Talks between Etisalat and its lenders to rene-gotiate the terms of a $1.2 billion loan have hit brickwall after the telecoms firm missed a payment, two sources with knowledge of the matter told Reuters.
Lenders, under pressure to avoid loan-loss provisions, are pushing to finalise the debt restructuring before next month’s half-yearly audit, a banking source said.
Etisalat met with the lenders in London on April 28 led by Guaranty Trust Bank (GTBank) but they could not agree a way forward, the sources said.
Etisalat could not be reached for comment.
The telecom firm signed the medium-term seven-year facility with 13 local banks in 2013 to refinance a $650 million loan and fund expansion of its network, but is now struggling to repay.
Etisalat Nigeria told Reuters that it was in talks with lenders to restructure the loan after it missed a payment.
“There is no conclusive view on the way forward. The most viable solution which the banks are pushing for is for the shareholders to inject equity into the business,” one banker said after the meeting.
A source at Etisalat, which owns 45 per cent of the Nigerian company, said the telco was not willing to invest more after converting some loans it made to the affiliate to equity and writing down its investment to $50 million.
Abu Dhabi’s state-owned fund Mubadala owns another 40 per cent.
Etisalat is the biggest foreign-owned victim of the dollar shortages plaguing Nigeria’s financial system.
Nigerian regulators in March agreed with local banks to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.
But lenders are keen to keep a lid on rising non-performing loans (NPLs) to preserve their capital as Africa’s biggest economy battles a recession and currency crisis. Bharti Airtel – 19 percent.
Tag: deadlocked
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$1.2b load: Etisalat, lenders’ talks deadlocked
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Strike: Governor/Labour meeting deadlocked
Ondo State Governor Olusegun Mimiko yesterday pleaded with Labour leaders to suspend their over three weeks strike.
He held a meeting with them for hours.
By 7pm yesterday, the two parties could not agree and the meeting was rescheduled for tomorrow.
The government pleaded that it could only pay one out of the six months salary arrears.
The meeting, which started at 11am on Monday, lasted till yesterday evening, with the Labour leaders led by the Chairman of the Nigeria
Labour Congress (NLC), Mrs. Bosede Daramola, insisting on the payment of three months salary.
The meeting, held at the Government House, Alagbaka, Akure, at the instance of Governor Mimiko, also had in attendance members of the State Executive Council (SEC).
Workers insisted on the payment of three months salary before they could suspend the strike.
Mimiko said the government has only N3.4 billion in its coffers, which can only pay a month salary.
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Mimiko fails to persuade striking workers to return
Moves by Ondo State Governor Olusegun Mimiko to ensure that workers called off their three-week-old strike yesterday proved abortive as the meeting he held with them was deadlocked.
The governor, who met the striking workers at the International Events Centre, Akure, appealed to them to return to work in the interest of the state and its future.
Mimiko said the state’s revenue was not sufficient to cater for the salaries of the workers, urging them to embrace the government’s move.
The governor, who said the state has “only N3.4 billion in the bank”, said the money could not be enough to pay a month’s salary, let alone the two months demanded by the workers.
Mimiko met with workers from level one to 17, explaining to them that only local government workers and primary schools’ teachers could be paid for a month.
The governor said their salaries would cost N2.7 billion and leaving N700 million.
“Workers’ salaries cost the government N3.9 billion per month and with this, government needs additional N500 million to pay the workers,” he said.
He pleaded with them to appreciate his intention not to pay half salaries, saying he was not happy with their plight.
Mimiko added that economic challenge was the major constraint of his government.
He said he was ready to pay the outstanding debts as soon as the economy improves.
But the state Chairman of the Nigeria Labour Congress (NLC), Mrs. Bosede Daramola, who responded on behalf of the workers, lamented the hardship being experienced by them.
She declared that the strike would continue until the state government is able to pay at least two months’ salaries.
Mrs. Daramola directed the workers to keep on with the industrial action until further directive by the NLC leadership.
She maintained that the excuses of the government was not tenable, saying workers have been in serious sufferings since January, this year.
She assured that workers would resume as soon as their two months’ salaries are paid.
The Joint Negotiating Council (JNC) Chairman, Comrade Sunday Adeyele, said the governor was not putting anything on the table to negotiate on.
He urged the workers to continue to speak with one voice.
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Community, DISCO meeting deadlocked
A meeting between residents of Igbehin-Adun in Ilasamaja, Mushin, Lagos and Eko Electricity Distribution Company (EKEDC) ended in stalemate.
