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.

 

Hot this week

NGX Group Chair, Umaru Kwairanga, Earns Fellowship of Capital Market Academics of Nigeria

ACCEPTANCE SPEECH AT THE CONFERMENT OF FELLOWSHIP OF CAPITAL...

NHEA 2026 Honours Nigeria’s Finest as FG Reaffirms Commitment to Healthcare Transformation

NHEA 2026: (L-R) Dr. Wale Alabi, NHEA Project Director;...

NAICOM, NCRIB, NCC, NLNG, Guinea, Stanbic IBTC Holding, Leadway, Universal, Others Drum Support for SUPERNEWS Confab July 7

Bluechip firms, government agencies and reputable organisations from various...

NCC Chief, Aminu Maida, is Special Guest of Honour at Business Journal Fintech & Financial Inclusion Roundtable 2026

Dr. Aminu Maida, Executive Vice-Chairman/CEO, Nigerian Communications Commission (NCC)...

Topics

Global Pension Assets Rose to $35Tr in 2020 Despite COVID-19

Aisha Dahir-Umar Director-General National Pension Commission (PenCom) Preliminary data for 2020 shows...

Dev Bank of Nigeria to Support MSMEs with N396.5bn

The Federal Ministry of Finance has confirmed the completion...

Broadband Commission: Demand-creation Programs to Stimulate ICT Adoption

The Broadband Commission for Sustainable Development's Working Group on...

Osinbajo to Open 2018 National Insurance Conference July 9

Professor Yemi Osinbajo, Vice-President, Federal Republic of Nigeria is...

PenCom: Commitment to Ethical Conduct, Business Practices

One of the major achievements of the Pension Reform...

What’s Behind the Xenophobic Attacks in South Africa?

South African troops deployed as part of a new government effort to stop deadly anti-immigrant violence. Their first target: the Johannesburg suburb of Jeppestown, where xenophobic violence broke out. South African Police raided a Jeppestown hostel while troops secured the perimeter. Earlier, Defense Minister Nosiviwe Mapisa-Nqakula announced the plan to deploy an undisclosed number of troops to areas where police are spread too thin while trying to curb deadly attacks against immigrants.

Brand Africa to Unveil Africa’s Top 100 Brands on Oct 22

Brand Africa is to release its highly anticipated 4th Brand Africa 100: Africa’s Best Brands rankings of the Top 100 Most Admired and Most Valuable brands in Africa at a Gala event at Sandton Convention Center on 22 October 2015. The rankings, first launched in 2011 at the 2nd Brand Africa FORUM, have been held in Johannesburg, South Africa in 2011 in partnership with Brand South Africa, in Nairobi, Kenya in 2014 in partnership with the Kenya Securities Exchange and in New York in 2013 partnership with African Business on the sidelines of the UN General Assembly.