Minister, NCDMB to investigate Sterling Oil over expatriate quota violations, anti-labour practices
…Minister sets up committee to address allegations
By Seun Ibiyemi and Matthew Denis
The Nigerian Content Development and Monitoring Board (NCDMB) has announced that it will launch an investigation into Sterling Oil Exploration and Energy Production Company (SEEPCO) over allegations of expatriate quota violations and unfair labour practices.
This was disclosed in a statement issued by the board on Monday, reaffirming its dedication to upholding local content laws within the oil and gas industry.
The NCDMB’s statement follows a protest staged by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at SEEPCO’s headquarters in Lagos.
During the demonstration, the National President of PENGASSAN, Festus Osifo, voiced concerns over SEEPCO’s alleged preference for expatriates over skilled Nigerian professionals.
The Board acknowledged the union’s efforts in bringing the matter to public awareness and stressed that it had previously taken enforcement measures against SEEPCO.
Under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, the NCDMB stated that it had ensured that 609 technical positions were indigenised between 2020 and 2024, strengthening Nigeria’s capability to manage complex oil and gas operations.
The Board reassured PENGASSAN and the public that it would conduct a comprehensive investigation into the latest allegations against SEEPCO.
The NCDMB disclosed that SEEPCO had a history of non-compliance with Nigerian content laws and had been previously penalised.
In 2017, the company was sanctioned after five expatriates were found working without the necessary approvals. As part of its corrective measures, SEEPCO was directed to train five Nigerians in Marine Engineering and Subsurface Drilling Engineering.
In 2018, another violation was detected when SEEPCO illegally deployed 402 expatriates and executed unauthorised projects.
To address these breaches, the Board imposed sanctions and instructed the company to: Disengage the unauthorised expatriates and provide evidence of their departure; Follow proper expatriate quota application processes in line with regulations; Comply with NCDMB’s guidelines on contract tendering and awards; Settle outstanding remittances to the Nigerian Content Development Fund (NCDF); Train and employ 40 Nigerians as part of remediation efforts.
However, SEEPCO allegedly failed to comply with these directives, prompting the Board to initiate legal proceedings under Section 68 of the NOGICD Act.
In 2020, SEEPCO sought an out-of-court settlement and pledged to rectify its compliance issues. The company completed the training of 40 Nigerians in 2022, but failed to fulfil its employment commitments. Moreover, it only made partial NCDF remittances.
The statement further revealed that SEEPCO has refused to address other Nigerian Content requirements despite repeated warnings.
As part of its regulatory oversight, the Board has requested SEEPCO’s statutory submissions and scheduled a performance review session for March 2025.
The NCDMB reiterated its unwavering commitment to prioritising Nigerian professionals within the oil and gas sector, warning that companies failing to adhere to local content laws would face strict legal repercussions.
Meanwhile, the Minister of Interior, Hon. Olubunmi Tunji-Ojo, has formed a special committee to examine the administration of expatriate quotas in the oil sector.
This was disclosed in a statement signed by Dr Magdalene Ajani, Permanent Secretary, on Monday.
The statement read, “The Ministry of Interior is aware of recent allegations broadcast on national television regarding the administration of expatriate quotas in the oil sector. These allegations are being taken seriously, and proactive measures have been initiated to address the concerns.”
It also highlighted that the Ministry had previously announced a review of the approving authority for Expatriate Quota (EQ) and Citizenship applications in a circular dated 12 February 2025.
Under the new framework, all approvals are now under the direct supervision of the Minister and the Permanent Secretary, replacing the previous system where approvals were handled by Directors.
“This review aligns with the Ministry’s commitment to improving transparency, accountability, and operational efficiency in the administration of EQ and Citizenship applications. It also aims to eliminate potential abuse and irregularities within the system,” the statement added.
It would be recalled that on 4 March 2025, the Minister, alongside senior officials of the Ministry and the Comptroller General of the Nigeria Immigration Service, held a strategic meeting with the Nigerian Employers’ Consultative Association (NECA) in Lagos.
The discussions focused on fostering a business-friendly environment while safeguarding the interests of Nigerians and Nigeria.
Following the meeting, a review committee was established, comprising representatives from: the Ministry of Interior; the Nigeria Immigration Service; the Organised Private Sector under NECA.
According to the Minister, the committee’s mandate is to evaluate the existing expatriate quota policy and recommend improvements where necessary.
Reaffirming the Ministry’s dedication to fairness, Tunji-Ojo assured the public that the administration of expatriate quotas would remain transparent and in the best interests of Nigerians.
He further pledged to work closely with stakeholders to refine policies and procedures that will contribute to Nigeria’s economic growth and development.
