The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has stepped in to mediate a growing dispute between Sterling Oil Exploration & Energy Production Company (SEEPCO) and host communities in Ogbaru Local Government Area of Anambra State, following complaints that the oil firm was not meeting its corporate social responsibility obligations.
At an engagement convened by the RMAFC’s Investment Monitoring Committee on Thursday in Abuja, the commission’s officials pressed SEEPCO to provide answers on several critical issues, particularly as they relate to compliance with the Petroleum Industry Act (PIA) and broader host community expectations.
The Chairman of the Investment Monitoring Committee, Bello Enefe, who presided over the meeting, said the intervention was necessitated by unresolved issues affecting the company’s relationship with its host communities. He noted that fostering peace and accountability in oil-producing regions was essential for stable and predictable revenue generation into the Federation Account.
“There are so many outstanding issues that need to be thrashed out between SEEPCO and the host communities. When operations happen in a stable and inclusive environment, the country can expect better and safer revenue outcomes,” he stated, according to a press statement that was issued by the commission on Thursday.
Enefe questioned the company’s representative, head of Business Development, Rajender Bhangara, on whether SEEPCO had established a Host Community Development Trust, as required under the PIA. He also sought details about the company’s contributions to the trust fund, the application of those funds toward infrastructure and environmental remediation, and the conduct of needs assessments in affected communities.
He further demanded explanations regarding gas flaring in the Ogbaru axis, evidence of flare penalty payments, compensation to the communities, and the metering systems used to quantify flared volumes. Another major concern raised was the absence of a local flow station or farm tank in Anambra State, despite crude evacuation to Delta State.
The committee also sought clarity on SEEPCO’s gas-to-crude ratio, the status of its MoUs with the host communities, scholarships offered, employment of local skilled workers, and visible infrastructure development in the area.
Contributing to the deliberations, commissioner representing Delta State at RMAFC and a member of the Investment Committee, Hon. Matthew Aruviere Egharhevwa, reinforced the need for SEEPCO to provide a comprehensive database detailing the extent of gas exploration and associated investments in human capital and infrastructure.
Representatives of the host communities welcomed the Commission’s intervention. Esumai Patrick Chukwudi of Ogwu Ikpele community called for fairness and tangible development, stating: “Our people need to see real development—water, health, access roads, jobs—not just promises.”
Another representative, Hon. Vitalis Ekweanua from Ogwu Aniocha, said the communities approached the Commission because of their belief in dialogue and the pursuit of a mutually beneficial relationship with the company. “We are not against operations; we are partners in progress. But host communities must see benefits where resources are taken,” he said.
Responding to the concerns, Bhangara thanked RMAFC for creating the platform for engagement and acknowledged the issues raised. He said SEEPCO’s operations in Oil Mining Lease (OML) 143 were linked to infrastructure in Delta State, and that all oil and gas production volumes were tracked through metering and evacuation systems.
“We value this dialogue and the concerns raised. We have taken detailed notes and will return with our technical and operations teams to respond comprehensively,” he assured.
Bhangara also pledged that the company would make available relevant records, including environmental compliance data and information on gas flaring.
At the end of the session, all parties agreed to reconvene with their full technical and community relations teams to continue the discussions under RMAFC’s facilitation, with a shared objective of resolving the issues amicably and fostering improved relations between SEEPCO and the host communities.
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