Oil & Energy

Oil Firms In Legal Tango Over Local Regulations Violation

Published

8 years ago

September 10, 2018

Lagos Deep Offshore Logistics (LADOL), operators of the Egina Floating Production Storage and Offloading (FPSO) has sued its partner Samsung Heavy Industries, over an alleged disregard for Nigerian laws and regulations on doing business.
LADOL is in charge of logistics for the Egina FPSO while Samsung handles the fabrication and integration.
There has been wrangling between the partners over claims that LADOL imposes charges outside the contract of the Lagos free zone thereby making it unattractive to investors.
According to media reports, LADOL had allegedly imposed a one per cent charge on the $3.3 billion Egina Floating Production Storage Offloading (FPSO) by Samsung Heavy Industries which the company claimed was not in the original contract documents.
The company denied the allegation. But the disagreement between the companies has snowballed.
In a statement issued over the weekend, LADOL’s managing director, Jadesimi Ladi, stated that her company had filed a suit at the Federal High Court against Samsung alleging that its partner’s operation in Nigeria has been fraught with “mischief and reckless disregard for stakeholders” including regulators, employees and Nigerian citizens.
“Samsung has brazenly and persistently flouted Nigerian laws and breached contracts it duly signed with Ladol and its affiliates,” the statement read.
According to Ms Ladi, the suit was precipitated by Samsung’s “refusal to abide by conditions of service for Nigerian staff and abuse of Nigerian workers, violating procedures of the Nigerian Customs Service, Violation of Nigerian immigration procedures, breaches of Nigerian Content Development and Monitoring Board regulations, refusal to remit statutory tariffs to the federal government despite several demands from the Nigerian Export Processing Zone Authority.”
She also alleged that Samsung was “sponsoring the publication of malicious and false information about Nigerian government agencies and the business climate in Nigeria, thereby denigrating the Ease of Doing Business regimen in Nigeria, Persistent failure to comply with rules and regulations of the Free Zone, concealing sums of money provided for in the head contract from LADOL, their local content partner.”
LADOL’s boss further accused Samsung of “demanding huge unconscionable variations from their client (Total/NNPC Joint Venture) and by extension from the Nigerian people, exclusion of their Nigerian content partner from operational activities, and thereby refusing to transfer technology and blatant repudiation of major contractual terms in agreements duly signed with Ladol.”

“Samsung’s activities threaten the safety and peace of the free zone and of other responsible Nigerian and foreign Enterprises doing legitimate business within the zone. Samsung is committed to operating in a manner that brazenly defies our Nigerian regulators, flouts our laws, maltreats Nigerian workers and sabotages the economy of our dear country,” the statement claimed.
Ms. Ladi added that her company has, therefore, decided not to renew Samsung’s licence.
“Samsung failed to meet the minimum standard required to qualify for an Operating License in a Free Zone, their license has therefore expired without renewal Samsung’s Sublease Agreement has been duly terminated”
“Ladol has been the local content partner for Samsung Heavy Industries Nigeria (Samsung) for the Egina FPSO project. As a responsible Nigerian company, Ladol has put public duty and national interest ahead of its private interests and concerns for some time, with respect to the Egina project and the actions of Samsung. However, LADOL now has no choice but to bring to the fore issues that have arisen due to the actions of Samsung.”

Oil & Energy

15-Year Blackout: NDPHC Begins Electricity Project In Kaduna Community

Published

5 days ago

October 26, 2026

The Tide

The Niger Delta Power Holding Company Limited (NDPHC) has commenced a major electricity project aimed at ending a 15-year blackout in Rigasa community, Igabi Local Government Area of Kaduna State.

The General Manager, Corporate Communication and External Relations, NDPHC, Nazo Agim, made this known in a statement, in Abuja, at the weekend.

Agim said that the project, facilitated by the Bola Ahmed Tinubu Ideological Group (BAT-IG), comprises a two-kilometre 11kV line, a 1.5-kilometre 33kV line and a 7.5MVA, 33/11kV injection substation.Access Services

According to him, the project is designed to strengthen electricity distribution and improve power supply to residents and businesses in the community.

He said that the Rigasa project underscored NDPHC’s commitment to extending critical electricity infrastructure beyond generation to bridge distribution gaps.

He also said that the project would stimulate socioeconomic development and improve the quality of life in underserved communities across Nigeria.

Agim disclosed that a groundbreaking ceremony was performed earlier on Friday, by the Kaduna state Deputy Governor, Dr. Hadiza Balarabe, who represented Governor Uba Sani.

According to him, Balarabe, while speaking during the ceremony commended NDPHC for the intervention, describing it as a life-saving initiative that would address the community’s longstanding electricity challenges.

The NDPHC Managing Director, Jennifer Adighije, reaffirmed the company’s commitment to addressing the community’s electricity challenges.

Represented by the Executive Director, Networks, Babayo Bello, Adighije also reiterated NDPHC’s commitment to supporting President Bola Tinubu’s vision of improving electricity supply across the country.

She said that although NDPHC’s primary mandate was power generation, the company’s interventions also extended to transmission and distribution infrastructure to address critical gaps and expand electricity access.

According to her, the Rigasa project represents a worthwhile investment that will ease residents’ hardship and demonstrate the impact of targeted infrastructure development in underserved communities.Access Services

NDPHC Executive Director, Strategy and Commercial, Patrick Obahiagbon, commended the Kaduna state government and the community for their cooperation and support for the project.

