Reps probe oil companies over violation of Petroleum Industry Act

The House of Representatives on Wednesday unveiled plans to investigate allegations bothering on flagrant abuse of due process, violation of local content laws, breach of provisions of the Petroleum Industry Act, 2021, and non-compliance with tax laws by oil and gas companies operating in Imo State.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Patrick Okafor, who solicited the House’s intervention.

In his lead debate, Hon. Okafor, who represents Ehime Mbano/Ihitte Uboma/Obowo Federal Constituency of Imo State, expressed grave concern that several international and indigenous oil companies operating in the state, including Seplat Energy Plc, Niger Delta Petroleum Resources (NDPR), Sterling Oil Exploration & Energy Production Co. Ltd. (SEEPCO), Waltersmith Petroman Oil Limited, Associate Oil & Gas Limited, Chorus Energy Limited, TotalEnergies/NNPC JV, and NNPC Limited, have allegedly failed to comply with key legal provisions governing the sector.

According to him, these companies have “blatantly disregarded” provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, the Petroleum Industry Act (PIA) 2021, and the Taxes and Levies (Approved List for Collection) Act.

He further alleged that the companies have persistently violated Sections 11, 28, and 35 of the NOGICD Act by neglecting to employ qualified indigenes of Imo State and refusing to award contracts to competent Nigerian firms, particularly those from the host communities.

“It is worrisome that these companies have failed to establish functional operational offices within their host communities as mandated by law, thereby denying Imo State valuable economic activity and employment opportunities.

“They have also obstructed lawful efforts by the Imo State Government and the Internal Revenue Service (IIRS) to assess and collect approved state taxes and levies,” the Okafor stated.

He noted that the companies’ failure to comply with the Host Communities Development Trust (HCDT) provisions of the Petroleum Industry Act has deprived host communities in Ohaji/Egbema, Oguta, and other oil-producing areas of much-needed development projects.

“This investigation is not a witch-hunt. It is about fairness, compliance with the law, and ensuring that host communities in Imo State benefit from the resources extracted from their land.

“These acts of non-compliance have led to immense frustration and growing agitation among the people, posing a palpable threat of social unrest in the oil-producing communities,” he said.

The lawmaker cautioned that continued neglect and disobedience to statutory obligations could trigger violent protests, disrupt oil production, and threaten national security.

The House unanimously adopted the motion, and urged all oil and gas companies operating in Imo State to urgently comply with the provisions of the NOGICD Act and PIA, ensure the employment of indigenous workers, establish operational offices in their host areas, and allow state tax officials lawful access to their premises.

To this end, the House mandated its Committee on Nigerian Content Development and Monitoring to invite the chief executives of the seven oil companies, heads of the Nigerian Content Development and Monitoring Board (NCDMB), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Imo State Internal Revenue Service for questioning.

The House further mandated its Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream), Petroleum Resources (Downstream), Midstream, Finance, and Justice to investigate the alleged violations and report back within four weeks for further legislative actions.

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