LADOL Charges are Statutory, MD Says amid High charges allegation

ABIOLA Seun |

The Lagos Deep Offshore Logistic (LADOL) Base has denied report of high charges in the oil and gas free zones, saying all charges levied in the Free Zone by the Authority and the Management are statutory, including the recently referenced 1% charge.

Recall that there are recent reports from foreign investors in Nigeria’s oil and gas sector over high charges in Nigeria’s oil and gas free zones, saying the development would discourage efforts to attract investments and grow the country’s oil and gas reserves and production capacity.

It was reported that investors who staked millions of dollars in some of the private free zones are on the verge of losing their investments after demonstrating faith in Nigeria’s operating environment.

But, at a press briefing by the Managing Director of LADOL, Dr Amy Jadesinmi stated that all tariffs are mandated by Federal Government policies, which are subsequently issued within a transparent framework.

She said, “No Free Zone Enterprise operating in LADOL Free Zone has ever been charged any amount by Management or the Authority that was not on the Government approved tariff schedule.

“The Enterprises operating within LADOL Free Zone and the related parties have met with and discussed these charges with government in detail, as they are statutory charges. This is not a unilateral action and to state otherwise is incorrect.”

“To operate within a Free Zone, companies must meet certain legal criteria. These criteria include compliance with zone regulations on employment and working conditions, as well as obeying free zone rules and the laws of the Federal Republic of Nigeria.”

Jadesinmi further disclosed that the charges at the free zone are known to the law and are required to maintain the zone.

“Free Zones in Nigeria offer investors a peaceful, safe, and cost-effective environment, with minimal bureaucracy. By design, the benefits foreign companies enjoy far outweigh the statutory charges levied by the Free Zone Management and Authority.

“The charges are known and required to maintain the zones and the Free Zone Scheme.

Operating in LADOL under the Federal Government’s “Ease of doing Business” regime results in real local content, which in turn means real cost savings for the companies operating in the Free Zone and the creation of thousands of jobs for Nigerians.”