The District Head of Rigasa, Mohammed Idris, also commended NDPHC’s management for its commitment to expanding electricity access in the community.

Oil & Energy

FG Commissions 640MW Transmission Capacity To National Grid

Published

5 days ago

October 26, 2026

The Tide

As the federal government intensifies efforts to strengthen Nigeria’s power infrastructure, it has commissioned 640 megawatts (MW) of electricity transmission capacity to the national grid with an additional six transmission substations in Kano and Katsina states, respectively.

The projects comprise four substations at Walalambe, Kumbotso, Dakata and Dan-Agundi in Kano State, which collectively add 544MW of transmission capacity, and two 60 megavolt amperes (MVA) substations in Kankia Local Government Area of Katsina State, contributing another 96MW.

The additional capacity is expected to improve the transmission network’s ability to evacuate and deliver available electricity to distribution companies and consumers in the two states.

The Ministry of Power announced the developments in a statement issued at the weekend.

According to the statement, the additional capacity is expected to improve the transmission network’s ability to evacuate and deliver available electricity to distribution companies and consumers in the two states.

The projects, however, increase transmission capacity rather than electricity generation, implying that their impact on supply would depend partly on the availability of power from generating plants and the capacity of downstream distribution networks.

Speaking at the commissioning of the Kankia substation, the Minister of Power, Joseph Tegbe, said the projects reflected President Bola Tinubu’s commitment to improving the country’s electricity infrastructure.

“Mr. President’s Renewed Hope Agenda recognizes that economic ambition requires dependable infrastructure,” Tegbe said.

He added that investments in electricity infrastructure would strengthen the foundations for business expansion, employment and economic growth.

The Kankia substations comprise two 60 MVA, 132/33 kilovolt (kV) facilities designed to strengthen the transmission network serving Katsina State and neighbouring areas.

Tegbe said the infrastructure would improve the network’s ability to distribute available electricity, supporting commercial activities and household welfare.

He also urged residents to protect the facilities against vandalism and other activities that could disrupt electricity infrastructure, asking them to report suspicious activities to TCN or security agencies.

Katsina State Governor, Dikko Umaru Radda, described the project as a significant investment in the state’s electricity infrastructure.

Radda stated that improved electricity supply could support industrial development, economic growth and public service delivery.

He further commended the President, the Federal Ministry of Power and TCN for completing the project.

It would be noted that the latest projects come amid a broader government’s drive to address bottlenecks in Nigeria’s electricity transmission network, which has constrained the amount of electricity that can be delivered to distribution companies and end users.

Oil & Energy

NBTI Unveils $600m Investment Pipeline Innovation

Published

5 days ago

October 26, 2026

The Tide

The National Board for Technology Incubation (NBTI) has unveiled an investment and development-finance pipeline exceeding $600 million, alongside a proposed solar energy programme targeting one million micro and small businesses across Nigeria.

The Director-General, NBTI, Dr Kazeem Raji, disclosed this while presenting the outcomes of the 2026 NextGen Innovation Challenge at a World Press Conference, Abuja.

Raji said the investment pipeline comprised a proposed $500m solar energy programme for universities and polytechnics, which would be developed in partnership with Gigawatt Global, and a $100m financing opportunity linked to the Tinubu Light Initiative under a memorandum of understanding with Financial Innovation for Impact, UK, also known as Cambridge Investors.

He, however, clarified that the funds had not been fully secured or disbursed, stressing that their realisation would depend on due diligence, financing arrangements, contractual commitments, regulatory approvals and implementation requirements.

“These figures represent proposed investment and financing opportunities and should not be interpreted as $600m already received, disbursed or fully deployed in Nigeria,” he said.

According to Raji, the initiative was designed to connect Nigerian innovators with international investors, business leaders and development partners to accelerate the commercialisation of indigenous technologies.

He said the challenge attracted 298 Nigerian innovators from all 36 states and the Federal Capital Territory, up from 105 participants in 2025.

The innovations showcased covered artificial intelligence, robotics, agriculture, healthcare, education, renewable energy, telecommunications, digital technology, enterprise software, 3D printing and advanced manufacturing.

“Our message is straightforward: Nigeria’s innovators deserve visibility, our enterprises deserve opportunities to grow, and our technologies deserve pathways to the marketplace,” Raji said.

He added that NBTI’s priority was to move beyond showcasing ideas to helping innovators develop commercially viable products, establish sustainable businesses and create jobs.

The proposed Tinubu Light Initiative is expected to support one million micro and small businesses through access to solar energy solutions, with a proposed target of training and deploying 10,000 field marketers and creating 50,000 direct youth employment opportunities.

The initiative also targets N30bn in blended financing for its first phase and estimates annual economic benefits of about N12bn, subject to its underlying assumptions and implementation outcomes.

Raji said the programme was conceived to address the energy challenges facing small businesses, including high operating costs associated with unreliable electricity and dependence on petrol and diesel generators.

Tailors, barbers, hairdressers, pharmacies, food vendors, neighbourhood retailers, printing businesses and digital-service providers, he stated, are among the potential beneficiaries.

He said the initiative also envisaged opportunities to promote business formalisation and financial inclusion, particularly among informal enterprises, where appropriate arrangements could be established.

However, the NBTI director-general acknowledged that the programme’s success would depend on sound financing, transparent beneficiary selection, reliable equipment, maintenance arrangements and measurable delivery.

“Our vision is to make clean-energy access an enabler of enterprise development, not merely an infrastructure intervention,” he said.