FG Set to Take Action Against Sterling Oil for Alleged Abuse of Expatriate Quota
- The federal government is finally stepping into the prolonged labour crisis at Sterling Oil
- PENGASSAN members had staged a protest at the company headquarters, over discrimination against Nigerians and other anti-labour practices
- As the issue continues to drag, the federal government is taking legal action through the NCDMB to put an end to SEEPCo's excesses
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The federal government has announced plans to take action against Sterling Oil Exploration and Energy Production Company’s (SEEPCo) alleged anti-labour practices and abuse of the expatriate quota system.
The Nigerian Content Development and Monitoring Board (NCDMB) vowed that action will be taken against the company for repeatedly violating the local content directives.
Recall that the members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) staged a protest last week at the company's head office in Victoria Island, Lagos.
Source: Getty Images
Led by the PENGASSAN President, Festus Osifor, they raised issues of anti-labour practices in the firm and abuse of the expatriate quota system.
Mr. Osifo observed that the company was discriminating against Nigerians, and giving the jobs meant for Nigerians to Indian nationals, even when there were qualified Nigerians.
Osifo explained that other international oil and gas companies had Nigerians occupying top managerial, executive and technical positions, but the same could not be said about Nigerians in Sterling Oil.
FG reacts through NCDMB
In the statement from NCDMB, the board noted that the number of Nigerians occupying key managerial and technical positions in other IOCs could be traced to the enforcement of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010.
This particularly affects the Expatriate Quota, Succession Plan, Deployment of Expatriates Guidelines, and Expatriate Work Temporary Work Permit Guidelines.
The board commended PENGASSAN for playing the role of whistle-blower on expatriate quota abuse in Sterling Oil, promising to investigate and take action immediately, the PUNCH reports.
The board went further to reveal that Sterling Oil had been sanctioned some years ago for violating the NOGICD Act, and there are also ongoing engagements over a repeat of the same issues.
According to NCDMB, the company employed five expatriates in 2017 without securing approval from the board. Again in 2018, 402 expatriates were discovered in SEEPCO’s employ that had not been approved by NCDMB.
Other infractions included the awarding of projects, purchase orders and contacts without securing NCDMB approval, and the board sanctioned SEEPCo accordingly.
Sterling Oil refuses to comply with FG sanctions
However, NCDMB discovered that the company had failed to comply with its penalties which included disengaging the 402 expatriates and providing evidence of their exit.
Fresh legal action has thus been taken against SEEPCO in line with the provisions of Section 68 of the NOGICD Act.
SEEPCO has appealed for an out-of-court settlement and tried to demonstrate commitment to resolving the issues by training 40 Nigerians in 2022. However, there is still no evidence to confirm that the employment commitment has been met.
There are also other infractions like the partial NCDF remittances, and a refusal to comply with other Nigerian content requirements.
NCDMB disclosed that it has requested statutory submissions from SEEPCo and scheduled a performance review session for March 2025, and reassured that it would ensure the company complies to create job opportunities for Nigerians and boost the local economy.
Sterling Oil insists it is law-compliant
Source: Getty Images
In its statement, Sterling Oil insisted that it abides by the Collective Bargaining Agreement between PENGASSAN, the Industrial Act, and the laws of the Federal Republic of Nigeria to its letter and spirit, and remains a responsible corporate citizen.
The company also reiterated its intent to create jobs for Nigerians and ensure energy security through its numerous trainings and initiatives.
FG recovers outstanding debt from two oil companies
In related news, the federal government has recovered outstanding revenues of $19.241.109.34 from two oil companies.
The companies include Chorus Energy, which paid a debt of $847,632 and Seplat which paid $18.39 million.
The debt recoveries were made in March 2025 and remitted to the Federation Account.
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Source: Legit.ng
