The Nigerian Content Development and Monitoring Board (NCDMB) is intervening in a dispute between Sterling Oil Exploration and Energy Production Company (SEEPCO) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over alleged anti-labour practices and expatriate quota abuses. PENGASSAN, led by its president, Mr. Festus Osifo, protested at SEEPCO’s Lagos headquarters, accusing the company of prioritizing Indian nationals for positions that qualified Nigerians could fill, thereby marginalizing local talent and violating the expatriate quota system designed to protect Nigerian jobs within the oil and gas sector. Osifo highlighted the disparity between SEEPCO’s employment practices and those of other international oil and gas companies operating in Nigeria, where Nigerians hold significant leadership positions.
The NCDMB responded by commending PENGASSAN for raising the alarm and pledged to investigate the allegations thoroughly. The board emphasized its commitment to enforcing the Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICD Act), which includes provisions for expatriate quotas, succession planning, and work permit guidelines. The NCDMB underscored its success in ensuring Nigerian representation in leadership roles within the industry and acknowledged its role as a watchdog for compliance with local content regulations. The board confirmed a history of sanctions against SEEPCO for violating the NOGICD Act, including a previous incident involving the unapproved deployment of expatriates.
The NCDMB detailed past instances of SEEPCO’s non-compliance, revealing that in 2017, the company was penalized for deploying five expatriates without the necessary approvals. SEEPCO was required to train five Nigerians in specialized fields as remediation. In 2018, a more significant violation involving 402 unapproved expatriates was discovered, along with irregularities in project awards and procurement processes. The NCDMB imposed sanctions, including the disengagement of the unauthorized expatriates, adherence to expatriate quota application processes, compliance with tendering regulations, remittance of outstanding Nigerian Content Development Fund (NCDF) contributions, and the training and employment of 40 Nigerians.
Despite these directives, SEEPCO reportedly failed to comply fully, leading the NCDMB to initiate legal proceedings. SEEPCO subsequently sought an out-of-court settlement, agreeing to address the compliance issues and undertake the required remediation in 2020. While the company completed the training of 40 Nigerians in 2022, the commitment to employ them was not fulfilled, and NCDF remittances remained incomplete. Further, SEEPCO continued to be unresponsive to other Nigerian content requirements. The NCDMB revealed that between 2017 and 2023, SEEPCO had only been granted approval for seven expatriate positions, three of which were approved in 2023. The board has requested statutory submissions from SEEPCO and scheduled a performance review for March 2025.
In response to the accusations, SEEPCO issued a statement asserting its adherence to federal laws and industry regulations, emphasizing its commitment to employee welfare, community development, and corporate governance. The company claimed to abide by the Collective Bargaining Agreement with PENGASSAN and other relevant legal frameworks. SEEPCO attributed its rapid growth within the oil and gas industry to its adherence to these principles and highlighted its investments in local content development, employee skills acquisition programs, and community initiatives. The company refuted the allegations of unfair labor practices and reiterated its dedication to fostering a supportive work environment, emphasizing its ongoing engagement with labor unions, including PENGASSAN.
The NCDMB reaffirmed its commitment to enforcing the NOGICD Act to maximize employment opportunities for Nigerians, promote local content development, and stimulate economic growth. The board stressed its willingness to sanction companies that disregard the provisions of the act and welcomed collaboration with stakeholders, including oil unions, to achieve the objectives of the legislation. The ongoing dispute between SEEPCO and PENGASSAN, mediated by the NCDMB, highlights the challenges in balancing the needs of international companies operating in Nigeria with the imperative to prioritize local content and protect the interests of Nigerian workers in the oil and gas sector. The NCDMB’s intervention and its history of sanctions against SEEPCO underline the board’s resolve to ensure compliance with local content regulations and promote the development of Nigerian expertise within the industry.
