The Nigerian Content Development and Monitoring Board (NCDMB) has initiated an investigation into Sterling Oil Exploration and Energy Production Company (SEEPCO) over alleged violations of expatriate quota regulations and anti-labor practices. The probe follows a recent protest by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at SEEPCO’s headquarters in Lagos, with the union accusing the company of prioritizing expatriates over qualified Nigerian workers.
In a statement issued on Monday, the NCDMB reiterated its commitment to enforcing local content laws in Nigeria’s oil and gas sector under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. According to the Board, it has so far ensured that 609 technical positions were localized between 2020 and 2024, underscoring its determination to enhance Nigeria’s capacity to manage complex oil and gas operations.
The investigation into SEEPCO is not the first. The company has previously faced sanctions for breaching local content requirements. In 2017, the NCDMB discovered that five expatriates were working for the company without necessary approvals, prompting the Board to direct SEEPCO to train five Nigerians in Marine Engineering and Subsurface Drilling Engineering as remediation.
In 2018, SEEPCO was once again found guilty of violating expatriate quota regulations, this time involving the illegal deployment of 402 expatriates and unauthorized project executions. The NCDMB responded by imposing a series of sanctions, including the disengagement of the unauthorized expatriates, adherence to proper expatriate quota application processes, compliance with tendering and contract award rules, and the full remittance of outstanding payments to the Nigerian Content Development Fund (NCDF). The Board also ordered SEEPCO to train and employ 40 Nigerians as part of the remediation process.
Although SEEPCO partially met these conditions by completing the training of the 40 Nigerians in 2022, it allegedly failed to honor its commitment to employing them. Additionally, the company made only partial remittances to the NCDF, further straining its relationship with the regulatory body.
When attempts to settle the matter out of court in 2020 failed to achieve full compliance, the NCDMB initiated legal proceedings under Section 68 of the NOGICD Act. The Board noted that it had requested statutory submissions from SEEPCO and scheduled a performance review session for March 2025 to assess the company’s compliance status.
Reaffirming its commitment to enforcing local content requirements, the NCDMB warned that companies found violating the NOGICD Act would face legal consequences. “We remain dedicated to the effective enforcement of the NOGICD Act to create employment opportunities for Nigerians,” the statement read.
The Board’s probe into SEEPCO reflects its broader mandate of ensuring that companies operating in Nigeria’s oil and gas sector adhere to local content regulations aimed at prioritizing Nigerian talent and promoting economic growth.
