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. 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.’’
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. 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.’’
Read more https://nairalaw.com/just-etisalat-pulls-out-of-nigeria/