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Tag: Etisalat

  • Etisalat’s exit

    Etisalat’s exit

    •A sorry tale of bad luck, poor management and weak regulation

    The travails of the telecommunications firm formerly known as Etisalat Nigeria is a cautionary tale replete with harsh lessons about the Nigerian business and regulatory environment that must be taken to heart by any company hoping to attain its corporate and financial goals.

    Now 9Mobile, the beleaguered telco’s difficulties first came to light when its inability to continue servicing loans totalling U.S. $1.2 billion which it took in 2013 was reported to the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) by a consortium of Nigerian and foreign banks.

    Repeated failures to adhere to agreed repayment schedules caused the banks to initiate take-over procedures, a move which caused the majority stakeholders, Mubadala Development Company of the United Arab Emirates, to withdraw its shareholding in June. The NCC has objected to the banks’ acquisition moves, claiming that extant laws do not permit telecommunications licenses to be acquired by third parties without the commission’s permission.

    It has been argued that the former Etisalat was wrong-footed by the naira’s fall in value relative to the major international currencies, especially when the currency peg which kept it at the artificially high rate of N198 to $1 was scrapped in June 2016. With exchange rates falling to N498 to the dollar in January 2017, the cost of servicing the dollar-denominated portion of the loans definitely rose steeply. It is no coincidence that the company’s troubles began at precisely the time when exchange rates were at their highest.

    In spite of this, however, it should not be forgotten that in contracting the loans, the former Etisalat had taken a hard-headed business decision. It was financing a major network rehabilitation, in addition to upgrading and expanding its operational base in the country. In other words, it was seeking to become more profitable.

    Given these fundamentals, the question must be asked if the company’s rehabilitation and expansion plans actually resulted in increased revenues. If they did, why were the banks not prepared to take a long-term view of the company’s prospects? The company had reportedly paid back some N504 billion, representing nearly half of the loan. Why were its creditors suddenly so sure that the only viable option left to them was to mount a takeover of the company?

    A possible answer may be found in the quality of the company’s management. In spite of its costly upgrades, the former Etisalat was losing subscribers rather than increasing them. Between September 2016 and December 2016, the company’s subscriber base fell from 22.5 million to 20.8 million. In the first three months of 2017, another 1.2 million subscribers left the network. This took place at a time when two of the other three telecommunications companies were recording increased subscription, and the third witnessed only marginal declines.

    This implies that the network expansion and upgrades failed to achieve their stated aim. It is a failure that cannot be attributed to the lack of funds, since the company had gotten its loans; it must be laid at the doorstep of management. An ambitious expansion metastasized into a crippling shrinkage, thereby setting off a chain of setbacks that ultimately resulted in the emergence of 9Mobile.

    If a similar situation is to be avoided, the NCC must institute a comprehensive investigation into how things went so badly wrong at the former Etisalat. It must seek to understand the extent to which incapacity, corruption and incompetence featured in this debacle, if at all. The commission must also re-examine provisions of the Nigerian Communications Act (NCA) to resolve the anomalies that inevitably arise when creditors require NCC permission to take-over telcos that are heavily indebted to them.

    As 9Mobile rises from the ashes of Etisalat Nigeria, it is to be sincerely hoped that they succeed where their predecessors failed.

  • Etisalat Nigeria rebrands to 9Mobile

    Etisalat Nigeria rebrands to 9Mobile

    • NCC: we’ve not been notified

    Etisalat Nigeria is changing its brand name to 9Mobile, it was gathered yesterday.

    The Chief Executive, Etisalat International, Hatem Dowidar, had announced a programme of phase out of the brand in the country after the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) failed to settle the fracas that attended the inability of Etisalat to continue payment of the $1.2billion facility drawn from 13 local lenders failed.

    Etisalat blamed its failure on economic recession and government policies that increased the mortality rate of businesses in the country.

