The House of Representatives will investigate alleged violations of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, non-compliance with the Petroleum Industry Act (PIA) 2021, and evasion of tax obligations by oil and gas companies operating in Imo State.
The resolution was sequel to the adoption of a motion moved on Wednesday by Hon. Deacon Chike John Okafor, representing Ehime Mbano/Ihitte Uboma/Obowo Federal Constituency.
He faulted the persistent disregard for statutory obligations by both international and indigenous operators in oil-bearing communities of Ohaji/Egbema, Oguta, and neighboring local government areas.
While presenting the motion during plenary, Okafor listed several companies, including Seplat Energy Plc (OML 53), Niger Delta Petroleum Resources (NDPR), 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, as allegedly operating in contravention of extant laws.
He alleged that the companies have failed to establish operational offices within Imo State as required by Section 3(j) of the NOGICD Act, 2010, thereby depriving the state of crucial economic activities, employment opportunities, and tax revenue.
He further accused the firms of sidelining qualified indigenes in employment, denying local contractors fair participation in projects, and frustrating the efforts of the Imo State Internal Revenue Service (IIRS) in lawful tax assessment and collection.
Okafor also criticized the companies for failing to implement the Host Communities Development Trust (HCDT) as mandated by Chapter 3 of the PIA 2021, describing the omission as a deliberate act that has denied oil-producing communities access to legally guaranteed development benefits.
“These consistent acts of non-compliance and impunity have heightened frustration and tension among the host communities,” Okafor warned. “Without prompt intervention, the situation could degenerate into unrest, disrupt oil production, and threaten national stability.”
The House directed all oil and gas firms operating in Imo State to comply fully with the provisions of the NOGICD Act, the PIA, and all applicable tax laws. It also urged the companies to grant the IIRS full access to their operations for lawful tax purposes and to engage with host communities in good faith to resolve grievances.
Besides, the House mandated its Committee on Nigerian Content Development and Monitoring to summon the Chief Executives of the affected companies, alongside 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.
It further instructed the Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream and Downstream), Finance, and Justice to jointly investigate the allegations and report back within four legislative weeks.