Thursday, January 27, 2022
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Amy Jadesinmi, LADOL’s MD

Lagos Deep Offshore Logistics’ (LADOL) management has denied claims that its hostile policies at the Lagos Free Zone were frustrating investors doing business in the area. Amy Jadesinmi, LADOL’s managing director, disclosed that reports that the operator introduced charges alien to the contract in the free zone thereby making it unattractive to investors were untrue.

“All charges are mandated by the federal government’s policy which is subsequently issued within a transparent frame work, no company operating in the LADOL free zone has been charged with charges not mandated by the government.”

According to media reports, LADOL had allegedly imposed a one percent charge on the $3.3 billion Egina Floating Production Storage Offloading (FPSO) by Samsung Heavy Industries which the company claims is not in the original contract documents. LADOL is the Lagos free-zone operator and logistics provider for Egina while Samsung handles the fabrication and integration.

Ms Jadesinmi said it was wrong to calculate the value of the one per cent management fee in the contract when the project had not yet left the free zone. “This is not a unilateral action by us, and to say otherwise is completely false and highly mischievous since we have been transparent at all times. The enterprises operating within the LADOL free zone and the related parties are aware of the charges and the rules and regulations in detail. The charges are known and required to maintain the zones and the free zone scheme. There is nothing that was not known at the start of the project, within the approved tariff, you have what is called the one per cent management fee as the statutory charge. The one percent management fee is one percent of the cost of the product when it leaves the free zone. Obviously you can’t calculate that till the end of the project so what is known is that there will be that calculation and that management fee is clearly stated on the tariff schedule and it’s not unique to this project and is not unique to Samsung.” she said.

Ms Jadesinmi also said parties involved in the contract had been in “close discussions” over the management fee issue. “The management fee was known, government had communicated to both Samsung and Total that the management fee needs to be paid and this is known and is being discussed and there is no inkling of truth to the idea that this was done without any of the stakeholders knowing. The whole process has been done in close consultation with all the stakeholders and discussions are still ongoing with government. No matter the pressure put on us, we are not going to allow government revenue to be lost on one hand. And on the other hand, as managers of the free zone we want it to be attractive so we would do everything we can to make sure that if you come to the free zone, whether you are a foreign or local company, you have ease of doing business because that is important. We have been investing in this since 2001 so it is very important to us that people find it a very attractive environment to do business so we have the dual role of making it an attractive place and also ensure that people follow the rules.”


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