Etisalat To Pull Out Of Nigeria In Three Weeks Time
The
Abu Dhabi-owned telecommunications networks took the decision after it’s $1.7bn
loan talks collapsed.
Chief
executive of Etisalat International, Hatem Dowidar said on Monday that the
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 $1.2bn loan failed.
Although
Etisalat Nigeria in a statement issued three weeks ago claimed that it had
repaid 42 percent 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 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, 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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