… Hon. Chike Okafor says this move will consolidate the effort of the Imo State Governor, Sen. Hope Uzodimma
Reps Move to End Tax Evasion and Abuse of Due Process by Oil and Gas Companies in Imo State Following a Motion by Hon. Chike Okafor
The House of Representatives, on Wednesday 15th October 2025, following a Motion by the member representing Okigwe South Federal Constituency, Hon. Chike Okafor, PhD, commenced a process to end Tax evasion and abuse of due process by Oil and Gas Companies in Imo State.
Hon. Chike Okafor, moved a motion on the urgent need to investigate the flagrant abuse of due process and infringement of local content, disobedient to petroleum industry act, and refusal to comply with tax laws by oil and gas companies operating in Imo State.
According to Hon. Okafor, the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010 was enacted to promote the utilization of Nigerian human and material resources, and the participation of Nigerian companies in the oil and gas industry.
Also, the Petroleum Industry Act (PIA), 2021 provides a robust legal and regulatory framework for the Nigerian petroleum industry, including specific provisions for host community development, environmental management, and equitable benefit sharing.
Furthermore, the Taxes and Levies (Approved List for Collection) Act, authorizes State Governments to collect certain taxes and levies from businesses operating within their territories, which is crucial for funding state infrastructure and social services.
To drive home his argument , Hon. Okafor noted that several International and Indigenous Oil Companies (IOCs) operate significant oil and gas fields within the oil-producing communities of Imo State, notably in Ohaji/Egbema, Oguta, and other LGAs as its hosts namely:
• Seplat Energy Plc: – OML 53
• Niger Delta Petroleum Resources (NDPR): – OML 54
• Sterling Oil Exploration & Energy Production Co. Ltd. (SEEPCO
• WalterSmith Petroman Oil Limited: – OML 16
• Associate Oil & Gas Limited/Dansaki Petroleum Limited (A Consortium): Umuseti/Igwe marginal field.
• Chorus Energy Limited (Formerly Shell Portfolio):
• TotalEnergies / NNPC Joint Venture:
• Nigerian National Petroleum Corporation (NNPC) Limited
He expressed his awareness of the persistent outcry and allegations from host communities and state Government regarding:
• The failure to establish functional operational offices within their areas of operation in Imo State as mandated by Section 3(j) of the NOGICD Act, 2010, thereby denying the state valuable economic activity and employment.
• The systematic failure of these companies to prioritize the employment of qualified indigenes of Imo State, in direct violation of Sections 11, 28, and 35 of the NOGICD Act, 2010.
• The refusal to award contracts to competent Nigerian companies, especially those from the host communities, for goods and services.
• The obstruction of lawful efforts by the Imo State Government and Imo State Internal Revenue Service (IIRS) to access their premises for assessment and collection of legally approved state taxes and levies.
• The non-compliance with the Host Communities Development Trust provisions under Chapter 3 of the PIA, 2021, leading to a lack of tangible benefits and development in these communities.
Concerned that these acts of non-compliance have led to immense frustration, widespread agitations, and a palpable threat of social unrest within the host communities, who rightly feel marginalized and exploited.
He also drew the attention of the Green chambers to the fact continued neglect and infringement of these laws, if not urgently addressed, may lead to:
(i) Violent protests that could threaten national security.
(ii) The destruction of critical oil and gas infrastructure, disrupting production and harming the national economy.
(iii) A breakdown of law and order in the oil-producing regions of Imo State.
To this end, he urged and the Speaker of the House of Representatives mandated the Committee on Local Content, Committee on Corporate Social Responsibility to lead the investigation, in collaboration with the Committees on Petroleum Resources (Upstream), Petroleum Resources (Midstream), Petroleum Resources (Downstream), Finance, and Justice to:
- Conduct a comprehensive public hearing to investigate the specific allegations of violations of the NOGICD Act 2010, PIA 2021, and Taxes and Levies Act by all oil and gas companies operating in Imo State.
- Urge the oil and gas companies operating in Imo State to, as a matter of extreme urgency:
(a) Immediately comply with all provisions of the NOGICD Act 2010 regarding indigenous employment, contract awards, and establishment of operational offices.
(b) Fully comply with the Host Communities Development Trust requirements under the PIA 2021.
(c) Grant unfettered access to officials of the Imo State Internal Revenue Service for the performance of their lawful duties.
(d) Engage in genuine dialogue with host community leaders to address grievances and ensure peaceful coexistence. - Invite for questioning the Chief Executives of the seven (8 ) concerned oil companies, the Chief Executive of the Nigerian Content Development and Monitoring Board (NCDMB), the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Chairman of the Imo State Internal Revenue Service.
- Investigate the status of implementation of the Host Communities Development Trusts in Imo State, and,
- Report back to the House within Four (4) legislative weeks.
Addressing newsmen, after the legislative business of the day, Hon. Chike Okafor stated that this move will consolidate the effort of the Imo State Governor, Sen. Hope Uzodimma in revenue generation, job creation, security and development.