but rather sought accountability and compliance.