The house of representatives has resolved to investigate allegations of non-compliance with local content, tax, and petroleum industry laws by oil and gas companies in Imo state.
The resolution followed the adoption of a motion sponsored by Chike Okafor, a member representing the Ehime Mbano/Ihitte Uboma/Obowo federal constituency of Imo, during Wednesday’s plenary.
Moving the motion, Okafor said the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, was enacted to promote the utilisation of human and material resources, and the participation of Nigerian companies in the oil and gas industry.
He said the Petroleum Industry Act (PIA), 2021, provides a regulatory framework for the petroleum industry, including specific provisions for host community development, environmental management, and equitable benefit sharing.
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The lawmaker noted 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.
Okafor said several international and indigenous oil companies (IOCs) operating fields within the oil-producing communities in Ohaji/Egbema, Oguta, and other LGAs of the state are violating the laws.
He said the companies include Seplat Energy Plc (OML 53), Niger Delta Petroleum Resources (OML 54), Sterling Oil Exploration & Energy Production Company Ltd (SEEPCO), WalterSmith Petroman Oil Limited (OML 16), Associate Oil & Gas Limited/Dansaki Petroleum Limited (Umuseti/Igwe marginal field), Chorus Energy Limited, TotalEnergies/NNPC Joint Venture, and NNPC Limited.
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Okafor said there have been persistent outcries and allegations from host communities and the state government over oil companies’ failure to establish functional operational offices within their areas of operation, depriving the state of economic opportunities and employment.
The lawmaker said the companies have failed to prioritise the employment of qualified indigenes, refused to award contracts to competent Nigerian firms, particularly those from host communities, obstructed lawful efforts by the government and the Imo State Internal Revenue Service (IIRS) to conduct tax assessments and collections, and neglected to comply with the provisions of the Host Communities Development Trust.
Okafor said the continued neglect and infringement of the laws, if not urgently addressed, may lead to violent protests that could threaten national security, destruction of critical oil and gas infrastructure, disrupt production, harm the national economy and cause a breakdown of law and order in the oil-producing regions of Imo.
The motion was adopted when Benjamin Kalu, the deputy speaker, called for a voice vote.
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