Business Hilights
Tracking Nigeria's Headline Business News Online

On resolution, LADOL, Samsung feud would create over 10,000 jobs—NEPZA

The Nigeria Export Processing Zones Authority (NEPZA), says the resolution of the Korean shipbuilding giant Samsung Heavy Industries (SHI Nigeria) and Lagos Deep Offshore Logistics (LADOL) feud will create over 10,000 jobs.

Prof. Adesoji Adesugba, the Managing Director/Chief Executive Officer (CEO) of NEPZA said this while speaking with newsmen in Abuja.

Business Hilights reports that he spoke shortly after the signing of a Memorandum of Understanding (MoU) between LADOL and Samsung on a protracted dispute of the LADOL Free Trade Zone in Lagos.

The management of Global Resources Management Limited (GRML), a subsidiary of LADOL ejected SHI Nigeria from the LADOL Free Zone in Lagos.

LADOL’s allegation included that Samsung breached the condition of services for Nigerian workers and violated both customs and immigration procedures.

Adesugba, however, said that investments and jobs were lost since the relationship between SHI Nigeria and LADOL went sour in 2018.

According to him, the outcome of this MoU is that investment worth more than seven billion dollars has been unlocked for the Nigerian economy and employment of our teeming youths is also unlocked.

“You recall that more than 3, 000 Nigerians lost their jobs due to this dispute but we thank God today that now going forward we will not only employ 3, 000.

“We expect that with the kind of investments that are coming in and the kind of assets and different projects that this is going to attract more than 10, 000 direct employment.

“We are happy we have actualised Mr President’s directive that we must as a matter of national urgency ensure that this dispute is resolved,’’ Adesugba said.

He commended the Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo and the Chief of Staff to the President, for their roles in resolving the dispute.

“We are very happy that this quantum of investment is unlocked and we will continue to monitor what is happening with Samsung and LADOL to ensure that they live up to the spirit of what they have signed today,’’ Adesugba said.

The NEPZA boss said that both parties had resumed operations at the zone following negotiations.

“They have started because we have actually finished most of the negotiations for over two months now and they have been working together.

“It is the logistics that they are doing and we expect that we shall start seeing visible results within the next couple of months, not up to one year we will start seeing employment and different projects coming in.

“And they promised us that if we can resolve this, Nigeria is going to have more companies coming from South Korea to invest in the Nigerian economy.

“We are very optimistic that this is going to be a win-win situation for both parties,’’ Adesugba said.

He commended the NEPZA Alternate Dispute Resolution Centre, Nigerian Ports Authority (NPA), Nigerian Content Development and Monitoring Board (NCDMB) and other agencies for making positive interventions.

It would be recalled that SHI Nigeria was the operator of a fabrication and integration yard (SHI-MCI yard) in the zone used to integrate the Egina Floating Production Storage Offloading (FPSO) vessel.

This has sailed to the 200, 000 barrels per day Egina oilfield.

The SHI-MCI yard is a joint venture between LADOL and SHI having 70 per cent stake and LADOL 30 per cent.

The dockyard is the only one of its kind in Africa, designed to make Nigeria a hub of FPSO fabrication on the continent.