The Nigerian Content Development and Monitoring Board (NCDMB) has reaffirmed its commitment to enforcing local content regulations in the oil and gas industry, as it investigates alleged expatriate quota abuses by Sterling Oil Exploration and Energy Production Company (SEEPCO).
The Board’s intervention follows concerns raised by the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr. Festus Osifo, during a protest at SEEPCO’s headquarters in Victoria Island, Lagos. Osifo accused the company of anti-labour practices and violations of expatriate quota regulations.
NCDMB’s Enforcement Actions
NCDMB acknowledged PENGASSAN’s efforts in exposing the alleged infractions and assured that the matter would be thoroughly investigated. The Board outlined its past and ongoing regulatory actions against SEEPCO, which include:
2017: NCDMB identified five expatriates employed by SEEPCO without approval and penalized the company. As part of remediation, SEEPCO was mandated to train five Nigerians in Marine Engineering and Subsurface Drilling Engineering.
2018: The Board discovered that SEEPCO had deployed 402 expatriates without approval and executed projects without due process. SEEPCO was directed to disengage the expatriates, comply with local content laws, and remit outstanding contributions to the Nigerian Content Development Fund (NCDF). The company was also instructed to train and employ 40 Nigerians. However, SEEPCO initially refused to comply, leading NCDMB to initiate legal proceedings under Section 68 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
2020: SEEPCO sought an out-of-court settlement and agreed to address compliance issues. While the company trained 40 Nigerians by 2022, it failed to fulfill its employment commitment and only made partial remittances to the NCDF.
2023: SEEPCO obtained expatriate quota approval for three positions, bringing its total approved expatriate positions to seven between 2017 and 2023.
Future Compliance Measures
The NCDMB has scheduled a statutory compliance review session with SEEPCO for March 2025. The Board emphasized that expatriate quota enforcement applies strictly to companies operating in the oil and gas sector, while non-oil and gas companies fall under the jurisdiction of the Ministry of Interior.
Commitment to Local Content Enforcement
Reaffirming its commitment to Nigerian content development, the NCDMB stated that it will continue to enforce the NOGICD Act to create employment opportunities, deepen local participation in the oil and gas industry, and boost the economy. The Board warned that companies violating the Act would face strict sanctions and encouraged continued collaboration with stakeholders, including labour unions, to uphold industry regulations.
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