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Lagos Deep Offshore Logistics (LADOL), has terminated the operating licence of Africoat Nigeria Limited from the LADOL free zone in Lagos.
This is coming barely two months after Samsung Heavy Industries Nigeria (SHIN) Limited’s operating licence was withdrawn. Africoat was conceived to take advantage of the investment opportunities 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 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 warehouse for pipe-coating operations.
However, our correspondent gathered 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.