There were hot arguments between members of the community, especially the youths, and EKEDC Mushin District officials during the meeting held at Olayinka Close in Ilasamaja on Tuesday.
Last week, the residents protested what they called the epileptic power supply in their area and “loath-some” billings by EKEDC.
Their representatives made their grievances known at EKEDC head office on the Marina in Lagos on September 3. They alleged that they were being billed for what they did not consume by the Iyana-Isolo and Idi-Araba districts of EKEDC.
The EKEDC team was led by the Distribution Manager, Francis Nduka, the Commercial Manager, Kunle Ogunmoroti, and Public Relations Officer Mrs Bola Bayo-Kujore. They were received by the community’s traditional leader, Rasheed Asheni-Irokosu; Omonigbehin Landlord Association’s chairman, Hon Dele Dasaolu and two community leaders, Chief S.K. Daniyan and Alhaji Ganiyu Olukotun.
An 11-point resolution was tabled before the EKEDC officials.
Tagged “Committee against EKEDC Injustice and extortion in Ilasamaja and its environs,” the resolution reads: “Rejection of outrageous ‘crazy’ bill in the name of estimated bill. Rejection of incessant power outage from the hours of 7pm till the following morning which makes the environ vulnerable to attack of thieves and armed robbers; rejection of the N750 monthly service charge and demand for the refund of the previous payment; rejection of any payment on prepaid meters through overt or covert means; demand for immediate repair of faulty feeder pillars, transformers and cables serving our environs; demand for free replacement of faulty prepaid meters; declare that we shall pay the sum of N2,000 monthly on energy consumed pending the time prepaid meter will be made available as it is obvious that the present estimated billing is customer unfriendly and killing; declare that EKEDC should write off all accumulated bills from the ‘crazy’ bill and outrageous estimated bill regime; declare that there should not be any distribution of bills and disconnection pending the time issues raised above are resolved; declare that we are law abiding Nigerians ready to pay for energy consumed as long as the right parameters in billing are followed and declare that EKEDC Officials are safe in our environment in the discharge of their statutory duties.”
Neither party was ready to shift ground after hours of discussions. They have agreed to meet again to resolve the knotty areas.
Until then, the community leaders urged residents not to pay any electricity bill. EKEDC was enjoined to provide uninterrupted power supply. It was also advised against embarking on disconnection of electricity.
Although, Nduka promised the community 14-hour daily power supply, but many residents expressed doubt about EKEDC of fulfilling its promise.
Baale Asheni-Irokosu warned EKEDC against disconnecting light, pending the resolution of the dispute.
He also assured the EKEDC officials of their safety, describing the residents as peace-loving.
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Kogi West, Central meeting with Audu deadlocked
A meeting convened by the Kogi West and Central Forum For Equity and Justice, with ex-Governor Abubakar Audu, to discuss power rotation among the three senatorial zones, has ended in a deadlock.
The Independent National Electoral Commission (INEC) scheduled the governorship primaries for the last weekend in August and the election for late November.
The forum was established to push for power shift from Kogi East Senatorial District, which has dominated the political scene since the state was created on August 27, 1991.
Kogi West has seven local governments and Kogi Central, five. Both senatorial zones account for 12 of the 21 councils. Kogi East has nine.
The pattern of voting, following the introduction of the permanent voter cards (PVCs) and card readers, showed that Kogi West and Central accounted for 55 per cent of the total votes cast during the recent elections, while Kogi East had 45 per cent.
The forum, which is co-steered by the triumvirate of former Health Minister, Prof Eyitayo Lambo, ex-don at the Ahmadu Bello University, Prof. Yusuf Aliyu and elder statesman, Alhaji Idris Yusuf Tawari, aims to ensure that justice is done to Kogi West and Kogi Central, which have allegedly suffered neglect in the last two and a half decades.
Held at Audu’s Asokoro home in Abuja, the meeting had a 10-man delegation of five delegates each from Kogi West and Central. They included former General Officer Commanding Third Armoured Division, Maj.-Gen. Julius Olakunle Oshanupin, President of the Okun Development Association, Babatunde Paul Fadumiyo and ex-governorship aspirant on the platform of the defunct Unity Party of Nigeria (UPN) in the old Kwara State, Dr. David Atte.
Also on the delegation were Alhaji Yusuf Tawari and Alhaji A.G. Usman, who served as commissioner under Audu in 1992, all from Kogi West.
The delegates from Kogi Central included Audu’s deputy during his stint as governor from 1999 to 2003, Chief Patrick Adaba, former Special Adviser on Education to Audu in 1992, Prof. Angela Okatahi and Prof. Yusuf Aliyu.