    But the NCC said it is yet to receive any formal request for name change from the telco. Its Director, Public Affairs, Mr Tony Ojobo, said the regulator has not received any notification from Etisalat, adding that it may have been an internal arrangement by the new board and management of the telco to beat the three-week deadline given to the telco by its parent company.

    “I think it is an internal arrangement by the management to adopt a name and when they agree, they will notify the Commission. What is important is the structure of the shareholding in the telco not necessarily the name,” he said in a telephone interview yesterday.

    According to him, there are so many telecoms companies bearing different names without having any spectrum. He said what is important is the operating licence of the telco and not the name it adopts.

    Calls to Etisalat Nigeria Vice President, Regulatory & Corporate Affairs, Ibrahim Dikko were not picked while a text message to his mobile number failed to elicit any response.

    Earlier, Etisalat, with a 45 per cent stake in the Nigerian business, had been ordered to transfer its shares to a loan trustee after the talks failed.

    Mr. Dowidar had said all UAE shareholders of Etisalat Nigeria, including state-owned investment fund Mubadala, had exited the company and left the board and management.

    He said discussions were ongoing with Etisalat Nigeria to provide technical support, adding that it could continue to use the brand for another three weeks before phasing it out.

    “There’s a new board and we are not part of that company. We have sent our termination letter for the management agreement,” the Etisalat chief had said.

    On July 4, a new board was appointed for Etisalat Nigeria by the CBN, NCC and the lenders, to handle the smooth transition of the telco after a reallocation of shares.

    A former deputy Managing Director, Celtel Nigeria (now Airtel Nigeria), Boye Olusanya, was appointed as the chief executive officer of Etisalat Nigeria to replace Mathiew Willsher. Dr. Jpseph Nnanna, a Deputy Governor (Financial System Stability) at CBN was appointed the chair of the board.

    NCC has warned the lenders that the licence awarded to Etisalat Nigeria, with 21million customers already, is not transferable to stop the banks from taking ownership of the company.

  • Etisalat Nigeria now 9Mobile

    Etisalat Nigeria now 9Mobile

    Embattled telco, Etisalat Nigeria is set to change its brand name to 9Mobile.

    Its parent company on the United Arab Emirates,  Mubadala Group, pulled out of the telco due to collapse of talks over $1.2billion loan advanced to the telco by a consortium of 13 local lennders.

    A new board was midwifed by the Nigeria Communications Commission (NCC), the Central Bank of Nigeria (CBN) and the affected banks.

    The board is expected to supervise a transition of the telco which has over 21million customers in the country.

    A former deputy managing director of Celtel Nigeria (now Airtel Nigeria), Boye Olusanya, was appointed as the chief executive officer of Etisalat Nigeria to oversee the transition.

    The board is headed by Dr. Joseph Nnanna, a Deputy Governor (Financial System Stability) at the CBN.

    Calls to Director, Public Affairs at NCC, Tony Ojobo and Vice President, Corporate and Regulatory Affairs at Etisalat were not picked.

    Details coming….

  • The Etisalat debt debacle

    The surreal tale surrounding a $1.2 billion (about N541billion) loan given to a foreign-owned private company by a consortium of 13 Nigerian banks is staggering.

    The syndicated loan was given to Etisalat Nigeria in which Emirate Telecommunications Group Company (Etisalat Group) of United Arab Emirate (UAE) has the controlling shares of 45 per cent; followed by Mubadala Development Company also of UAE, which has 40 per cent; and a third firm, which represents the entire Nigerian shareholders and has only15 per cent. Etisalat Group secured the seven-year facility some time in 2013 to refinance a $650 million loan and fund the network expansion of its outpost, Etisalat Nigeria. Like others before it, the contractual relationship has gone awry and the N541 billion debt has become a subject of controversy.

