The House of Representatives has decried the flagrant abuse of due process, infringement of local content, disobedience to the Petroleum Industry Act (PIA) and non-compliance with tax laws by oil and gas companies operating in Imo State.

To this end, the green chamber urged the oil and gas companies operating in Imo State to urgently comply with the provisions of the Nigerian Oil and Gas Industry Content (NOGICD) Act 2010 regarding indigenous employment, contract awards and establishment of operational offices.

The House also urged the oil companies to engage in genuine dialogue with host community leaders to address grievances and ensure peaceful coexistence.

The resolution of the House followed the adoption of a motion moved at the plenary on Wednesday by Hon. Chike Okafor.

Presenting the motion, Okafor said that the NOGICD Act, 2010 was enacted to promote the utilization of Nigerian human and material resources and the participation of Nigerian companies in the oil and gas industry.

He added that the Petroleum Industry Act (PIA), 2021 provides a robust legal and regulatory framework for the Nigerian petroleum industry, including specific provisions for host community development, environmental management, and equitable benefit sharing.

Okafor noted that the Taxes and Levies (Approved List for Collection) Act authorizes state governments to collect certain taxes and levies from businesses operating within their territories, which is crucial for funding state infrastructure and social services.

The lawmaker pointed out that several International and Indigenous Oil Companies (IOCs) operating in the oil and gas fields within the oil-producing communities of Imo State, notably in Ohaji/Egbema, Oguta, and other LGAs as their hosts.

He said the companies are: Seplat Energy Plc: – OML 53; Niger Delta Petroleum Resources (NDPR): – OML 54; Sterling Oil Exploration & Energy Production Co. Ltd (SEEPCO); WalterSmith Petroman Oil Limited: – OML 16; Associate Oil and Gas Limited/Dansaki Petroleum Limited (A Consortium): UmusetijIgwe marginal field; Chorus Energy Limited (formerly Shell Portfolio); TotalEnergies/NNPC Joint Venture; and Nigerian National Petroleum Corporation (NNPC) Limited.

Okafor also pointed out the persistent outcry and allegations from host communities and 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 the valuable economic activity and employment.

He also lamented the systematic failure of the 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.

Okafor further decried the refusal to award contracts to competent Nigerian companies, especially those from the host communities, for goods and services.

He lamented the obstruction of lawful efforts by the Imo State Government and Imo State Internal Revenue Service (IIRS) to access their premises for assessment and collection of legally approved state taxes and levies.

The lawmaker also decried 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.

Okafor expressed concern that these acts of non-compliance have led to immense frustration, widespread agitations, and a palpable threat of social unrest within the host communities.

He also expressed concern that the continued neglect and infringement of these laws, if not urgently addressed, might lead to violent protests that could threaten national security, destruction of critical oil and gas infrastructure, disrupting production and harming the national economy in the oil-producing regions of Imo State.

The House resolved: “Urge the oil and gas companies operating in Imo State to urgently comply with: Provisions of the Nigerian Oil and Gas Industry Content (NOGICD) Act 2010 regarding indigenous employment, contract awards and establishment of operational offices;

“The Host Communities Development Trust requirements under the Petroleum Industry Act (PIA) 2021. (THISDAY)

• Hon. Chike Okafor moved the motion for the adoption of the provisions of the NOGICD Act 2010 by oil companies operating in Imo State