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PENGASSAN, NNPC meeting deadlocked
•Strike begins midnight
The Nigerian National Petroleum Corporation (NNPC) arm of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and National Union of Petroleum and Natural Gas Workers (NUPENG) are to shut down NNPC branches nationwide as from today. This followed a deadlock in their ongoing meeting in Abuja, the Federal Capital Territory, with the management
of the Corporation and officials of the Federal Ministry of Petroleum Resources.
A statement by spokesperson of PENGASSAN, Comrade Babatunde Oke, said that the deadline issued the NNPC management to address the Union’s demands on Friday expired midnight yesterday.
Oke said that the Union’s demands for approval and adequate funding of the pension system, as well as embarking on Turn Around Maintenance (TAM) of refineries and restoration of crude to refineries, have not been met by NNPC management.
However, the management of NNPC on Monday assured members of staff and the general public that it was taking steps to avert the looming industrial action by the Corporation’s arm of NUPENG and PENGASSAN, it said the National Pension Commission (PENCOM) had given a 12-month window for the Corporation to comply with the Pension Reform Act (PRA) 2014 as amended.
PENCOM had earlier directed the Corporation to “immediately take all necessary steps to transit to the Contributory Pension Scheme under the PRA. In a fresh directive dated 15 September 2014, PENCOM stated: “In order to accommodate your concerns, the Commission hereby grants the NNPC a transition period of 12 months within which to ensure full compliance with the provisions of the PRA 2014,” a statement by NNPC’s Group General Manager, Public Affairs Division, Ohi Alegbe, said.
The Corporation appealed to the leadership of the industrial unions to exercise restraint while it embarks on extensive engagement with PENCOM to resolve the issues. The NNPC noted that since the commencement of the scheme in 2006, the management and its staff have made a lot of sacrifices to maintain the existing scheme and any premature cancellation of the scheme may lead to avoidable labour disaffection across board.
While acknowledging the existence of some funding gaps in the scheme, the Corporation informed stakeholders that measures have since been put in place to steadily bridge the funding deficit, which stood at N298 billion in 2010 and has now been provisionally reduced to N85 billion as at June, 2014. The statement stated that NNPC is in the process of transferring additional real estate property valued at several billions of naira to the scheme which is currently before the NNPC board for approval.
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ASUU’s deadlocked strike
When President Jonathan engaged the Academic Staff Union of Universities (ASUU) on their five months old strike, there was general optimism that the end to the dispute was in sight. After about 13 hours of negotiations between the executives of ASUU, leaders from the Nigerian Labor Congress NLC and Trade Union Congress TUC, key decisions were said to have been evolved to end the strike.
As part of the understanding, ASUU undertook to present the resolutions to its National Executive Committee NEC and report back to the federal government. The union subsequently came up with some conditions which it wanted the government to endorse for the resolutions to be binding and the strike called off.
These included the depositing of the N200billion revitalization fund for public universities in the Central Bank of Nigeria (CBN) and subsequent disbursement to the benefiting universities within two weeks; inclusion of the non-victimization clause in the agreement and insistence that the resolutions be signed by the government.
But the federal government saw these as entirely new demands and evidence that ASUU was up to sabotage all efforts at sorting issues. It therefore called for broke directing all Vice Chancellors of federal universities to re-open them immediately and threatened to sack all lecturers who defy this order by failing to report and sign the attendance register by last Wednesday.
ASUU is adamant insisting that the strike will continue in view of the turn of events. It has argued that the letter it wrote to the president through the supervising minister of education did not amount to new demands. According to the union, the N200 billion revitalization fund as contained in the government white is meant for 2013 and as such its demand that it should be disbursed within this time frame is nothing new. Similarly, it argued that the non victimization clause is a universal practice while the insistence that the resolutions be signed by both parties is a requirement of all agreements.
As things stand, the end to the strike is not in sight. There is every indication that the toughened positions of both parties might worsen matters. Thus the education system which has been lying prostrate these five months will continue to suffer further devastation as the strike lingers. The federal government and ASUU are in mutual recrimination as to who takes the blame for the current impasse. And the court of public is expected to give a verdict on the matter. Whether the verdict of the public will suffice to end the strike is a different kettle of fish altogether.
