NNPCL, TotalEnergies, Seplat Energy Plc and others have been listed among oil companies violating local content, PIA, and tax laws in Imo State
The House of Representatives has resolved to investigate several oil and gas companies operating in Imo State over alleged violations of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, the Petroleum Industry Act (PIA), 2021, and relevant tax laws.
This followed the adoption of a motion sponsored by Rep. Chike John Okafor (APC Imo), during Wednesday’s plenary session.
Presenting the motion titled “Flagrant Abuse of Due Process and Infringement of Local Content, Disobedience to Petroleum Industry Act, and Non-Compliance with Tax Laws by Oil and Gas Companies Operating in Imo State,” Rep. Okafor expressed deep concern over the conduct of international and indigenous oil companies operating in the state.
He listed the affected companies to include Seplat Energy Plc (OML 53), Niger Delta Petroleum Resources (OML 54), Sterling Oil Exploration and Energy Production Company Limited (SEEPCO), Waltersmith Petroman Oil Limited (OML 16), Associate Oil & Gas Limited/Dansaki Petroleum Limited, Chorus Energy Limited, TotalEnergies/NNPC Joint Venture, and the Nigerian National Petroleum Company (NNPC) Limited.
According to Rep. Okafor, these companies have consistently flouted provisions of key industry laws and denied host communities their statutory benefits.
“The Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, was enacted to promote the utilization of Nigerian human and material resources and the participation of local companies in the oil and gas industry,” he stated. “Similarly, the Petroleum Industry Act, 2021, provides a robust framework for host community development, environmental management, and equitable benefit sharing. Unfortunately, these laws are being flagrantly violated in Imo State.”
He noted that despite operating within oil-producing communities such as Ohaji/Egbema and Oguta, many companies have failed to establish functional operational offices in the state as required by law.
“Section 3(j) of the NOGICD Act mandates oil companies to establish operational offices within their areas of operation,” he said. “However, most of these firms have continued to operate remotely from Lagos and Port Harcourt, denying Imo State valuable economic activity and employment opportunities.”
The lawmaker further accused the companies of systematically excluding qualified indigenes from employment and contract opportunities, in violation of Sections 11, 28, and 35 of the NOGICD Act.
“Despite having competent professionals, our people are being sidelined,” he lamented. “Contracts that should empower host communities are instead awarded to outsiders, undermining local capacity development.”
Okafor also faulted the companies for allegedly obstructing officials of the Imo State Internal Revenue Service (IIRS) from carrying out legitimate tax assessments and collections.
“These oil companies have denied state revenue officials access to their premises, in clear violation of the Taxes and Levies (Approved List for Collection) Act,” he added. “This has deprived the state of much-needed funds for infrastructure and social development.”
He decried the firms’ failure to comply with the Host Communities Development Trust provisions of the PIA, which are designed to ensure that oil-producing communities benefit directly from petroleum operations.
“The non-compliance with the Host Communities Development Trust provisions has resulted in widespread frustration, agitations, and a growing sense of neglect among host communities,” Okafor warned. “If not urgently addressed, these grievances could escalate into violent protests that may threaten national security and disrupt oil production.”
Adopting the motion, the House urged all oil and gas companies operating in Imo State to immediately comply with the provisions of the NOGICD Act and PIA, as well as grant unfettered access to IIRS officials for tax-related duties.
It further mandated its Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream, Midtream and Downstream), Finance, and Justice to investigate the allegations and report back within four legislative weeks.
The House also directed the Committee on Nigerian Content Development and Monitoring to summon the chief executives of the affected oil companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Chairman of the Imo State Internal Revenue Service for questioning.