    Following its inability to repay since 2016 and the failure of restructuring talks, the Abu Dhabi-based parent company of Etisalat Nigeria cleverly latched on takeover threats by the lender banks to repudiate its legal obligations. It promptly transferred its 45 per cent stake and 25 per cent preferential shares to a loan trustee. To make it more insulting, the foreign firm declared that it has no further obligations under the contract as its stake now has a zero value in its books. All seven directors of Etisalat Nigeria – the six representing Etisalat Group and Mubadala, all UAE nationals; as well as the chairman, Hakeem Belo-Osagie – have resigned.  An orphaned Etisalat Nigeria is now making frantic efforts to have the loan written off as non-performing.

    The question which this sordid transaction raises is: should our banks be subsidising the so-called foreign investors with depositor’s money? And what benefit accrues to the nation from such economic decisions? This is more so as the mission of these foreign firms is not social service but to make profits which get repatriated to their home countries soon after. At the end of the day, their economies receive a boost, ours shrinks.  Their local currencies get further strengthened against the Naira, and Nigeria continues to lose respect among the comity of nations.

    A N541billion credit for a foreign company is by all standards outrageous; particularly in an ailing economy like ours. That the transaction has become controversial is calamitous. It reflects the poor business decisions that have helped to crumble our economy and plunge the nation into recession. The broad consequences of this debacle are far reaching. Among these are its negative impact on the balance sheet of the affected banks, the bleak prospects of dividends to shareholders, and the uncertain future of the employees of the banks. Of course, the worst hit in event of bank failures are those who took their monies to these financial institutions for safe keeping.

    Granted that banks are into the business of lending funds, but should they not devote depositors’ money to grow local firms?  Several industries owned by our country men and women are in crying need of finances but no financial institution in Nigeria looks their way.  Workers in these local firms are being retrenched daily in the face of recession inflicted on the country by such poor business decisions. Indeed, many local companies have closed shop for want of funds, further worsening our situation as an import-dependent nation with the attendant negative impact on economic indices.

    For failing to properly weigh the costs and benefits of this decision, the lending banks and the arrangers have now found themselves in a deep mess. They have realised they have been taken for an unpleasant ride. And that Etisalat Nigeria merely served as a conduit for the foreign firm to skim off depositors’ money as there is no proof that the fund was applied to the desired end. The banks are said to be seeking to enlist the support of the Economic and Financial Crimes Commission (EFCC) rather than considering how to get the International Police (Interpol) to investigate the trans-national crime. The Central Bank of Nigeria (CBN) also shares in the blame for failing to detect this rot early enough and nip it in the bud.

    Also difficult to fathom is, whether or not the loan to Etisalat Group was guaranteed. The lender banks should have insisted that such a huge credit be guaranteed by the government of UAE or that of Abu Dhabi State given their interests in the controversial firms. The UAE government owns 60 per cent of the shares of Etisalat Group while the rest were publicly traded.  Mubadala Development Company is an investment company of the Abu Dhabi State government. It is surprising that leaders of both UAE and Abu Dhabi State have done nothing to stop the management of these companies from defrauding Nigeria

    Our kith and kin out there in UAE are treated no better than criminals. They neither can own nor operate bank accounts following government’s fiat, let alone secure a bilateral loan. The excuse for precluding Nigerians from operating bank accounts there is the activities of a few unscrupulous elements.  But here, we literally shut down our banks to fund just one UAE company run by those that lack respect for a contract which they voluntarily entered. The N541 billion credit extended to Etisalat Group can set up well over 20 banks in Nigeria. The capital base of banks in Nigeria is still N25 billion.

    The Etisalat debt saga is only a microcosm of how foreign investors rip our nation off and leave our economy in distress. Rather than bring in the much sought after Foreign Direct Invest (FDI) to shore up the economy, the so-called foreign investors come with the intention of defrauding the country and exploiting its populace. They all arrive on the Nigerian scene with empty suitcases. Then, with the aid of a Nigerian arranger, who has a personal stake; they go cap in hand to our local banks asking for depositors’ money, which they readily get.

