Court restrains LADOL from banishing SHI from free trade zone in Lagos

Lagos State High Court has granted an interim order restraining Global Resources Management Limited and Lagos Deep Offshore Logistics (LADOL) from ejecting Samsung Heavy Industries (SHIN) Nigeria Limited and its subsidiary, SHI-MCI FZE, from the LADOL free zone in Lagos.

This was confirmed in a statement released by the spokesman of SHIN and chief operating officer (COO) of the company, Mr. Frank Ejizu.

According to Ejizu, the court order restrains LADOL from further unlawful interference with Samsung’s use of its fabrication and integration yard within the LADOL Free Zone Area.

“The High Court in Lagos granted an interim order restraining LADOL from evicting Samsung from Samsung’s fabrication and integration yard within the LADOL Free Zone. The Court ordered that Samsung be free to move in and out of its yard with its employees, agents and service providers. Furthermore, the court has directed LADOL to provide all services such as water and power supply to Samsung,” Ejizu said in the statement.

Ejizu added that the crucial court order allows Samsung to continue its operations unhindered while legal proceedings are ongoing. The decision of the High Court in Lagos is binding on LADOL and prevents it from unlawfully evicting Samsung from the fabrication yard or interfering with Samsung’s proprietary rights.

It was reported that the management of Global Resources Management Limited (GRML), a subsidiary of LADOL banished Samsung Heavy Industries (SHI) Nigeria Limited from the LADOL Free Zone in Lagos.

SHI was barred from LADOL’s dockyard over an alleged expired operating licence. There are indications that the SHI banishment would likely affect the flow of the $3.8 billion Egina FPSO Project.

LADOL had shed light on the reason why it ejected the SHI from the LADOL Free Zone in Lagos. In a release by the company’s legal adviser, Prof. Fidelis Oditah (SAN) cited “unremedied and material breaches of sublease covenant” as the first reason for the termination of the agreement.

Oditah also alleged that SHI had earlier approached the Nigerian Ports Authority (NPA) to carve out a portion of GRML’s leased land and grant a direct lease in SHI favour so that it could deal directly with all government regulators without needing to go through GRML or the zone management.

Lastly, he also alleged that there are indications of SHI MCI FZE’s anticipatory breach of the sublease agreement.


Source: Nairametrics

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