By Ihechi Enyinnaya
The Nigerian Content Development and Monitoring Board (NCDMB) has responded to recent allegations raised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against Sterling Oil Exploration and Energy Production Company (SEEPCO), citing concerns over anti-labour practices and violations related to expatriate quotas. The protest, held at SEEPCO’s headquarters in Victoria Island, Lagos, highlighted the company’s alleged disregard for Nigerian Content regulations.
The NCDMB expressed its support for PENGASSAN’s intervention and commended the union’s President, Mr. Festus Osifo, for recognizing the growing presence of qualified Nigerian personnel in leadership and technical roles within both local and international oil and gas companies. Osifo also highlighted that Nigerian workers have been integral in operating critical offshore platforms, especially during the COVID-19 pandemic when many expatriates were forced to leave the country.
The NCDMB emphasized that these achievements were made possible through the enforcement of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, which governs expatriate quotas, succession planning, and the deployment of foreign workers. The Board also noted its success in the “Nigerianization” of 609 technical positions between 2020 and 2024, a move aimed at enhancing local content and creating more employment opportunities for Nigerians.
In response to the protest and the allegations, the NCDMB assured the public that it would conduct a thorough investigation into SEEPCO’s alleged violations of the NOGICD Act, particularly concerning its expatriate quota. The Board confirmed that SEEPCO had previously been sanctioned for similar non-compliance issues.
The NCDMB outlined a series of engagements with SEEPCO over the years. In 2017, five expatriates were deployed by SEEPCO without obtaining necessary approvals, leading to a penalty and a directive for the company to train five Nigerian employees in marine engineering and subsurface drilling engineering. In 2018, NCDMB identified 402 expatriates working without approval, alongside several projects and contracts awarded without following the required process. As a result, SEEPCO was ordered to disengage these expatriates and to provide evidence of their exit.
Despite these actions, SEEPCO failed to comply with NCDMB’s directives, prompting legal proceedings in 2020. Although SEEPCO sought an out-of-court settlement and completed the training of 40 Nigerians in 2022, it failed to fulfill its employment commitments and made only partial remittances to the Nigerian Content Development Fund (NCDF).
In 2023, SEEPCO applied for and was granted expatriate quota approval for three positions, bringing the total number of approved expatriate positions for the company between 2017 and 2023 to seven. However, the NCDMB continues to monitor the company’s compliance with Nigerian Content regulations and has scheduled a performance review for March 2025.
The NCDMB reiterated that its mandate applies only to companies operating in the oil and gas sector, and emphasized its commitment to enforcing the NOGICD Act, which aims to create more job opportunities for Nigerians, deepen local content, and strengthen the economy. The Board has vowed to continue holding non-compliant companies accountable and welcomes collaboration with stakeholders, including trade unions, to ensure the objectives of the NOGICD Act are fully realized.