    The local deposit banks will hurriedly pool resources together to meet their outrageous demands as in the case of Etisalat. More often than not, the credit advanced to the foreign firms disappears without a trace. When the fund is applied here, the populace is exploited and the proceeds repatriated to the various home countries of the foreign investors.

    Indeed, this incident portrays the disservice the Nigerian financial institutions and CBN are doing to the country. These institutions have a penchant for turning foreign firms that are worth nothing in their respective countries into instant successes as soon as they step onto Nigerian soil using depositors’ funds. And with the billions of Naira or Dollars secured from the banks, juicy and inflated contracts get awarded to them by corrupt public officials entrusted with public procurements.

    Those dubbed celebrities fall over themselves to act as their ‘ambassadors’ or whatever they call them. The mass media will follow up and brand the companies ‘giants’. Most of the so-called telecoms giants, construction giants, and what have you were all pigmies before arriving here. They achieved greatness through local deposit banks and contracts in which due process is circumvented.  In turn, these foreign companies reward Nigeria by enslaving her people. Their contribution as corporate citizens of Nigeria does not go beyond turning the country into a nation of dancers, singers, and clowns through all manner of reality shows targeted at youths, who represent the future of our country.

    There is absolutely no reason those involved in this latest show of shame should not be arrested and tried for economic sabotage. The board and management of the 13 financial institutions as well as the arranger of the N541 billion credit   should be clamped into detention. In civilised societies, such characters will not be walking about as free men. They certainly will be in detention waiting to face the highest penalties for financial crime in the land.

    It is time Nigerian banking laws are strengthened to bring intellectual resources to bear in the management of these institutions. The credentials of those aspiring to run our banks or head certain departments of banks including Treasury, Foreign Exchange, Risk Management and Legal must meet internationally accepted standards to reverse the negative consequences of their decision on our economy. Otherwise, we will continue to grow other economies at our own peril.

     

    • Dr Nnadi, a former editor wrote from Owerri, Imo State.
  • Etisalat: New CEO eyes profit

    Etisalat: New CEO eyes profit

    • NCC: crisis took us by surprise

    Etisalat Nigeria is focused on getting the telecoms group back on track to make a profit after it was saved from collapse, while working on the paperwork to eventually raise new capital.

    “Our mandate is to make sure the business runs as profitably as it can. What is most important now is to ensure that the business runs and meets its obligations,” the company’s new chief executive Boye Olusanya told Reuters yesterday.

    Nigerian regulators intervened last week to save Etisalat Nigeria after talks with its lenders to renegotiate a $1.2 billion loan from 2013 with 13 local lenders failed.

    Meanwhile, the Nigerian Communications Commission (NCC) yesterday said it never anticipated the challenges thrusted upon the telecom sector this year, particularly the indebtedness of Etisalat Nigeria to a consortium of banks to the tune of $1.2 billion.

    The Commission however, said the problem was being managed by concerned regulatory bodies in such a way that Etisalat’s 21 million customers would continue to enjoy its services, while not a single worker would be fired in the company as a result of the crisis.

    The Executive Vice Chairman/CEO of the NCC, Prof Garnba Damabtta spoke during the opening ceremony of the 80 edition of Telecom Consumer Parliament (TCP) at the Shehu Musa Yar’adua Centre, Abuja, said while the forum was to find answers to various issues agitating the minds of the consumer, the regulatory body has been consistent in its resolve to protect the rights of the consumer in line with international best practices and standards.

    Etisalat Nigeria has 20 million subscribers, making it the country’s number four mobile operator with a 14 per cent market share. South Africa’s MTN has 47 per cent, Glo 20 per cent and Airtel – a subsidiary of India’s Bharti Airtel – 19 per cent.

    “Once we’ve got ourselves to where certain decisions are made and the structure and form of the business is formed then maybe we would look at a capital raising structure that would be suitable for the nature of how the business will be run,” he said.

    Olusanya, who took over as CEO of Etisalat Nigeria following the appointment of a new board led by Nigeria’s central bank, said while the business could run without an immediate recapitalisation, he would not rule one out completely.

