Reps summon IOCs over alleged breach of PIA, local content

The House of Representatives has summoned several oil and gas companies operating in Imo State over alleged violations of the Petroleum Industry Act (PIA) 2021, Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, and the Taxes and Levies (Approved List for Collection) Act.  This followed the adoption of a motion sponsored by Hon. […]

The House of Representatives has summoned several oil and gas companies operating in Imo State over alleged violations of the Petroleum Industry Act (PIA) 2021, Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, and the Taxes and Levies (Approved List for Collection) Act.

 This followed the adoption of a motion sponsored by Hon. Chike John Okafor (APC, Imo)

 Hon. Okafor named Seplat Energy Plc (OML 53), Niger Delta Petroleum Resources (OML 54), Sterling Oil Exploration & Energy Production Co. Ltd. (SEEPCO), Waltersmith Petroman Oil Ltd. (OML 16), Associate Oil & Gas Ltd/Dansaki Petroleum Ltd (Umuseti/Igwe Field), Chorus Energy Ltd, TotalEnergies/NNPC JV, and the Nigerian National Petroleum Company (NNPC) Ltd., among the firms accused of breaching key provisions of the laws.

 He said the companies have allegedly failed to establish functional operational offices within their host communities as required under Section 3(j) of the NOGICD Act, 2010, thereby depriving the state of economic activity, employment opportunities, and direct investment.

 Okafor also accused the firms of systematically ignoring local content provisions by failing to employ qualified indigenes of Imo State or award contracts to competent Nigerian companies, particularly those from host communities.

He further expressed concern over the alleged obstruction of the Imo State Internal Revenue Service (IIRS) from accessing company premises for lawful tax assessment and collection, and the refusal of the oil firms to implement the Host Communities Development Trusts (HCDTs) as required under Chapter 3 of the PIA.

 

 

 

The lawmaker warned that such persistent non-compliance could trigger widespread agitation and unrest in oil-producing areas of Imo State, threatening national security, disrupting oil production, and causing severe economic losses.

 

 

 

Adopting the motion, the House urged all oil and gas companies operating in Imo State to comply fully with the provisions of the NOGICD Act on indigenous employment, local contracting, and operational presence in host communities.

 

 

 

The House further mandated the Committee on Nigerian Content Development and Monitoring to invite the Chief Executives of the affected oil companies, alongside the heads of the Nigerian Content Development and Monitoring Board (NCDMB), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Imo State Internal Revenue Service, for questioning.

 

 

 

Additionally, the Committees on Corporate Social Responsibility, Petroleum Resources (Upstream and Downstream), Finance, and Justice were directed to jointly investigate the alleged breaches of the relevant laws and assess the status of Host Community Development Trust implementation in Imo State.

 

 

 

They are to report back to the House within four legislative weeks for further legislative action.