Wednesday, August 20, 2025
23 C
Lagos

Actions Taken by NCDMB Towards Addressing Sterling Oil’s Non-Compliance Issues

The Nigerian Content Development and Monitoring Board (NCDMB) has noted the comments made by the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr. Festus Osifo, during the union’s recent protest at the headquarters of Sterling Oil Exploration and Energy Production Company (SEEPCO), at Victoria Island, Lagos, over alleged anti-labour practices and expatriate abuses by the company.

NCDMB commends the PENGASSAN leader for acknowledging that qualified Nigerian personnel are occupying top leadership and technical positions in most international and indigenous operating oil and gas companies, and are performing creditably in those roles.

He noted rightly that Nigerians are executing complex functions in the floating production and storage and offloading (FPSO) platforms like Bonga, Agbami, USAN, AKPO, Egina, etc. Indeed, Nigerian oil and gas workers performed almost all operations in the oil and gas industry during the COVID-19 pandemic and kept the industry afloat, after most expatriates returned to their home countries.

These feats were accomplished through NCDMB’s strategic implementation and enforcement of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, particularly the Expatriate Quota, Succession Plan and Deployment of Expatriates Guidelines and Expatriate Work Temporary Work Permit Guidelines. The successes were also enabled by the several Nigerian Content capacity building interventions that prepared and placed qualified Nigerians in key positions in the oil and gas industry. Through enforcement and compliance oversight, the Board ensured that 609 technical positions were nigerianised for the period 2020-2024

We are delighted that PENGASSAN served as a whistle blower over the alleged expatriate quota abuse by the management of Sterling Oil, and we assure the union and the general public that we would investigate the matter exhaustively and take necessary actions.

We can confirm that NCDMB had sanctioned SEEPCO a few years ago for gross violations of the NOGICD Act. Recently, we have been engaging the company for the same reasons. Our regulatory engagements with the firm are outlined below:

In 2017, the NCDMB identified five expatriates deployed by SEEPCO without obtaining the relevant NCDMB approvals. As a result, NCDMB penalised the company for this non-compliant deployment of expatriates. To remediate this, SEEPCO trained five Nigerians in Marine Engineering and Subsurface Drilling Engineering for nine months.

In 2018, NCDMB identified 402 expatriates deployed by SEEPCO without approval. Additionally, NCDMB discovered projects, contracts, and purchase orders from multiple projects that were awarded and executed without appropriate approvals. NCDMB penalised SEEPCO for these infractions and directed SEEPCO and its affiliates to take the following actions:

  • Disengage the 402 expatriates and provide evidence of their disengagement and exit to the Board.
  • Commence and comply with the NCDMB Expatriate Quota application process.
  • Comply with the Board’s requirements for tendering and awarding projects, contracts, and purchase orders.
  • Complete the Nigerian Content Development Fund (NCDF) reconciliation exercise and pay outstanding remittances.
  • Submit up-to-date statutory reports on Nigerian Content and comply with the review process.
  • Train and employ 40 Nigerians as part of the remediation/penalty.

 

Regrettably, SEEPCO ignored those directives until the Board commenced legal proceedings against the firm, in line with 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.

In 2023, SEEPCO obtained Expatriate Quota approval from the Board for three positions.

From our records SEEPCO has been granted only seven expatiate positions between 2017 to 2023.

The Board has requested for statutory submissions from SEEPCo and scheduled performance review session for March 2025.

 

Conclusion

NCDMB Expatriate Quota approvals and compliance and enforcement is applicable to only companies with investments or executing projects in the oil and gas industry. Non-oil and gas Expatriate Quota utilization does not come to the Board, but rather directly to the Ministry of Interior.

NCDMB 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, deepening Nigerian Content and boosting the economy.

The Board will not fail to sanction firms that flagrantly flout provisions of the NOGICD Act. The Board welcomes collaboration of stakeholders, including oil unions towards achieving the intendments of the NOGICD Act.

 

spot_img
spot_img

Hot this week

NAICOM, SEC Initiates Partnership to Drive Insurance Sector Reforms

The Commissioner for Insurance, Mr. Olusegun Ayo Omosehin paid...

How Power Outages Threaten Nigeria’s Digital Economy Dream

By Elvis Eromosele Recently, I found myself inside a multi-storied...

Tinubu Commissions WAGL’s 40,000 CBM LPG Vessel in South Korea

Dignitaries at the naming ceremony of the 40,000 cubic...

NCC to Partner ATCON on National Digital Infrastructure Development

KEYNOTE ADDRESS BY DR. AMINU MAIDA, EXECUTIVE VICE-CHAIRMAN OF...

Tinubu Approves N16.7bn for Reconstruction of Mokwa Bridge in Niger State

President Bola Tinubu has approved the release of N16.7...

Topics

NCDMB Unveils Nigerian Content Fund Certificate, Empowers 130 firms with $400m NCI Fund

The Nigerian Content Development and Monitoring Board has introduced...

Africa Bancassurance MasterClass 2019 Holds April 16 in Lagos

The Africa Bancassurance Academy would like to notify the...

NSE Downgrades E-Tranzact from Medium to Low Stock

The Nigerian Stock Exchange (The NSE ), hereby announces...

Global Air Freight Growth Slows in May

The International Air Transport Association (IATA) released global air...

NAICOM, Estate Valuers Seek Collaboration on Insurance of Public Buildings

The President and Chairman of Council of the Nigerian...

Sterling Bank: N133bn Earning Caps Impressive 2017 Performance

Sterling Bank Plc released its FY-2017 results, which...

N4bn Oil Theft: BudgIT Tasks Regulators in Oil Sector

Nigeria Extractive Industries Transparency Initiative (NEITI) - a body...

Zest: Revolutionising Payment Solutions for African Businesses

African enterprises are rapidly discovering that fragmented payment systems...
spot_img

Related Articles

Popular Categories

spot_imgspot_img