The House of Representatives has ordered a comprehensive investigation into 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 and the Petroleum Industry Act (PIA), 2021.
The decision followed the adoption of a motion of urgent public importance moved on Wednesday by Hon. Chike Okafor, who represents Imo State.
According to Okafor, several local and foreign oil firms operating within the state including Seplat Energy Plc, Niger Delta Petroleum Resources, Sterling Oil Exploration and Energy Production Company Limited, WalterSmith Petroman Oil Limited, Associate Oil and Gas Limited/Dansaki Petroleum Limited, Chorus Energy Limited, and TotalEnergies/NNPC Joint Venture have allegedly failed to comply with statutory provisions that promote Nigerian participation and protect host communities.
He told lawmakers during plenary, presided over by Deputy Speaker Benjamin Kalu, that the companies have consistently ignored Section 3(j) of the NOGICD Act, which mandates them to establish operational offices in their areas of operation. This, he said, has deprived the state of significant economic benefits and job opportunities.
Okafor further alleged that the firms have flouted provisions requiring the prioritisation of qualified local indigenes for employment and the awarding of contracts to competent Nigerian firms, especially those from host communities. He also accused some companies of obstructing the Imo State Internal Revenue Service from carrying out tax assessments and collections.
“The continued neglect and infringement of these laws, if not urgently addressed, may lead to violent protests that could threaten national security, destroy critical oil and gas infrastructure, disrupt production, and harm the national economy,” Okafor warned.
The lawmaker also cited the companies’ non-compliance with the Host Communities Development Trust provisions under the PIA 2021, noting that it has led to a lack of tangible development in oil-producing areas.
Following deliberations, the House unanimously resolved to direct all oil companies in Imo State to comply with the provisions of both the NOGICD Act and the PIA, particularly in the areas of local employment, contract awards, and community development.
The House also mandated the companies to grant unhindered access to officials of the Imo State Internal Revenue Service for lawful tax operations and to engage in genuine dialogue with host community leaders to foster peace and cooperation.
Furthermore, the Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream, Downstream, and Midstream), Finance, and Justice were directed to summon the Chief Executives of the seven concerned oil companies, along with the Nigerian Content Development and Monitoring Board, the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission, and the Chairman of the Imo State Internal Revenue Service for questioning.
The probe is expected to determine the extent of compliance with the relevant laws and ensure that host communities benefit from oil and gas operations as stipulated by Nigeria’s local content and petroleum frameworks.
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