Reps to probe oil and gas firms over alleged abuse of Local Content and PIA Acts, non-compliance with tax laws in Imo

JONAS EZIEKE, Abuja

The House of Representatives has mandated its Committee on Local Content and Petroleum Resources (Mid-Stream) to investigate the frequent abuse and flagrant infringement of the Local Content Act and Petroleum Industry Act, as well as disobedience and non-compliance with tax laws in their operational bases in Imo State.

The House resolution was sequel to the adoption of a motion moved by Hon Dr Chike John Okafor on the matter on the floor of the House at plenary on Wednesday at the National Assembly..

Debating the motion, Okafor noted that there is something wrong about the conduct of oil and gas companies operating in Imo State who take for granted laws made by the National Assembly and at the same challenge its legislative authority and the well-being of the people of Imo State and Nigeria at large.

He further stated that Section 3 ( j ) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, explicitly requires all oil and gas operators to establish operational offices in their areas of operation, particularly in host communities.

According to the lawmaker, this requirement serves multiple purposes like creating employment opportunities, facilitating technology transfer, ensuring quicker response times to community needs, and demonstrating commitment to host community development noting that no oil and gas companies operating in Imo State has an operating office in the State.

He said that Section 40 of the Petroleum Industry Act (PIA) 2021 unconditionally recognizes the taxation powers of states, by requiring operators to comply with all applicable laws, including those related to taxation.

The PIA establishes a framework for cooperation between federal and state authorities in regulatory matters, including taxation.

The Imo born lawmaker further lamented of the abuse by these oil and gas firms of the provisions of Paragraph 14 of the Schedule to the Taxes and Levies (Approved List for Collection) Act:

This provision he pointed out to the House authorizes state governments to collect various taxes from businesses operating within their territories, including property taxes, business premises registration fees, and development levies.

He said: “This legal authority provides the foundation for state access to oil company facilities for assessment and collection purposes, a situation which the oil and gas companies operating in Imo State has blatantly refused the Imo State Internal Revenue Service, access to do their lawful responsibility.

“Mr. Speaker, Section 28 of the NOGICD Act (2010) requires all oil and gas operators and contractors in the oil and gas industry to give first consideration to Nigerian individuals and companies in the award of contracts and employment opportunities.

“The provision mandates that operators must submit detailed Nigerian Content Recruitment and Training Plans to the Nigerian Content Development and Monitoring Board (NCDMB) for approval, ensuring systematic inclusion of host community members in employment opportunities a situation which Imo State indigenes are completely sidelined and not given employment opportunities”.

Okafor while arguing the motion called on the parliament to ensure that the letter and spirit of the motion is heeded as he lamented uncontrollably that laws made in the hallowed chamber, passed and assented to, are being intentionally disobeyed by oil and gas companies operating in Imo State.

He added that when a section of our citizenry is subjected to such brazen exploitation, and the laws the parliament enacted are treated with contempt, they must act decisively.

He listed the major oil companies that are in the habit of the constant abuse of these legislations as Seplat Energy Ltd, Sterling Oil and Gas Ltd, Associated Oil and Gas Ltd, Corox Energy Ltd, Total Energy Ltd and Nigeria National Petroleum Company Ltd NNPCL among other oil and gas companies.

Consequently,the House presided over by the Deputy Speaker Hon.Benjamin Kalu unanimously adopted the motion with a voice vote.

He also directed that the Nigerian Content Development and Monitoring Board NCDMB engages the Chief Executive Officers CEOs of these oil and gas firms on the areas where they allegedly flouted the Nigerian laws.

The presiding officer mandated the House Committee on Local Content and the House Committee on Petroleum Resources ( Mid-Stream ) to jointly investigate the matter and report back to the House in four weeks for further action.

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