The House of Representatives has mandated its Committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream, Downstream and Midstream), Finance and Justice to probe oil companies operating in the country, especially Imo State, over alleged violation of the Nigerian Oil and Gas Industry Content Development Act, 2010.
This decision followed the adoption on Wednesday during plenary of a motion of urgent public importance brought on the floor by Imo lawmaker, Hon Chike Okafor.
In 2021, the Senate, through its Committee on Local Content, accused a Korean firm, Daewoo Engineering and Construction Limited, of violating Section 31 of the NOGICD Act 2010, noting that the law required a Nigerian citizen to understudy any position held by a foreigner working in the nation’s oil and gas sector.
Similarly, host communities in oil-producing companies had at one time or another, kicked against the flagrant violations of the Petroleum Industry Act, calling the government’s attention to the need to protect the environment from the harmful effects of oil exploration.
The NOGICD Act was enacted to promote the utilisation of Nigerian human and material resources and the participation of Nigerian companies in the oil and gas industry.
The PIA 2021 is the legal and regulatory framework for the Nigerian petroleum industry, including specific provisions for host community development, environmental management, and equitable benefit sharing of dividends to concerned stakeholders.
Apart from these legal frameworks, 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.
Addressing his colleagues on Wednesday at a plenary presided over by the Deputy Speaker Benjamin Kalu, Okafor explained that several foreign and local oil companies operate oil and gas fields within the oil-producing communities of Imo State.
According to him, these companies include Seplat Energy Plc, Niger Delta Petroleum Resources, Sterling Oil Exploration and Energy Production Company Limited and WalterSmith Petroman Oil Limited.
Others include Associate Oil and Gas Limited/Dansaki Petroleum Limited, Chorus Energy Limited, TotalEnergies / NNPC Joint Venture and the Nigerian National Petroleum Company Limited
The House also directed the companies to comply with the Host Communities Development Trust requirements under the PIA, 2021.
The House also mandated the companies operating in the areas to grant “Unfettered access to officials of the Imo State Internal Revenue Service for the performance of their lawful duties, engage in genuine dialogue with host community leaders to address grievances and ensure peaceful coexistence
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