Respite came following the formal signing of a Memorandum of
Understanding (MoU) on the sub-lease in terms of settlement and service
agreement between both parties. This brought to an end the conflict that arose
between Samsung and Ladol in 2018.
Present at the landmark ceremony were stakeholders in the
nation’s economic zones, including Managing Director/Chief Executive, Nigeria
Export Processing Zones Authority (NEPZA), Professor Adesoji Adesugba; acting
Managing Director, Nigerian Ports Authority (NPA), Mr. Mohammed Bello Koko.
Others were Executive Chairman/Founder, LADOL, Chief Ladi
Jadesimi; erstwhile Managing Director, Samsung Heavy Industries (SHI) Nigeria,
Mr. Jejin Jeon; and Chairman, Nigerian Economic Zones Association (NEZA), Chief
Oluwatoyin Elegbede.
Adesugba said the dispute had shut out investments worth
over $7 billion and 3,000 jobs, adding that the peaceful resolution would also
provide direct employment opportunities to over 10,000 Nigerians.
He said, “We are very happy that we have been able to
actualise Mr. President’s directive that we must as a matter of national
urgency ensure that this dispute is arrested.
“We are celebrating that investments worth this quantum is
being unlocked into the Nigerian economy and we hope that we will continue to
monitor what is happening between Samsung and LADOL to ensure that they live up
to the spirit of what they have signed today.
“We expect that we shall start seeing visible results within
the next couple of months, not up to a year; we will start seeing employments
and different projects coming into the country.
“We were in Seoul, 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 the investors and Nigeria.”
He also attributed the resolution of the five-year
commercial conflict to the setting up of ADR unit on his assumption of office,
in collaboration with the National Dispute Resolution Centre at the Abuja
Chamber of Commerce (ACCI).
Adesugba said, “What NEPZA has done is that as soon as I
resumed office last year, we set up the NEPZA Alternative Dispute Resolution
Centre. And you can see, this is the outcome of what we did.”
He commended President Muhammadu Buhari for his insistence
on unlocking investments in the country as well as the Minister of Industry,
Trade and Investment, Mr. Niyi Adebayo, for his role and leadership to ensure
the success of the intervention.
Speaking at the occasion also, Koko said the conflict, which
had previously defied multiple attempts towards a resolution, had led to loss
of jobs and revenue to government.
He stated, “In the past three years, no activities have been
taking place there (economic zones). There’s been loss of economic values and
loss of jobs. So we are happy that has been resolved today. Both parties have
agreed to work together and going forward, if there are any disputes, NPA will
be involved in it.
“We want to thank President Muhammadu Buhari who had taken
the action that has led to the resolution of this dispute. Today is a happy day
and is good for the nation and this would ensure that confidence of investors
improve in term of foreign direct investment in Nigeria.”
Amid the imbroglio in 2020, Buhari had issued a directive to
NPA to return the land taken away from Ladol to the company, but the order was
not implemented.
“Today, we are formally implementing that directive. And the
essence of this is to ensure that both parties resolve their problem and
activities at the yard in Ladol actually starts,” Koko added.
In an interview with THISDAY, Jadesimi confirmed that the
disagreement between LADOL and Samsung had finally been laid to rest in the
interest of the Nigerian economy.
He said, “The meeting today is to bring an end to a dispute
between the Ladol Group and SHI, which has been lingering for a little while
and which became critical that it be sorted out. And now it has been completely
resolved.”
“The key thing is to be able to resolve it peacefully for a
far stronger joint venture going forward. It was a commercial dispute but the
key thing is that it had been completely resolved in the interest of the
Nigerian economy.”
On his part, Jeon said the resolution of the crisis would
foster greater collaboration with all parties towards achieving better
performance in the industry.
He said the dispute had further strengthened and reinforced
SHI’s relationship with its partners.
Jeon added, “Based on that experience and enforcement, I am
sure both Samsung and Ladol under the leadership of relevant government
agencies, we will continue our collaboration for the growth of the industry and
our business.
“Our assignment will not damage any relationship with the
Nigerian government and our industry.
“So based on our 10 years of experience, good and bad
experience, including those disputes but I think through those disputes, our
relationship with our partners have been far more strengthened and reinforced.”
Jeon also expressed regret over what transpired over the
past decade, expressed confidence that, God helping, the industry will witness
better improvement going forward, adding that Samsung will be part of Nigeria’s
development.
Chairman, Nigerian Economic Zones Association (NEZA), Chief
Oluwatoyin Elegbede, said, “The Nigerian Economic Zones Association is very
happy for the resolution of this problem because this is a problem between two
of our members, Ladol and SHI. It’s been on for a decade and we just thank God
that this has been resolved today.”
Essentially, the dispute over land lease between the LADOL,
an indigenous firm, and SHI, a Korean firm, started in 2018, with NPA’s
purported unilateral revocation of the presidential 25-year lease approval granted
to Ladol and its replacement with a Direct Lease in 2019.
NPA, by that action, claimed to have taken a portion of land
from Ladol and leased to Samsung.
The controversy led to the closure of business activities in
the zone by both firms with over 3,000 job losses, halting of economic value
chains and other losses that have stifled free flow of revenues to government
and further investments.
In view of the unabated dislocation the dispute made on the
country’s industrialisation process, another presidential directive was issued
in 2020 to reaffirm the 2018 presidential approval of the land to Ladol.
However, the latest presidential directive was also
jettisoned.
Concerned by the prolonged dispute, Minister of
Transportation, Mr. Chibuike Ameachi, waded in. Amaechi instructed Koko to
ensure the presidential directive, as communicated by the Attorney-General of
the Federation (AGF), was implemented without further delay.
But two other resolved issues hinged on SHI MCI FZE’s
sub-lease agreement with a LADOL affiliate, Global Resources Management Limited
(GRML) and SHI MCI’s operating licence as a free zone enterprise within the
LADOL free zone.
By this settlement, all the cases filed in various courts by
the two parties have been withdrawn with the stage set for full-scale operation
to begin in that business ecosystem.
The terms of settlement were agreed in January and both the
lease and sublease agreements were formally signed yesterday.
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