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Tag: Etisalat Nigeria

  • Reps move to protect Interests of Nigerians others, in defunct Etisalat

    Reps move to protect Interests of Nigerians others, in defunct Etisalat

    The House of Representatives Thursday mandated its Committee on Telecommunications to conduct an investigation into reasons for the collapse of Etisalat Nigeria (now 9mobile).

    According to the lawmakers one of the reasons for the probe is to protect the Interests of Nigerian subscribers and other stakeholders:

    The resolution of the of the House was sequel to the adoption of the prayers of a motion by a member, Hon. Saheed Akinade-Fijabi

    The Lawmaker while arguing the motion noted that Etisalat Nigeria (now 9 mobile) commenced business in Nigeria in 2009 after acquiring the unified access license spectrum in the GSM 1800 and 900 MHZ bands from the Nigeria Communications Commission (NCC) in January 2007

    He said it thus became Nigeria s fourth largest telecommunications network operator with over 21 million subscribers and controlling about 12.9 per cent of the country’s telecom market share.

    He further states: “Etisalat Nigeria was formerly owned by three shareholders, namely Emirates Telecommunications Group Company (40 percent), Mubadala Development Company, Abu Dhabi (45 percent) and EMTS Holding BV (15 percent);

    “Aware that Etisalat Nigeria obtained a loan of $1.2 billion (377.4 billion Naira) in 2013 from thirteen (13) Nigerian banks which involved a foreign-backed guaranteed bond to finance a major network rehabilitation, upgrade and expansion of its operational base in Nigeria;

    “Etisalat Nigeria had so far paid about half of the initial loan amounting to about 504 billion Naira with total outstanding sum of about 574 miliion dollars but had reneged on its debt servicing obligations after the intervention of the Nigerian Communications Commission and the Central Bank of Nigeria to restructure the loan and new repayment deadline.”

    Fijabi expressed concern that the failure of Etisalat to meet its debt servicing obligations with the banks since 2016 resulted in its foreign major shareholders pulling out and eventual take-over of the company by the banks.

    He however said that the take-over of Etisalat Nigeria which was renamed 9mobile by the banks is a clear violation of Section 38 (1) of the Nigerian Communications Act, 2003

    According to him, the act  provides that “the grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub-licensed or transferred to any other party unless the prior written approval of the Commission has been granted”;

    When the motion was put to a vote by the Deputy Speaker, Yussuff Lasun, it was passed by a majority support of lawmakers and referred to the House committee on Telecommunications.

    The committee is to report back in eight weeks for further legislative action.

  • Foreign partners exit inconsequential to 9mobile, says CEO

    Foreign partners exit inconsequential to 9mobile, says CEO

    Telecoms company, 9mobile has reassured its customers and key stakeholders that the exit of its foreign partners would not affect the quality of its network or its ability to deliver excellent products and services.

    Emerging Markets Telecommunication Services (EMTS), which formerly traded as Etisalat Nigeria, is now 9mobile following the unveiling of a new brand identity last month in Lagos. The change of name and logo was as a result of the exit of its erstwhile partners, the Emirate Telecommunications Corporation and Mubadala Development Company, both of the United Arab Emirates.

    Its Chief Executive Officer, Boye Olusanya, reassured the over 20 million subscribers on the network, industry regulator, the Nigerian Communications Commission (NCC) and other stakeholders of the company’s continued commitment to the delivery of innovative and qualitative services. He added that the ongoing brand migration signified strong business continuity with the company’s vision, values and traditions of innovativeness and passion for excellence, still intact.

    Olusanya said the exit of the foreign partners and consequently, the change of its brand identity, have not in any way changed the company, noting that the Nigerian employees who led the company’s success in the past nine years were still with the company.

    He said: “The departure of any partner has absolutely no bearing on the quality of service that you will continue to get. The people that exist within the business today are the ones that offer that service, the same ones who have been resilient and dynamic to cope with the need for this change, who will also be the ones who will continue to offer you service. And, if they show the same dynamism that they have shown over the last few days, then the service will only get better.

    “There has been no loss of perspective in the business or loss in opportunity for the business, so there wasn’t a process that meant that we will be dependent on any of our partners. There is this idea that the departure of one of the partners will lead to problems within the business. No. As an operating entity, we are totally dependent on ourselves.”

    Olusanya assured subscribers further that the quality of voice and data service on the network has not been affected by the exit of the former partners and the name change as the company has continued to offer the services it offered in the past, only with different names.

    He added that data services would continue be at the forefront of 9mobile’s business, as the company continues to expand its 4G LTE network with the objective of delivering best quality of service across all platforms pan-Nigeria.

