The Nigerian Content Development and Monitoring Board (NCDMB) has said it will investigate Sterling Oil Exploration and Energy Production Company (SEEPCO) over alleged expatriate quota violations and anti-labour practices.
This is contained in a press statement issued by the board on Monday, in which it reaffirmed its commitment to enforcing local content laws in the oil and gas sector.
The NCDMB’s statement comes after a protest by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at SEEPCO’s headquarters in Lagos.
During the protest, the National President of PENGASSAN, Festus Osifo, raised concerns over the SEEPCO’s alleged preference for expatriates over qualified Nigerian workers.
The Board commended the union for bringing the matter to public attention, emphasizing that it has taken enforcement actions against SEEPCO in the past.
NCDMB noted that through its Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, it has ensured that 609 technical positions were Nigerianised between 2020 and 2024, reinforcing Nigeria’s capacity to manage complex oil and gas operations.
The NCDMB assured PENGASSAN and the public that it would conduct a thorough investigation into SEEPCO’s latest alleged violations.
SEEPCO’s history of violations
The NCDMB disclosed that SEEPCO had previously faced sanctions for breaching Nigerian content laws.
- In 2017, the Board penalized the company after discovering five expatriates working without necessary approvals. To remediate the violation, SEEPCO was directed to train five Nigerians in Marine Engineering and Subsurface Drilling Engineering.
- In 2018, NCDMB identified another infraction in which SEEPCO illegally deployed 402 expatriates, alongside unauthorized project executions.
In response to the infractions, the Board imposed penalties and ordered the company to:
- Disengage the expatriates and provide proof of their exit.
- Follow proper expatriate quota application processes.
- Adhere to NCDMB’s rules on tendering and awarding contracts.
- Reconcile and pay outstanding remittances to the Nigerian Content Development Fund (NCDF).
- Train and employ 40 Nigerians as remediation.
However, SEEPCO allegedly ignored these directives, prompting the Board to initiate legal proceedings under Section 68 of the NOGICD Act.
“In 2020, SEEPCO sought an out-of-court settlement and committed to addressing the compliance issues and undertaking the remediation. SEEPCO completed the training of 40 Nigerians in 2022, but the employment commitment was not achieved. Additionally, SEEPCO made only partial NCDF remittances.
“SEEPCO has refused to respond and comply with other Nigerian Content requirements,” the statement added.
- Meanwhile, the Board noted that it had requested statutory submissions from SEEPCo and scheduled a performance review session for March 2025.
- The Board reiterated its stance on prioritizing Nigerian talent in the oil and gas sector and warned that firms failing to comply with local content laws would face legal consequences.
NCDMB said it is committed to the effective implementation and enforcement of the NOGICD Act in the oil and gas sector, “with a view to creating employment opportunities for Nigerians.”
It added that it would not fail to sanction companies that violate provisions of the NOGICD Act.
