The Nigerian Content Development and Monitoring Board (NCDMB) has launched an investigation into Sterling Oil Exploration and Energy Production Company (SEEPCO) over allegations of anti-labour practices and violations of expatriate quotas.
This move follows a protest by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at SEEPCO’s headquarters in Lagos, led by National President Festus Osifo, who raised concerns about the company’s reported preference for expatriates over qualified Nigerian workers.
In a statement issued on Monday, the NCDMB reaffirmed its commitment to enforcing local content laws in Nigeria’s oil and gas sector.
The Board commended PENGASSAN for highlighting the issue, stressing its ongoing efforts to ensure compliance with Nigerian content regulations. Notably, the NCDMB has previously taken enforcement actions against SEEPCO for similar infractions.
Under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, the NCDMB has ensured that hundreds of technical positions in the oil and gas sector are reserved for Nigerians, reinforcing local expertise in the industry. Between 2020 and 2024, the NCDMB allocated 609 technical roles to Nigerians, promoting local capacity in managing complex oil operations.
The Board vowed to thoroughly investigate SEEPCO’s latest alleged violations. In past years, SEEPCO has faced penalties for breaching Nigerian content laws, including the 2017 discovery of five expatriates working without approvals, for which the company was fined and instructed to train Nigerians in marine and subsurface drilling engineering.
Similarly, in 2018, SEEPCO was found to have illegally deployed 402 expatriates, resulting in further sanctions and directives to disengage the workers, adhere to expatriate quota processes, and pay outstanding remittances to the Nigerian Content Development Fund (NCDF).
Despite these past reprimands, the NCDMB revealed that SEEPCO had failed to fully comply with its directives, including the training and employment of 40 Nigerians.
Furthermore, the company has not made full remittances to the NCDF, prompting the Board to initiate legal proceedings under Section 68 of the NOGICD Act. SEEPCO had previously sought an out-of-court settlement in 2020, promising to address compliance issues, but the Board noted that the company has yet to fulfill its commitments fully.
As part of its ongoing efforts, the NCDMB is scheduled to review SEEPCO’s performance in March 2025 and has demanded that the company submit the necessary statutory documentation.
The Board emphasized its unwavering stance on prioritizing Nigerian talent in the oil and gas sector and warned companies failing to comply with local content laws that they will face legal consequences.
The NCDMB remains committed to strengthening the enforcement of the NOGICD Act and ensuring that Nigerian workers benefit from the growing opportunities in the oil and gas industry.
