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Report: NPA revokes LADOL’s land lease agreement over infraction

Report: NPA revokes LADOL’s land lease agreement over infraction
February 09
12:55 2020
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The Nigerian Ports Authority (NPA) has reportedly revoked its land lease agreement with Lagos Deep Offshore Logistics Base (LADOL) at Tarkwa Bay over alleged violation of the terms of the contract.

According to THISDAY, LADOL subleased 11.24 hectares of land to Samsung Heavy Industries Nigeria Limited (SHIN) from the total 121 hectares leased to it at outrageous amount, and without approval from the NPA.

It was alleged to have collected $45 million (N16.2 billion) for the portion of land for which it paid $524,105 (N37.73 million) to the NPA.

NPA granted GRML a 21-year lease over 80 hectares of land at Takwa Bay in January, 2003, while another lease of 34 hectares was later granted, until the total hectares were 121.

THISDAY, however, cited documents as revealing that during a period of five years, LADOL through Global Resources Management Limited (GRML), its affiliate, charged SHIN $9 million as rent per year for the portion of land which it was paying $104,821.95 annually to the ports authority.

In a letter dated November 22, 2013, GRML applied to NPA to sublease the 11.246 hectares to MCI-SHI FZE for the “purpose of expanding facilities at LADOL Offshore Support Facility in readiness to handle the integration of the Egina FPSO onshore in Nigeria for the Nigerian National Petroleum Corporation (NNPC) and Total Upstream Nigeria.”

The report said while NPA obliged in March 12, 2014, it “suspected foul play when GRML failed to furnish it with the sublease agreement between it and SHIN throughout the tenor of the sublease, so as to conceal the actual amount it collected from SHIN.”

“Apart from allegedly profiting at the expense of the federal government by collecting outrageous amount from SHIN and paying far less to the NPA, documents also showed that LADOL, through GRML had also entered into another sublease agreement with an American company called Africoat Nigeria Limited, without any recourse to the NPA contrary to the provision of the head lease agreement with NPA,” it said.

“A letter to the Managing Director of the NPA by the General Manager, Land and Assets Administration, dated November 14, 2019, notified the NPA boss that there was evidence to show that GRML granted at least a sublease to SHI-MCI in September 13, 2013 without any recourse whatsoever to the NPA.”

The NPA was said to have acted upon the recommendation in the letter and terminated the contract before leasing the 11.24 hectares to SHIN in a fresh agreement of $219,700.00 per year.

Kunle Kalejaiye, LADOL’s public relations officer, was quoted as saying he was not authorised to speak on the matter which he said is currently in court.

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Exchange Rates

March 25, 2019USDGBPEUR
INTERBANK306397354
LAGOS380478402
KANO375477498
PH380478498
ABUJA375476400
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
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