FG restores LADOL’s 25-year land lease, resolves dispute with NPA
|The Federal Government has intervened in the dispute between the Nigerian Ports Authority (NPA) and LADOL Free Zone, and has fully restored the 25 years land lease agreement it has with LADOL. |
A statement signed by Ladi Jadesimi, chairman of LADOL, published in national dailies, and sighted by BusinessDay, stated that all stakeholders were advised to comply with the Federal Government’s final directive, which is geared towards resolving the dispute, restoring investor confidence to the industry and bringing NPA’s actions in conformity with extant laws and Federal Government’s policy on Local Content.
Jadesimi stated that LADOL received notification that the presidential approval issued in 2018 granting Global Resource Management Limited a 25-year lease covering the entire area of the Free Zone, is valid and subsisting.
“The LADOL Free Zone is whole and intact, and all enterprises, visitors, stakeholders and others in the Zone should adhere to the rules and regulations of the Zone.
“This decision shows due recognition and understanding for the spirit in which LADOL Group’s shareholders, both private and public, have been investing in developing the Zone out of a disused swampy area since 2004,” he said.
According to him, the timely intervention has saved jobs, protected huge private and public investments and highlighted a deep commitment to the local content policy.
“LADOL remains committed to helping to make Nigeria the industrial hub for West Africa. Our shareholders remain undeterred in their long-term commitment to making investments that will turn the Zone into a Sustainable Industrial Special Economic Zone which will be a blueprint for sustainable industrialisation of Africa,” he assured.
Jadesimi, however, stated that LADOL remained a law abiding corporate citizen and was looking forward to continuing its strategic partnerships with the Nigerian Content Development and Monitoring Board, the Nigerian Ports Authority, the Nigeria Export Processing Zones Authority, all the agencies in the Zone and its stakeholders.
Stating that the investment continues today, in line with the policies of the Federal Government and in support of the economy of Nigeria, he thanked the employees, stakeholders, and customers for their loyalty, patience and support, and for keeping faith with them throughout this period.
Recall that the NPA revoked the lease of the land at Tarkwa Bay, near Light House Beach in Lagos via a letter dated November 14, 2019 and addressed to the managing director of Messrs Global Resources Management Limited (GRML), the parent company of LADOL.
The NPA letter, signed by Yusuf Ahmed, general manager in charge of Land and Asset Administration, alleged that LADOL executed a sublease dated September 13, 2013 with Messrs SHI-MCI Fze (representing Samsung Heavy Industries Nigeria) without the required approval or recourse to the Lessor.
Based on this allegation, NPA terminated its lease agreement with LADOL before going ahead to lease the 11.24 hectares to Samsung Heavy Industries Nigeria Limited (SHIN) in a fresh agreement of $219,230,700.00 per year to save SHIN’s fabrication and integration yard for which it borrowed $270 million to build.
Having allocated 11.24 hectares for SHIN, NPA also granted a fresh lease under new terms to LADOL for 5.7574 hectares of developed land and 69,2874 hectares of undeveloped land for five years with effect from November 14, 2019.