Commission probes alleged non-compliance with Petroleum Industry Act as SEEPCO misses investigative hearing on Host Community Development Trust obligations.
By A1NEWS International
ABUJA, Nigeria — August 6, 2026
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has intensified its oversight of Nigeria’s oil and gas sector by launching a high-level investigation into the operations of Sterling Oil Exploration and Energy Production Company (SEEPCO), warning that operators must fully account for statutory contributions meant for oil-producing host communities.
The development follows SEEPCO’s failure to honour repeated invitations to appear before an investigative hearing examining its compliance with the Host Community Development Trust (HCDT) provisions of the Petroleum Industry Act (PIA) 2021.
Despite the company’s absence, the Commission granted SEEPCO a final one-week window to appear before its investigative committee and respond to allegations concerning its obligations to host communities in Anambra State.
The hearing forms part of RMAFC’s broader efforts to strengthen transparency, accountability and effective implementation of the Petroleum Industry Act across Nigeria’s petroleum industry.
Commission Tightens Oversight of Oil Operators
Speaking during Thursday’s investigative hearing in Abuja, RMAFC Chairman Dr. Mohammed Shehu reaffirmed the Commission’s determination to protect the rights and interests of host communities through strict monitoring of operators’ statutory responsibilities.
He described the investigation as a matter of national importance, emphasizing that the Commission would not relent in ensuring that revenues and community development funds provided under the law reach their intended beneficiaries.
According to Shehu, safeguarding host communities is central to promoting sustainable development, reducing conflict in oil-producing areas and strengthening public confidence in Nigeria’s extractive sector.
“The Commission remains committed to transparency, accountability and protection of host communities’ interests,” he declared.
He also commended members of the Commission’s Investment Monitoring Committee for their dedication despite operational challenges encountered during the investigation.
According to him, the exercise falls squarely within RMAFC’s constitutional responsibility of monitoring revenue-related matters in Nigeria’s extractive industries.
SEEPCO’s Absence Raises Fresh Questions
One of the most significant developments at the hearing was SEEPCO’s failure to attend despite several formal invitations from the committee.
The Commission noted that meaningful engagement with the company remains essential to resolving outstanding issues surrounding statutory contributions, community development projects and corporate social responsibility commitments.
Committee members expressed concern that the company’s continued absence could delay efforts to verify compliance with the Petroleum Industry Act.
Nevertheless, the committee extended a one-week grace period, warning that SEEPCO must appear and address all issues raised during the investigation.
Committee Seeks Verification of Host Community Funds
Chairman of the investigative committee, Dr. Ekene Enefe, explained that the inquiry focuses on determining whether mandatory Host Community Development Trust contributions required under the Petroleum Industry Act have been properly remitted and whether such funds are reaching the affected communities.
According to him, the committee was established specifically to enforce compliance with the law and ensure that oil-producing communities receive the benefits guaranteed under the Act.
“The committee’s investigation is aimed at determining whether statutory HCDT contributions are fully remitted and reaching affected communities.
“The committee is established to enforce compliance and ensure intended benefits reach the communities concerned,” Enefe stated.
He stressed that every operator in Nigeria’s petroleum industry must comply fully with statutory obligations to both host communities and the Federation.
NUPRC Assures Cooperation
Representing the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Director of Host Communities Mrs. Ufondu Ejiro informed the committee that the regulator operates strictly within the provisions of the Petroleum Industry Act.
She explained that administration of Host Community Development Trusts is governed entirely by the Act and its accompanying regulations.
Ejiro assured the committee that SEEPCO would honour the latest invitation and participate in the ongoing investigation.
Her assurance was viewed as an important step towards resolving the issues raised before the committee.
Anambra Government, Host Communities Present Complaints
The Government of Anambra State also participated in the hearing.
Commissioner for Petroleum and Mineral Resources, Prof. Charles Ofoegbu, highlighted several concerns affecting host communities where SEEPCO operates.
He emphasized the importance of continuous dialogue among regulators, operators and affected communities to resolve outstanding issues and promote sustainable development.
Representing the affected communities, legal practitioner Mr. Peter Chukwudi urged the Commission to ensure strict enforcement of both the Petroleum Industry Act and RMAFC’s constitutional mandate.
He maintained that host communities deserve full compliance from operators and should not be deprived of statutory benefits intended to improve infrastructure, healthcare, education, environmental protection and economic development.
Forensic Review of HCDT Contributions Begins
As part of the investigation, the committee also received a preliminary forensic assessment from its consultant regarding SEEPCO’s statutory Host Community Development Trust contributions.
Although details of the assessment were not publicly disclosed, the forensic review is expected to help determine whether all mandatory payments have been made and whether the funds have been appropriately administered.
The findings may shape future regulatory actions and strengthen enforcement of the Petroleum Industry Act.
Growing Focus on Petroleum Industry Act Compliance
The Petroleum Industry Act introduced the Host Community Development Trust framework to ensure that communities directly affected by oil and gas operations receive tangible benefits from petroleum activities.
Under the law, oil and gas companies are required to make annual contributions to Host Community Development Trusts to finance development projects, reduce conflicts and promote peaceful coexistence between operators and host communities.
Regulators have increasingly intensified oversight to ensure that these statutory obligations are fulfilled across Nigeria’s upstream petroleum sector.
With SEEPCO now under intensified scrutiny, the outcome of the RMAFC investigation could become an important test of Nigeria’s commitment to enforcing the Petroleum Industry Act and strengthening accountability within the oil and gas industry.
The Commission’s decision to grant the company one final opportunity to appear signals both procedural fairness and regulatory resolve. Stakeholders will be closely watching whether the operator complies with the directive and whether the investigation leads to stronger enforcement of host community rights and statutory obligations nationwide.
Leave a Reply