The key issue here is whether the three items contained in ASUU’s letter to the president constitute new conditions and whether ASUU was right to have made those demands. On the other hand, even if they were new demands, was it also proper for the government to have reacted in the way and manner it did? ASUU does not see them as new demands on the grounds of the reasons stated above. But that is exactly where it did not get the matter right. It does not consider asking the president to remit the N200 billion revitalization funds to the CBN and disburse same to benefiting universities within two weeks as a new condition. This is at best laughable. If it is not a new condition why did the union come up with it at the last minute? And why was it not raised during their meeting with the president? And if the non victimization clause is a universal practice as ASUU has argued, it should have been taken for granted. It wants all the decisions reached to be signed. What is not clear is whether it is the president with whom they sat in negotiation they want to sign that document. If it is so, they must have gotten the matter wrong. Discussions with the number one citizen of any country are not something to be trivialized. The impression one gets from all these is that the union does not trust the president. That is very unfortunate indeed. By giving the impression that the president cannot be trusted and then requiring him to sign the document, the ASUU leadership conducted themselves as if they have no respect for that office irrespective of whoever occupies it. The very fact that the president undertook personally to negotiate with them was enough for them to have given him the benefit of doubt. They should have deferred to him and watch out for the eventual outcome. But to now begin to insist that the president must deposit the money in the CBN and disburse same within two weeks is enough to ruffle shoulders. Things do not necessarily work out that way.
The impression one gets from the position of ASUU is that it want to win all. Zero sum game option in decision theory goes with fatal consequences. And as can be gleaned from the impasse, it has turned out a monumental calamity at a time hopes were high that the strike was about to end.
It is however, a different thing altogether whether the response of the government was the most appropriate in the circumstance. The government went to the extreme in its reaction to the new demands of the union. There are other ways the matter could have been handled without bringing about the current pass. The net effect of the action is the continuation of strike thus defeating the whole idea of getting our universities back to the classroom. It will not serve the cause of our universities better.
But central to the constant strikes in our universities is the issue of funding. It is not enough for the government to make commitments to fund the universities adequately. Neither will disbursing the agreed sum be the end to the poor funding of the universities. The truth of the matter is governments both federal and state are increasingly finding it difficult to fund the universities in the current form they are run. University education is very expensive. The government knows this. ASUU and the general public are not unaware of this also.
But for some inexplicable reasons bothering on political expediency, the federal government is yet to muster the necessary courage to be decisive on the introduction of school fees in the universities. That is the crux of the matter. It is not that the government is not willing to introduce such fees. It is afraid of the backlash of the policy given public perception of the waste and unabated corruption in public places. Our people see free university education as the only way to benefit from the enormous resources nature bestowed on this country bountifully.
That has been the problem. But for how long shall we continue with the rot in our universities on account of government’s inability to fund them adequately? The time has come for the government to rise to the challenge that it can no longer fund the universities solely. It is better we charge some fees and provide quality university education than allow the current drain in our foreign exchange on account of the high number of our citizens that study outside this country. Already some state universities have risen to this challenge by charging school fees like the private ones. Ironically, some of these fee paying state universities are also in the strike for very hazy reasons. And if one may ask, what is their business in this strike? Why should they deny children who have paid for their education access to it? Or are they also hoping to get part of the revitalization fund meant for federal universities? Such state governments must order the teachers back to classes now.
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Fed Govt, insurers meeting over premium deadlocked
A meeting convened by the Head of Service (HoS) and insurers over Federal Government’s unpaid premiums for its workers’ Group Life has ended in a deadlock as parties were not able to agree on a common ground, The Naton has learnt.
According to sources, a meeting was held last week in Abuja by insurance operators with the HoS with how outstanding premiums owed in 2011 and 2012 will be paid as top on the agenda of the meeting.
At the meeting, it was learnt that the HoS proposed different rates on 2013 Group Life for different Ministries, Departments and Agencies (MDAs), a proposal which was vehemently turned down by the insurers.
According to the source, based on the disagreement of rates, conclusion could not be reached for the insurance of government workers for 2013.
The source said insurers have decided to clos ranks, speak with one voice and resist any attempt by the government to pile up premium debt, adding that the ‘No premium, no cover’ policy enforced by the National Insurance Commission (NAICOM) has set the pace for a new era in the industry.
A source in NAICOM however said the commission will not compromise its position on ‘No premium, no cover’ policy adding that any underwriter who grants insurance on credit risks suspension of its license as stipulated in the law.
Section 9(3) The Pension Reform Act 2004 states that employers shall maintain life insurance policy in favour of their employees for “a minimum of three times the annual total emolument of the employee.”
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PDP crisis: Obasanjo’s peace moves deadlocked
Moves to restore peace to the crisis-ridden Peoples Democratic Party (PDP) failed on Tuesday night, as ex-President Olusegun Obasanjo and the 23 governors could not reach compromise on all issues.
