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

Top10 Magazine Names Umaru Kwairanga as Man of the Year 2026

Alhaji (Dr) Umaru Kwairanga, Group Chairman, Nigerian Exchange Group...

CBN Grants JPMorgan Approval-in-Principle to Establish Merchant Bank in Nigeria

The Central Bank of Nigeria (CBN) has granted Approval-in-Principle...

Cardoso Engages Business Leaders on Strengthening Nigeria–China Financial Corridor

The Central Bank of Nigeria (CBN) convened a high-level...

UBA Commences Contempt Proceedings Against WEMPCO Directors over Alleged Disobedience of Court Order

Mr. Lewis Tung and his brother, Robert Tung The Federal...

$242m Petroleum Products Diversion Claim: UBA Secures Court Order Against Vitol, Four Others

A Lagos State High Court has granted interim preservative...

Topics

Universal Insurance Paid N1.2bn Claims in 5 Years

Mr. Ben Ujoatuonu Managing Director/CEO Universal Insurance Plc Universal Insurance Plc paid...

Bullish Performance Sustained on Bargain Hunting… ASI Up 53bps

The domestic equities market advanced 0.5% in yesterday’s trading...

NNPC Retail Debunks ‘Lubricants-for-Petrol’ Claims

The attention of NNPC Retail Limited has been drawn...

Fitness Walk Will Drive Insurance Awareness, Penetration-NEM Insurance GMD

Mr. Tope Smart, Group Managing Director/CEO of NEM Insurance...

NIPR, P+ Measurement Partner on Media Monitoring

Clockwise: General Secretary, Lagos State Chapter, Nigerian Institute of...

Xend Finance Opens Transactions in Ghana Cedis, Kenyan Shilling on Mobile App

The first international Global Crypto bank, Xend Finance, just...

NAICOM Commends Senate on Passage of National Insurance Regulatory Commission Bill

The National Insurance Commission (NAICOM) extends its profound appreciation...

Naira Redesign: Ecobank Offers Customers 8% Interest on Deposit of Old Notes

Ecobank Nigeria has again called on its customers to...