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Again, LADOL sacks another foreign investor

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By Ediri Ejoh

There are indications that Lagos Deep Offshore Logistics (LADOL) provider the deep offshore logistics provider has sacked Africoat Nigeria Limited from the zone. This is barely two months after LADOL was reported to have terminated the operating licence of Samsung Heavy Industries Nigeria (SHIN) Limited.

Vanguard gathered that this latest development, which will also scare investors eyeing Nigeria’s operating environment, has also sent more Nigerians to the labour market.
Africoat was conceived to take advantage of the investment opportunities left in the pipe-coating market in Nigeria when Bredero Shaw decided to leave West Africa.

The Nigerian and expatriate personnel of Africoat is made up entirely of ex-employees of Bredero Shaw with extensive technical expertise in worldwide pipe-coating operations.

Africoat purchased a complete corrosion and concrete weight coating plants from Korindo in Indonesia in 2012, packaged for freight and shipped to Nigeria by charter vessel directly to LADOL, where it established a world-class warehouse for pipe-coating operations.

However, investigation has shown that Africoat has received a final notice from LADOL for the removal of its equipment/properties from the free zone after it had earlier terminated the Services Agreement it signed with Africoat.

It was gathered that because the company’s operating licence was not renewed and its service agreement terminated, the company has lost opportunities of getting new businesses.

The final notice dated November 21, 2018 and addressed to the Managing Director of Africoat Nigeria Limited, Mr. Butch Ford, was signed by Mr. Anthony Onyeamama, representing Detailed Commercial Solicitors, which acts on behalf of LADOL.

Part of the letter read: “Please be advised that the timeframe given to Africoat by our client to move out all their equipment/properties from our client’s facilities had since elapsed on July 20, 2018, while we note that Africoat are yet to comply with this demand.

“However, our client is constrained to give Africoat up till November 30, 2018 to move out all their equipment/properties from our client’s facility as a sign of good faith on its part.”

Before this final notice was issued, another letter from Detailed Commercial Solicitors (DCS), dated June 29, 2018, had terminated the agreement between LADOL and Africoat over what the law firm described as Africoat’s payment default.

The letter, which was also signed by Mr. Anthony Ezeamama and addressed to the Managing Director of Africoat Nigeria Limited, was titled “Re: Services Agreement –Notice of Termination.”

According to the letter, “we act for Ladol Integrated Logistics Free Zone Enterprise (LILE) and write further to the Services Agreement between Africoat Nigeria Limited and our client dated June 7, 2013 and amended Services Agreement dated November 27, 2015.

“Following Africoat’s refusal to comply with LILE’s notice of payment default dated June 4, 2018 for thr settlement of its outstanding invoices, LILE hereby terminates the Services Agreement with immediate effect from the date of receipt of this letter.

‘”Take notice that the termination of the Services Agreement is without prejudice to Africoat’s obligation to pay the accrued outstanding sum to LILE together with its fulfillment of all its outstanding obligations to LILE at the effective date of termination of the Services Agreement.”

It was also gathered that Africoat had received a second letter from DCS dated July 13, 2018, which placed Africoat on notice that the company’s workers will no longer have access to Africoat’s facility because they would not be allowed into LADOL Free Zone.

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