The governors were divided on all issues, especially on the removal of the National Chairman of the party, Alhaji Bamanga Tukur and the crisis in the Nigeria Governors Forum (NGF).
Governors Rotimi Amaechi and Jonah Jang said they were not ready to forego their claim to the NGF chairmanship.
While Jang adopted an evasive ploy by saying he was still consulting, Amaechi told the session that only those who elected him could ask him to step down.
Amaechi added that most of those who elected him are not members of the PDP Governors Forum.
But the ex-President might go into another round of meeting with the governors to resolve the crisis.
The time of the third session was unknown last night.
Investigation by our correspondent showed that the knotty issues were the fate of Tukur, NGF crisis, handing over of party structure in the state to governors, automatic ticket for President Goodluck Jonathan and others.
A source said: “Many governors wanted Tukur to step aside to rebuild the party ahead of the 2015 poll, but a few others opposed the idea.
“Those who wanted Tukur to remain in office opted for a safety net by suggesting that President Jonathan should be allowed to determine Tukur’s fate.
“Some governors, however, warned that with Tukur in charge, PDP might be on the edge for 2015 poll.
“On the NGF crisis, neither Amaechi nor Jang was ready to step down. Each governor also took a position along the divide. There was no consensus on what to do.”
The source quoted Amaechi as saying: ‘I did not elect myself. If those who elected me ask me to step down, I will do so.’
“Jang said he would consult widely on the suggestion and get back as appropriate. It shows that the NGF crisis may persist.”
Responding to a question, the source said: “The governors disagreed with the automatic ticket proposal of the Tukur-led PDP National Working Committee.
“Instead, they said the President, governors, members of the National Assembly and state Houses of Assembly must undergo free and fair primaries to earn ticket to contest in 2015.
“They said unless there is internal democracy in PDP, the crisis rocking the party cannot end.”
But the governors asked the PDP leadership to allow them to be leaders of the party at the state level.
Their agitation was in contrast to the position of the party.
Another source added: “They wanted the party to hand over its structure to them at the state level. But the party is circumspect that if it does that, the governors will impose their stooges as candidates in 2015.
“From the look of things, ex-President Obasanjo and the governors might hold a third session to take decisions on the issues raised by the aggrieved governors of the party, including the crisis of confidence in the NGF and the increasing oil theft, which has affected the nation’s revenue profile.
“I think they are trying to allow the tension to calm down. The President might attend the third session.”
The issues rocking the party are division within PDP leadership; disagreement between some governors and Alhaji Tukur; the crisis in the NGF; crises in some states; Anambra governorship poll; Rivers crisis; reconciliation within the party; and the alarm raised by five North’s governors on how to keep the party intact and win 2015 poll.
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Budget: Jonathan’s meeting with lawmakers deadlocked
For the umpteenth time, President Goodluck Jonathan and National Assembly leaders have disagreed on four areas guiding the 2013 budget.
The budget comprises N2.3 trillion recurrent non-debt expenditure; N1.6 trillion for contribution to the development fund for capital expenditure; N387.9 billion statutory transfers; N591.7 billion for debt service; and a $79 benchmark.
Jonathan and the National Assembly leaders met for about three hours at the Presidential Villa last night and following a deadlock on the four areas, it adjourned for consultation, it was gathered.
According to sources, the areas of disagreement are no-access by the Executive to the budgetary allocations of the Securities and Exchange Commission (SEC) until its Director-General, Ms Arunma Oteh, is removed; extension of the lifespan of the 2012 Capital Budget to April; 2013 budget benchmark to remain at $79 per barrel; and mandatory quarterly briefing of the National Assembly by the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on the status of the implementation of the 2013 budget.
A source, who spoke in confidence, said: “These conditions were tabled as sacrosanct by the National Assembly but the Executive rejected them. Instead, the Executive wanted unconditional implementation of the budget.
“The Executive also insisted on a $75 per barrel benchmark, based on economic indices at its disposal. The National Assembly said it jacked up the budget benchmark by $4 per barrel to enable the Federal Government embark on massive infrastructural development nationwide.
Another source said: “The National Assembly leaders are just bending the rule because the statutory period allowable for the President to assent to the 2013 budget expired last Friday.
“If the deadlock subsists, the Assembly will have no choice than to pass the budget into law. This is the first time Nigeria will witness such a development.”
Those at the session were the President, the Minister of Finance, who is also the Coordinating Minister for the Economy; President of the Senate David Mark, Speaker Aminu Tambuwal and their deputies as well as other principal officers, among others.