     

     

  • Etisalat: Nigeria remains the soul of EMTS business

    Etisalat: Nigeria remains the soul of EMTS business

    Emerging Markets Telecommunication Services Ltd. (EMTS) trading as Etisalat Nigeria on Tuesday informed its customers that the change of brand name will not affect its operations.

    Mr Ibrahim Dikko, the Vice President, Regulatory and Corporate Affairs, EMTS made this known in a statement.

    Dikko said that EMTS was aware of recent news reports regarding Etisalat Group’s withdrawal of the right to the continued use of the Etisalat brand in Nigeria by EMTS.

    He said that EMTS had a valid and subsisting agreement with the Etisalat Group.

    According to him, the agreement entitles EMTS to use the Etisalat brand notwithstanding the recent changes within the company.

    “Indeed, discussions are ongoing between EMTS and Etisalat Group pertaining to the continued use of the brand.

    “EMTS will issue a formal statement once discussions are concluded.

    “The final outcome on the use of the brand in no way affects the operations of the business as our full range of services remain available to our customers,’’ he said.

    Dikko said that EMTS launched in Nigeria in 2008 with “0809ja’’ to affirm the “Nigerianness’’ of its origin and sphere of influence.

    He said that in nine years of operation, the company remained a prime driver and avid supporter of the Nigerian spirit of excellence.

    According to him, the telecommunications company will continue to stay true to its “Naijacentric identity’’.

    “This notion is strongly reflected in our core messages and depicted in major projects and initiatives, which we have been known to support.

    “All these initiatives have their foundation embedded in supporting key aspects of the Nigerian fabric: building Nigerian businesses and empowering Nigerians with a focus on the youth.

    “Nigeria remains the soul of EMTS’ business and we have made the brand alluring to our teeming subscribers, who see a piece of the spirit and character of Nigeria in everything we do.

    “EMTS is here to stay and we wish to assure our esteemed customers that our core values of youthfulness, customer-centricity and innovation will remain the pillars on which we operate.

    “We thank our esteemed customers for their abiding faith in us,’’ Dikko said.

    The News Agency of Nigeria (NAN) reports since the month of March, Etisalat Group has been having the issues with the consortium of 13 banks over the payment 1.2 billion dollar loan.

    The group had on Monday given Etisalat Nigeria three weeks ultimatum to stop the usage of its brand name.

     

  • Etisalat quits Nigeria, gives three-week ultimatum for brand phase out

    Etisalat quits Nigeria, gives three-week ultimatum for brand phase out

    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 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.’’

     

  • CBN deputy governor leads Etisalat’s new board

    CBN deputy governor leads Etisalat’s new board

    A Deputy Governor of the Central Bank of Nigeria (CBN) Dr. Joseph Nnanna was Tuesday appointed Chairman, Etisalat Nigeria’s new board of directors.

    The constitution of the board, which was jointly brokered by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), marked the end of a long drawn battle between the telco and a consortium of 13 local lenders over breach of repayment terms of $1.2billion loan raised for the telco about five years ago.

    Also appointed Managing Director/CEO of the telco is Mr. Boye Olusanya, a former Deputy Chief Executive Officer and subsequently Acting Chief Executive Officer, Econet Wireless. When the telco metamorphosed to Celtel Nigeria Limited, Boye assumed the role of Deputy Chief Executive Officer and led the business strategy initiative for data services as well as key strategic operational changes in the business.

    Boye who replaces Mathew Wilshere, has handled high level responsibilities at Dangote Industries Limited where he served as Chief Business Transformation Officer responsible for management of all enterprise-wide projects in the Group. He was also MD at Dancom Technologies Limited with responsibility for managing all the telecom assets and the IT infrastructure. He oversaw the sale of the 3G subsidiary as well as managed the rollout of the fibre backbone network covering 4400km across the country.

    Unconfirmed sources said Wilshere will still stay around to contribute his wealth of experience to the stability of the telco. He is expected to be around till December this year when his contract with the telco would have elapsed.

    Appointed Executive Director, Finance, is Mrs. Funke Ighodaro. A former Chief Financial Officer of Tiger Brands Limited, she also held the position of Chief Financial Officer of Primedia (Pty) Ltd, and was Managing Director of a private equity firm, Kagiso Ventures Limited and Executive Director of its parent company, Kagiso Trust Investment Company.

    Funke who takes over from Mr. Olawole Obasunloye, also worked in the corporate finance division of Standard Corporate and Merchant Bank. She trained and qualified as a Chartered Accountant with PricewaterhouseCoopers in London, where she spent a total of 10 years in audit and tax. She is a Fellow of the Institute of Chartered Accountants in England and Wales.

