Reps to investigate oil firms over breach of local content, PIA, tax laws

The House of Representatives has launched a probe into alleged violations of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, non-compliance with the Petroleum Industry Act (PIA) 2021, and tax evasion by oil and gas companies operating in Imo State.

This followed the adoption of a motion moved on Wednesday by Hon. Deacon Chike John Okafor, representing Ehime Mbano/Ihitte Uboma/Obowo Federal Constituency, who accused several international and indigenous operators of consistently disregarding statutory obligations in oil-producing communities such as Ohaji/Egbema, Oguta, and nearby local government areas.

Okafor listed the companies under scrutiny to include Seplat Energy Plc (OML 53), Niger Delta Petroleum Resources (OML 54), Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO), Waltersmith Petroman Oil Ltd (OML 16), Associate Oil & Gas Ltd/Dansaki Petroleum Ltd Consortium (Umuseti/Igwe marginal field), Chorus Energy Ltd (formerly Shell portfolio), TotalEnergies/NNPC Joint Venture, and NNPC Ltd.

He alleged that many of these firms failed to establish operational offices within Imo State as required by Section 3(j) of the NOGICD Act, 2010—thereby depriving the state of vital economic activity, jobs, and internally generated revenue.

The lawmaker further accused the companies of excluding qualified indigenes from employment opportunities, denying local contractors access to projects, and obstructing the Imo State Internal Revenue Service (IIRS) from carrying out lawful tax assessments and collections.

Okafor also faulted the operators for not implementing the Host Communities Development Trust (HCDT) as stipulated in Chapter 3 of the PIA 2021, describing the neglect as a deliberate attempt to deny host communities their statutory development benefits.

“These persistent acts of non-compliance and impunity have caused deep frustration among host communities,” Okafor said.

“Without timely intervention, the situation could escalate into unrest, disrupt oil production, and threaten national stability.”

Following deliberations, the House directed all oil and gas companies operating in Imo State to fully comply with the provisions of the NOGICD Act, the PIA, and all relevant tax laws.

It also instructed the companies to grant the IIRS unrestricted access for lawful tax assessments and to engage host communities in good faith to address grievances.

The House further mandated its Committee on Nigerian Content Development and Monitoring to summon the chief executives of the affected oil firms, as well as the heads of the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Imo State Internal Revenue Service, for an investigative hearing.

Additionally, the Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream and Downstream), Finance, and Justice were directed to jointly investigate the allegations and report back within four legislative weeks.