The House of Representatives has mandated its relevant committees to investigate allegations bothering on flagrant abuse of due process, violation of local content laws, breach of provisions of the Petroleum Industry Act and non-compliance with tax laws by oil and gas companies operating in Imo State.
The resolution followed the adoption of a motion of urgent public importance by an Imo lawmaker, Chike Okafor at plenary.
Moving the motion, 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.
He said, “The House is aware of the persistent outcry and allegations from host communities and the 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.
“We are concerned about the 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.
The House is worried about the refusal to award contracts to competent Nigerian companies, especially those from the host communities, for goods and services.
“We are also aware of the obstruction of lawful efforts by the Imo State Government and Imo State Internal Revenue Service to access their premises for assessment and collection of legally approved state taxes and levies.
Another issue is the non-compliance with the Host Communities Development Trust provisions under Chapter 3 of the PIA, 2021, leading to a lack of tangible benefits and development in these communities.”
According to the lawmaker, 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.”
The motion was supported by the lawmakers when it was put to a voice vote by the Deputy Speaker, Benjamin Kalu who presided.
The House therefore mandated all oil and gas companies operating in the state to henceforth comply with the NOGICD Act in the areas of indigenous employment, contract awards, and establishment of operational offices.
It also directed the companies to comply with the Host Communities Development Trust requirements under the PIA, 2021. 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.”
It further mandated its Committee on Nigerian Content Development and Monitoring to invite “The Chief Executives of the seven concerned oil companies, the Nigerian Content Development and Monitoring Board, the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission and the Chairman of Imo State Internal Revenue Service for questioning.