    The National Senior Partner, KPMG Professional Services, Nigeria, Mr. Oluseyi Bickersteth, was appointed as Non-Executive Director of the board. In his capacity at KPMG, he oversaw KPMG West Africa Region and is a member of the Global Board and has provided advisory services to major companies in varied industries, including oil and gas, financial services, telecommunications, manufacturing, commercial, public sector and not for profit organisations.

    He has been extensively involved in privatisation activities and has provided tax and business advice to several local and international companies on privatisation, business organisation, entity restructuring and business regulatory issues.

    Seyi was a member of the Trade and Investment Committee of the Nigerian-American Chamber of Commerce; was a director of the Nigerian-South African Chamber of Commerce and currently a Director of the Nigerian Economic Summit Group. He was also involved in Vision 2010, which prepared a memorandum on the vision for Nigeria by year 2010. He chaired a working group on “Nigerian Tax Reforms 2003 & Beyond” for the Federal Government of Nigeria.

    Another Non-Executive Director of the board is Mr. Ken Igbokwe who joined Price Waterhouse in London in 1978 and moved to PwC Nigeria in 1988. He became the Country Business Executive Leader of PwC Nigeria and West Africa and was a member of the PwC Africa Executive Committee.

     

  • Loan repayment: Banks’ shareholders push for takeover of Etisalat

    Loan repayment: Banks’ shareholders push for takeover of Etisalat

    Some shareholder groups in the nation’s capital market on Tuesday urged Etisalat Nigeria to settle the N1.2 billion debt it owed 13 commercial banks to avoid a takeover.

    A cross section of the shareholder groups stated this in an interview with the News Agency of Nigeria (NAN) in Lagos on Tuesday.

    They insisted that the company must settle the debt for the banks to meet up with their dividend obligations.

    Mr Boniface Okezie, National Coordinator, Progressive Shareholders Association of Nigeria, called on Etisalat to settle the debt owed the commercial banks to avoid a legal action.

    Okezie said that the affected banks should approach the court for receivership if Etisalat failed to settle the debt.

    He stated that the banks had obligations to their shareholders in terms of dividend payment at the end of the financial year, insisting that the debt must be paid.

    Also, Mr Godwin Anono, the Chairman of Nigeria Professional Shareholders Association, said that the company should settle the debt and desist from making unnecessary noise about the whole thing.

    He said the transaction was in line with customer-bank relationship, noting that terms and conditions must be obeyed.

    Anono said further that the shareholders were in support of the banks to acquire the company if it failed to settle the loan.

    “This is like any other transaction, it’s not government business and I stand on existing protocol that the banks should acquire the company,’’ he said.

    In his view, Mr Sewa Wusu, Head Research, SCM Capital Ltd., said that the issue of loan between Etisalat and the consortium of banks was a customer-bank relationship which ought to be settled amicably with terms agreeable between both parties.

    He said that the issue was beginning to elicit concerns in the banking industry given the level of amount involved and its potential impact on the balance sheets of those banks involved.

    “But I think, the monetary authority is also involved to ensure prompt settlement of the situation among the parties,’’ he said.

    Etisalat, on June 20, said it had been instructed to transfer its 45 per cent stake in Etisalat Nigeria to a loan trustee.

    It said it had been notified to transfer its stake by June 23, saying that the stake had a carrying value of zero on its books.

    However, in the last few months, Etisalat Nigeria has been in talks with Nigerian banks to restructure a 1.2 billion-dollar loan after missing repayments.

    The loan is a seven-year facility agreed with 13 banks in 2013 to refinance a 650 million-dollar loan and fund expansion of its network.

    Although the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria stepped into the fray to prevent a takeover by the banks, those discussions failed to produce an agreement on restructuring the debt.

     

  • $1.2b Etisalat loan: CBN, NCC intervene to save jobs, asset stripping

    $1.2b Etisalat loan: CBN, NCC intervene to save jobs, asset stripping

    The Central Bank of Nigeria (CBN) and Nigerian Communications Commission (NCC) Friday intervened in the $1.2 billion controversial syndicated loan owed by Etisalat Nigeria to a consortium of 13 local banks.

    The regulators’ intervention was to save jobs of over 4,000 workers employed by Etisatat and prevent asset stripping.

    Confirming the intervention of the two regulators in the loan dispute, the CBN Spokesman, Isaac Okorafor said: “Although it should ordinarily not be the role of a regulator to decide how individual bad loans are resolved, the CBN believes that Etisalat is a systemically important telecommunications company with over 20 million subscribers that if not well handled, may have negative implications for the banking system itself.

