LADOL free zone is a significant free zone in western Africa as it provides logistics, engineering and other support services to the member companies of the free zone region.
LADOL free zone is short for Lagos Deep Offshore Logistic Base and is set up on an island in the Port of Apapa, Lagos, Nigeria. Though it is deemed as a free zone, it is a privately owned logistics and engineering facility designed to provide support services such as logistics and supply chain to companies dealing in offshore oil and gas exploration and production nearby West Africa. The ultimate aim of the formation of such a free zone is to provide an opportunity for the locals to increase their knowledge and help in the growth of the economy of the country. Let us gain more understanding of LADOL, Nigeria.
Lagos Deep Offshore Logistic Base (LADOL)
LADOL free zone is one of the largest port in Nigeria and has been constructed to help the companies dealing in offshore logistics. The free zone is built on an unused piece of swampland, and it is fully integrated with all the facilities that a logistics company would need. It consists of a 200m jetty with an 8.5-meter draft and a load bearing area of 25ton/m2. There are also 30-ton markers at either side of the harbour which can be utilized to accommodate up to six supply vessels and three heavy lift vessels. The BASE provides the services related to logistics such as equipment handling, inventory management, storage facilities, and many more.
Since commencing the operations in the year 2006, Ladol Logistic Free zone has become the regions’ most extensive base for rig and vessel repair. LADOL acts as a one-stop-shop for the various oil and gas businesses operating in the area. Located in a strategically on the entry point to the Lagos Harbour, it allows the operators and contractors to maximize their efficiency and helps in the easy and secure transportation of goods to and from the western part of Africa.
LADOL, Nigeria has recently been further expanded and now also consists of a new facility, which is the Floating Production Storage and Offloading (FPSO) vessel fabrication facility. The FPSO is a floating ship of sorts which is mainly used by the oil and gas industry for the storage and processing of the oil and other hydrocarbons mined from the oil wells. With such a facility, the oil and gas industry will be significantly affected for the better.
Benefits of Opening a Company in LADOL, Nigeria
There are several benefits which LADOL provides to the respective oil and gas production and exploration companies. They are:
LADOL was nominated as a free zone in June 2006. This means that the companies set up within a specified territory do not come under the purview of the federal, state and local government, meaning that they do not need to pay taxes in Nigera.
If the companies in the LADOL free zone import any raw materials or goods which they require for the continuation of their various processes, they do not need to pay import duties to the state or federal government.
Whenever a company imports a good, it is first cleared by the Customs Department. It may take some time to get the goods cleared ranging from a week to a month depending upon the backlog in the customs department, which may result in losses for a company. In the LADOL free zone, the goods are cleared onsite by the customs and the imported goods are received quickly.
●Free Import of Items to be Consumed
If some item is to be imported which would be utilized by the company and the item would not leave the free zone in any manner possible, then in such case the items would be imported without levying any charge.
The company set up in the LADOL free zone will be eligible to receive the services offered by the Nigerian Port Authority or NPA for short. The services include harbour services, commercial services, security services, marine services, cargo services etc.
According to the Immigration Act, no person except a Nigerian citizen shall accept any employment without presenting the written consent of the director of immigration nor could the person practice a profession, either solely or in partnership without the permission of the minister. A company established in the free zone need not follow this rule and can hire foreign nationals for employment.
●100% Foreign Ownership of Investment
Outside the free zone, it is not possible for a company to have 100% foreign ownership, but the laws applicable outside the free zone do not apply to the companies inside the free zone.
●100% Repatriation of Capital, Profits, and Dividends
For a company set up in the free zone, it is possible to avail 100% repatriation of all the profits and dividend earned. This means that in case the company has a foreign member, he can send the profits earned back to their own country.
In the long run, LADOL free zone aims to become the standard for all the free zones in the nation. The increasing number of companies coming to the LADOL free zone will allow for widespread job creation and Economic growth of the country.
How to Establish a Company in LADOL Free Zone?
To set up a company in LADOL free zone, you must collect and fill up the application form which can be either downloaded from the portal of NEPZA or can be received at the nearest office of the same. This application needs to be submitted with the required feasibility study. When approved, the operating license will be obtained, which will be proof that you are now allowed to build a building or any other infrastructure required by you. After creating the required office or warehouse, all you need to do is to start conducting the business.
For a step by step guide to the company setup process, If you require assistance regarding setting up a company in Nigeria, you can avail the services of Business Setup Worldwide. Our team consists of experts who will handle all your business related problems and uplift your business in the LADOL free zone. If you are interested in establishing your company in the free zone, feel free to contact us - We’d be happy to help you.