Chike Okafor Tackles Oil Companies Operating in Imo for Neglecting Indigenes in Employment Plans.
*Hails Uzodinma’s Efforts
The Federal House of Representatives on Wednesday urged oil and gas companies operating in Imo State to urgently comply with the provisions of the Nigerian Oil and Gas Industry Content (NOGICD) Act 2010 regarding indigenous employment, contract awards and establishment of operational offices.
The companies are: Seplat Energy Plc: – OML 53, Niger Delta Petroleum Resources (NDPR): – OML 54, Sterling Oil Exploration & Energy Production Co. Ltd. (SEEPCO), WalterSmith Petroman Oil Limited: – OML 16 and Associate Oil & Gas Limited/Dansaki Petroleum Limited (A Consortium): Umuseti/Igwe marginal field.
The rest are Chorus Energy Limited (Formerly Shell Portfolio), TotalEnergies / NNPC Joint Venture and the Nigerian National Petroleum Corporation (NNPC) Limited.
This followed the adoption of a motion sponsored by Hon. Chike Okafor (APC, Imo) 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 on Imo state at the plenary presided over by Deputy Speaker Benjamin Kalu.
In adopting the motion, the House asked the companies to grant unfettered access to officials of the Imo State Internal Revenue Service for the performance of their lawful duties.
The House also mandated the Committee on Nigerian Content Development and Monitoring to invite the Chief Executives of the seven (7) concerned Oil Companies, the Chief Executives of the Nigerian Content Development and Monitoring Board (NCDMB), the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Chairman of Imo State Internal Revenue Service for questioning.
It also mandated the Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream), Petroleum Resources (Downstream), Finance, and Justice to investigate the specific allegations of violations of the NOGICD Act 2010, PIA 2021, and Taxes and Levies Act by all Oil and Gas Companies operating in Imo State and the status of implementation of the Host Community Development Trusts in Imo State and report within four (4) legislative weeks.
While presenting the motion, Hon. Okafor noted that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, was enacted to promote the utilisation of Nigerian human and material resources, and the participation of Nigerian companies in the oil and gas industry.
He also noted that the Petroleum Industry Act (PIA), 2021, provides a robust legal and regulatory framework for the Nigerian petroleum industry, including specific provisions for host community development, environmental management, and equitable benefit sharing.
“Aware that the Taxes and Levies (Approved List for Collection) Act authorises State Governments to collect certain taxes and levies from businesses operating within their territories, which is crucial for funding state infrastructure and social services;
“Further notes that several International and Indigenous Oil Companies (IOCs) operating oil and gas fields within the oil-producing communities of Imo State, notably in Ohaji/Egbema, Oguta and other LGAs as hosts, namely:
“Also Aware of persistent outcry and allegations from host communities and state Government regarding the failure to establish functional operational offices within their areas of operation in Imo State as mandated by Section 3(j) of the NOGICD Act, 2010, thereby denying the state valuable economic activity and employment;
“Systematic failure of these companies to prioritise the employment of qualified indigenes of Imo State, in direct violation of Sections 11, 28, and 35 of the NOGICD Act, 2010; refusal to award contracts to competent Nigerian companies, especially those from the host communities, for goods and services.
“Obstruction of lawful efforts by the Imo State Government and Imo State Internal Revenue Service (IIRS) to access their premises for assessment and collection of legally approved state taxes and levies”
“Non-compliance with the Host Communities Development Trust provisions under Chapter 3 of the PIA, 2021, leads to a lack of tangible benefits and development in these communities.
“Concerned that these acts of non-compliance have led to immense frustration, widespread agitations, and a palpable threat of social unrest within the host communities.
“Also concerned that the continued neglect and infringement of these laws, if not urgently addressed, may lead to violent protests that could threaten national security, destruction of critical oil and gas infrastructure, disrupting production and harming the national economy and a breakdown of law and order in the oil-producing regions of Imo State”.