    He further explained that the CBN and NCC, sensing that banks might go ahead in the usual way and downsize the company’s over 4,000 staff, reached an agreement to intervene and implore the consortium of banks to reassess its position in dealing with Etisalat.

    Okorafor described some media reports insinuating handwriting by CBN on the issue as “the height of mischief and insensitivity” explaining that the collaborative move by the regulators was aimed at preventing job losses and asset stripping and to ensure that Etisalat remains in business and is able to pay back the loans.

    According to him, the CBN and the NCC, in the coming days, will meet with the syndicate of banks and the IHS Towers, the tower managers and the equipment suppliers, in order to achieve what he termed “a win-win outcome” for all stakeholders.

    It will be recalled that Etisalat has been embroiled with a consortium of 13 Nigerian Banks that gave it a facility of about US$1.2 billion, on which the company has been unable to meet its repayment obligations in line with agreed terms of the facility.

    Given the inability of Etisalat to come to an acceptable agreement with the banks, the largest shareholder in the company, Dubai-based Mubadala Development Company of the United Arab Emirates, has now pulled out of the company as well as the ongoing negotiations, leaving only their local partners, led by Hakeem Belo-Osagie, to carry the burden.

    It was based on the attempt of the banks to take over the company that the financial and telecommunications regulators have moved in to intervene and forestall down-sizing and asset stripping.

  • $1.2bn loan: Banks deny Etisalat takeover

    $1.2bn loan: Banks deny Etisalat takeover

    Consortium of 13 banks involved in Etisalat Nigeria loan on Thursday refuted reports that they have taken over the operations of the company.

    A management source close to the banks who pleaded anonymity told the News Agency of Nigeria (NAN) in Lagos that there was no truth in the report making the round.

    The source said that the banks major interest was the loan repayment borrowed by the company and not takeover.

    “We are not telecommunication companies, all we want is our money,” he said.

    The source said that the company must pay back the loans in order not to jeopardise the economy, jobs, payment of dividends and depositors funds.

    He stated that it was not only the banks that would suffer but billions of Nigerians, even the vendors and distributors doing business with the company.

    “We did not take over Etisalat as being insinuated, if we have taken over, it has to be registered with the CAC.

    “They are still doing their business, they just want to weep up sentiment at the United Arab Emirates (UAE),” the source added.

    He added that the company had about 20 million subscribers, adding that any interruption would affect many businesses, especially SMES.

    According to the source, the affected Nigerian banks are owed about 570 million dollars out of the 1.2 billion dollars syndicated loan with the balance being owed vendors and distributors, among others.

    The source said that Etisalat wanted to pay only 10 per cent of the loan borrowed and requested that others should be written off as non-performing loan.

    He said that Etisalat wanted the consortium of banks to pay 50 million dollars out of 570 million dollars being owed, which the banks rejected.

    The source added that the banks practically reduced the debt to between 20 per cent and 30 per cent at a discounted interest rate of six per cent below the market rate which was rejected by Etisalat.

    “All we are requesting is for the Federal Government to wade into the issue and carry out due diligence on what the loan was used for.

    “A foreign company cannot come and ride us in Nigeria, if this issue is not handled carefully, others will do the same thing,” the source said.

    The source said that the company was avoiding negotiations which made the affected banks to fly to London earlier in the year to have a discussion with a company with its office in Nigeria.

    He said that the company was advised earlier before naira devaluation to convert the foreign loans to local currency due to fall in oil price at the global market, which it also rejected.

    UAE’s Etisalat had on June 20, said that it had been instructed to transfer its 45 per cent stake in Etisalat Nigeria to a loan trustee.

    Etisalat said it had been notified to transfer its stake by June 23. It said the stake had a carrying value of zero on its books.

    In the last few months, Etisalat Nigeria has been in talks with Nigerian banks to restructure a 1.2 billion dollars loan after missing repayments.

    The loan is a seven-year facility agreed with 13 banks in 2013 to refinance a 650 million dollars loan and fund expansion of the telco’s network.

    Although the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) stepped into the fray to prevent a takeover by the banks, those discussions failed to produce an agreement on restructuring the debt.

    NAN

  • Access Bank, others may take over Etisalat 

    Access Bank, others may take over Etisalat 

    Following the collapse of talks between Etisalat Nigeria and a consortium of local lenders over a $1.72 billion (about N541.8 billion) debt, the lenders may take over the telco as soon as the legal requirements are met.

    The eventual take-over is as a result of the futile effort by Emerging Markets Telecommunications Services (EMTS), promoted by-one time Chairman, United Bank for Africa, Hakeem Bello-Osagie, to reach agreement with the banks on the debt restructuring plan.

