Breaking: Etisalat Ready To Leave Nigeria
Etisalat
has terminated its management agreement with its Nigerian arm and has given
Etisalat Nigeria three weeks to phase out the brand in the country.
The
decision of the Abu Dhabi owned telecommunications networks resulted after the
failure of its $1.7 billion loan talks collapsed.
Chief executive of Etisalat International, Hatem Dowidar said on Monday that there was no need for the brand in Nigeria after the collapse of the loan talks.
Nigerian regulators intervened last week to save Etisalat Nigeria from collapse after talks with its lenders to renegotiate a $1.2 billion loan failed. Although Etisalat Nigeria, in a statement issued three weeks ago, claimed that it had repaid 42 per cent of the loan. “As at today, we can categorically state that the outstanding loan sum to the consortium(of banks) stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars.
Chief executive of Etisalat International, Hatem Dowidar said on Monday that there was no need for the brand in Nigeria after the collapse of the loan talks.
Nigerian regulators intervened last week to save Etisalat Nigeria from collapse after talks with its lenders to renegotiate a $1.2 billion loan failed. Although Etisalat Nigeria, in a statement issued three weeks ago, claimed that it had repaid 42 per cent of the loan. “As at today, we can categorically state that the outstanding loan sum to the consortium(of banks) stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars.
This in
essence means almost half of the original loan of $1.2bn, has been repaid.
“Etisalat continued to service the loan up until February 2017, when
discussions with the banks regarding the repayment restructuring commenced,”
Ibrahim Dikko, vice-president, Regulatory & Corporate Affairs of Etisalat
Nigeria said. However, Etisalat International announced on Monday that it was
pulling out as all UAE shareholders of the company have exited and left the
board and management of the Nigerian brand.
Dowidar
said discussions were ongoing with Etisalat Nigeria to provide technical
support, adding that it can use the brand for another three-weeks before
phasing it out. Nothing has been said about how this will affect the network
and its integrity as million of Nigerians are subscribed to the network. In
June, the Nigerian Telecommunications Commission (NCC) assured that the
network’s integrity would not be compromised amid the loan disagreements.
Director, Public Affairs of NCC, Mr. Tony Ojobo had said that the commission’s
attention had been drawn to the planned takeover by the consortium of banks.
Ojobo said
that the regulatory body was aware of the indebtedness of Etisalat to the
consortium.
According to him, the NCC in conjunction with
the Central Bank of Nigeria (CBN), has mediated by holding several meetings
with the banks, Etisalat and other stakeholders to find a solution.
“Regrettably, these meetings did not yield the desired results. “The NCC wishes
to reassure about 21 million Etisalat subscribers that it will do all within
its regulatory power to ensure that Etisalat subscribers continue to enjoy the
services provided by the operator.
“The
commission has taken proactive steps to cushion the impact of the takeover;
this is without prejudice to the ongoing effort between Etisalat and the banks
toward a negotiated settlement. “NCC wishes to reassure all stakeholders in the
telecommunications sector, in particular the subscribers on the Etisalat
network, that it will ensure that the integrity of the network is not compromised.’’
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