Reps Move To Probe Oil Firms Over Alleged Breach Of Nigerian Laws In Imo State

The House of Representatives has mandated its relevant committees to probe allegations of gross violations of key oil and gas regulations, including the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, the Petroleum Industry Act (PIA) 2021, and the Taxes and Levies Act, by oil and gas companies operating in Imo State.

According to Ireporter Online, the resolution was adopted following a motion on notice, urging all oil firms in the state to immediately comply with the NOGICD Act provisions relating to indigenous employment, contract awards, and the establishment of operational offices within their host communities.

The lawmakers also demanded full implementation of the Host Communities Development Trusts as stipulated under the PIA 2021, stressing that companies must grant unhindered access to officials of the Imo State Internal Revenue Service (IIRS) for tax-related duties and engage local leaders in meaningful dialogue to address grievances and promote peaceful coexistence.

Leading the motion, Hon. Okafor emphasized that the NOGICD Act was designed to promote Nigerian participation in the oil and gas industry by ensuring the use of local manpower and materials. He noted that the PIA provides a comprehensive framework for regulating the petroleum sector, including environmental protection and equitable benefit-sharing mechanisms for host communities.

He further explained that the Taxes and Levies Act empowers state governments to collect specific revenues from businesses operating within their territories, an essential tool for funding state infrastructure and public services.

Okafor identified several international and indigenous oil firms allegedly defaulting in Imo State, including 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, Chorus Energy Ltd (formerly Shell Portfolio), TotalEnergies/NNPC Joint Venture, and NNPC Limited.

He raised concerns over persistent complaints from host communities and the state government regarding the companies’ failure to establish operational offices in Imo, as required by Section 3(j) of the NOGICD Act, thereby depriving the state of job opportunities and economic benefits.

The lawmaker also accused the companies of flouting local content laws by neglecting to employ qualified indigenes and awarding contracts to foreign or non-local firms, contrary to Sections 11, 28, and 35 of the Act. He noted that the firms had also hindered the lawful tax collection efforts of the Imo State Internal Revenue Service and failed to implement the Host Community Trust provisions under the PIA, 2021.

Okafor warned that continued disregard for these laws could heighten community unrest, threaten national security, and disrupt vital oil and gas infrastructure. He stressed that immediate compliance and proactive engagement with host communities are critical to maintaining peace and protecting the national economy.