    However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 per cent of the telco’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

    Etisalat Group, the parent company of Etisalat Nigeria, gave indication to this Tuesday in a letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate (UAE).

    But Etisalat Nigeria Vice President, Regulatory & Corporate Affairs, Ibrahim Dikko said discussions are still ongoing. In a statement, he said: “Discussions are on-going regarding other issues such as the trading name during this transition phase. Operations and services to our subscribers remain normal and will in no way be affected as we continue to deliver quality services to our subscribers. We will continue to tap into the rich, creative and innovative resources within our workforce to build a stronger business upon the stable foundation we have laid in our nine years of operations.”

    The Nigerian Communications Commission (NCC) which, alongside the Central Bank of Nigeria (CBN) brokered truce between the telco and its lenders warned that the provisions of the Nigeria Communications Act must be followed stricto senso.

    Its Director, Public Affairs, Tony Ojobo, while assuring the over 21 million customers of the telco that the regulator will do its best to ensure seamless service delivery, warned that the take over of the telco must follow the letters of the law.

    Ojobo said: “In view of the recent development, NCC wishes to reassure all stakeholders in the telecoms sector in particular the subscribers on the Etisalat network that the Commission will ensure that the integrity of Etisalat network is not compromised.

    “Accordingly, the Commission has drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38:

    “Sub section 1 – The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;

    “Sub section 2 – A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.”

    A letter dated June 2017, with No. Ho/GCFO/152/85 endorsed by Etisalat Group Chief Financial Officer, Serkan Okandan, lamented that efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

    “Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, ‘Etisalat Group’ would like to inform you that EMTS (‘the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45 per cent and 25 per cent ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (EMTS lenders).

    “Subsequently, discussions between EMTS and the EMTS lenders did not produce an agreement on a debt restructuring plan.

    “Accordingly, the company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100 per cent of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.

    “Subsequently the EMTS lenders extend the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

    The telco has been under pressure since 2016, following the demand notice for the recovery of the loan facility it obtained from a consortium of banks in 2015.

    The loan, which involved a foreign-backed guaranty bond, was for the telco to finance a major network rehabilitation and expansion of its operational base in the country.

    Unable to meet its debt servicing obligations agreed last year, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

    But, the intervention of the Nigerian Communications Commission (NCC) and its financial sector counterpart, the Central Bank of Nigeria (CBN) succeeded in persuading the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

  • Etisalat Nigeria dispels rumor on takeover by Banks

    Etisalat Nigeria dispels rumor on takeover by Banks

    The Head of Public Relations, Etisalat Nigeria, Ms Oluseyi Osuntedo, on Thursday dispelled the rumor that banks had taken over the company.

    Osuntedo told the News Agency of Nigeria (NAN) in Lagos that talks were still ongoing between the banks and the company.

    She said that the company was not being picketed as rumored by some people, adding that whoever was giving the information was not telling the truth.

    “Discussions are going on; nobody is taking up the company.

    “It is not true that we are being picketed, whoever gave the information is not telling the truth,” she said.

    A NAN correspondent who visited the company’s Head Office at Banana Island also confirmed that the scenario at the office was calm and business going on as usual.

    NAN reports that Etisalat on March 8 was reported to have been taken over by three banks because of their alleged N541.8 billion debt.

    Despite the intervention of the Nigerian Communications Commission (NCC) to broker a peaceful resolution between Etisalat Nigeria and a consortium of banks, it appears the effort may not have yielded a truce.

    It said that the consortium of some foreign and Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank, have been having a running battle with the mobile telephone operator, over a loan facility totaling $1.72 billion (about N541.8 billion) obtained in 2015.

    NAN reports that the loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance major network rehabilitation and the expansion of its operational base in Nigeria.

    However, Etisalat failed to meet its debt servicing schedule, agreed since 2016, for which they were reported to the banking sector regulator, the Central Bank of Nigeria, and its communications sector counterpart, the NCC.

    Etisalat was said to have blamed its inability to fulfil its obligation to the banks on the current economic recession in Nigeria.

    The banks said their attempt to recover the loan by all means, was fueled by the pressure from the Asset Management Company of Nigeria (AMCON), demanding an immediate cut down on the rate of their non-performing loans.
    .
    NAN also reports that NCC appears not to be favorably disposed to the takeover proposal, as it believed that Etisalat is not only a viable going concern, but also willing and able to negotiate the servicing of its loans.

    Etisalat is Nigeria’s fourth largest telecoms operator, with about 21 million subscribers as at January 2017, according to the NCC.

    The company commenced business in Nigeria in 2009.