The House of Representatives has directed a multi-committee probe into oil companies operating in Nigeria—particularly those in Imo State—over alleged violations of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, and the Petroleum Industry Act (PIA), 2021.

The decision followed a motion of urgent public importance moved on Wednesday by Hon. Chike Okafor, who represents Imo State in the House.

According to Okafor, several multinational and local oil companies have repeatedly disregarded legal provisions designed to protect host communities and promote indigenous participation in the oil and gas sector.

“There have been persistent complaints from host communities and the Imo State Government about the refusal of these firms to establish operational offices within their areas of operation, as required under Section 3(j) of the NOGICD Act,” Okafor told lawmakers during plenary presided over by Deputy Speaker Benjamin Kalu.

He identified some of the companies operating in the affected communities to include Seplat Energy Plc, Niger Delta Petroleum Resources, Sterling Oil Exploration and Energy Production Company, WalterSmith Petroman Oil Limited, Associate Oil and Gas Limited/Dansaki Petroleum Limited, Chorus Energy Limited, and the TotalEnergies/NNPC Joint Venture.

Alleged Breaches

Okafor accused the companies of failing to:

• Give priority to qualified indigenes of Imo State in employment and contracting,
• Award contracts to competent Nigerian-owned firms, particularly those from host communities, and
• Grant the Imo State Internal Revenue Service (IRS) access for lawful tax assessments and collections.

He also cited widespread non-compliance with the Host Communities Development Trust provisions of the PIA 2021, which require oil firms to invest in the welfare and development of communities where they operate.

“If these breaches are not urgently addressed, they could trigger protests, disrupt oil production, and threaten national security,” Okafor warned.

House Resolutions

Following debate, the House unanimously adopted the motion and mandated all oil firms operating in Imo State to:

• Fully comply with the NOGICD Act regarding local employment, contracting, and establishment of operational offices,
• Adhere to the Host Communities Development Trust obligations under the PIA, and
• Allow unhindered access to officials of the Imo State IRS for lawful duties.

The committees on Nigerian Content Development and Monitoring, Corporate Social Responsibility, Petroleum Resources (Upstream, Downstream, and Midstream), Finance, and Justice were directed to conduct a comprehensive investigation.

The panels will also invite the chief executives of the implicated oil companies, the Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Imo State IRS for questioning.