The positive intervention of the various agencies of the federal government for the resolution of the feud between Samsung Heavy Industries Nigeria Limited (SHIN) and LADOL, has boosted the confidence of Korean companies in Nigeria, THISDAY’s investigation has shown.
It was gathered that with the resolution of the feud between SHIN and LADOL, many of the big Korean companies have shown interest in investing in the various sectors of the Nigerian economy.
Multiple sources close to these companies confirmed to THISDAY that some of these companies are planning to establish strong presence in Nigeria.
“The promoters of these companies believe that the intervention of the various agencies of the government is a demonstration of the commitment of the administration of President Muhammadu Buhari to encourage foreign companies to invest in the country,” one of the sources said.
He disclosed that a number of Federal Government agencies like the Nigerian Ports Authority (NPA), Nigerian Content Development and Monitoring Board (NCDMB), Department of State Services (DSS) and other agencies have made positive interventions to resolve the feud which tore the partnership between SHIN and LADOL apart.
“The most audacious intervention was made by the NPA recently when it leased a total of 11.2426 hectares of the land (where SHI-MCI FZE yard is located) at the LADOL free zone to SHIN with a view to protecting the company’s investment at the base,” he disclosed
“’This singular act by the NPA has reassured foreign investors, particularly Korean companies that the Federal Government is determined to protect their investments in Nigeria,” he added.
According to him, SHIN’s new lease with NPA has reassured investors of the security of its investments.
This development has encouraged other South Korean companies to look forward to coming into the country.
“When SHIN came into Nigeria and constructed Africa’s first ever Fabrication and integration yard, a lot of other Korean companies, including companies in the Samsung group had showed interest to come into Nigeria but were discouraged by the feud between SHIN and LADOL,” another source close to one of these Korean companies said.
“But with these various interventions, some of these companies are looking forward to the final resolution of the dispute to make their investment decisions,” he said.
Although, the issues between SHIN and LADOL have not been finally resolved, these potential inventors are said to be hopeful that the efforts of NPA and other regulatory agencies will yield the desired results.
Some of the companies that have eyes on Nigeria include other members of the Samsung Group of Companies such as world-leading Korean automobile company and Samsung Construction & Trade, which came to global limelight when it built the Burj Khalifa, the tallest skyscraper in the world. It was also gathered that Samsung Construction & Trade, which was operating in Nigeria later left due to the harsh operating environment in Nigeria.
This planned investment will be a big boost to the efforts of President Buhari to encourage made-in-Nigeria cars, which will be cheaper than the imported ones.
It is therefore imperative that the Federal Government pursues the resolution of the dispute to its logical conclusion.