    “Obviously if it’s possible to do it tomorrow, we will do it, because that enhances the ability of this business to roll-out quickly, to get more subscribers, which is what everybody wants,” he added.

    UAE’s Etisalat, which had a 45 per cent stake in the Nigerian business, has said its exposure to Etisalat Nigeria related to services worth 191 million UAE dirhams ($52 million).

    In June, Etisalat said it had been ordered to transfer its shares to a loan trustee after debt talks failed.

    “We’re still in negotiations with Etisalat over the use of the brand name,” Olusanya said, adding that the technical service agreement with Etisalat covered the brand name but the telecoms company was run by Nigerians.

    The former Celtel executive said he has plans in place to rename the company if needed after UAE’s Etisalat said it had terminated a management agreement and given its one-time Nigerian business time to phase out the brand.

    All UAE shareholders in Etisalat Nigeria, including state-owned investment fund Mubadala, had exited the company and left the board and management, Hatem Dowidar, CEO of Etisalat International, told Reuters.

  • Metamorphosis of Etisalat

    Metamorphosis of Etisalat

    The collapse of negotiations between Etisalat and its consortium of bankers over  a $1.2 billion loan got to its climax with Emerging Markets Telecommunication Services Ltd (EMTS), trading as Etisalat Nigeria, getting a three-week ultimatum to drop the brand name. Assistant Editor LUCAS AJANAKU writes that the telco may be on the path of rebranding.

    WHEN the 0809ja was launched in Nigeria in 2008, its promoter EMTS said it was to affirm the Nigerianness of its origin and sphere of influence. Trading as Etisalat Nigeria, it said in its nine years of operation that it has remained a prime driver and avid supporter of the Nigerian spirit of excellence.

    Its Vice President (Regulatory & Corporate Affairs), Ibrahim Dikko said the telco will continue to maintain the “Naijacentric identity”, adding that this notion has been strongly reflected in the company’s core messages and depicted in major projects and initiatives which it has been known to support.

    Dikko said: “All these initiatives have their foundation embedded in supporting key aspects of the Nigerian fabric: building Nigerian businesses and empowering Nigerian’s 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.”

    But, all the noble values which the telco so much cherished may have been eroded by EMTS’ threat to withdraw its trading name from the current board midwifed by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN).

    The board is headed by Dr. Joseph Nnanna, a Deputy Governor (Financial System Stability) at the CBN.

    If EMTS makes good its threat to withdraw its trading name, then the telecom sector may witness another round of rebranding.

    The present day Airtel began operation in Nigeria as Econet Nigeria, a brand many believed came from Zimbabwe.

    But, Econet soon faded away and Vodacom, South Africa’s second largest telecoms brand stepped in.  Vodacom was like a flash in the pan before Bharti Airtel Limited, an Indian global telecoms services provider based in New Delhi, India. Airtel operates in 18 countries across South Asia and Africa.

     

    Stakeholders react

    Subscribers’ umbrella body, the National Association of Telecoms Subscribers of Nigeria (ATCON), has assured its members not to panic but remain faithful to the Etisalat brand. According to it, what the telco is passing through is a phase in the evolution of a potential great brand.

    Its President, Deolu Ogunbanjo, who lamented that the fortune of the telco had been mismanaged somehow, said the new management constituted under the leadership of Prof Garba Dambatta of the NCC and his counterpart in at the CBN, Godwin Emefiele, should be given time to put the business on a sound footing again.

    He, however, counselled the new board and management to put on their thinking caps as they have lots of work to do. He urged members of the new team to gird their loins preparatory to rebranding.

    Ogubanjo said: “Etisalat is a brand that warmed its way into the hearts of Nigerians, especially the youth segment. The subscribers should not panic at all. They should not allow Etisalat to go down because it has deepened competition.”

    According to him, the damage from the inevitable rebranding may do to the telco may be inconsequential, recalling that Airtel rebranded about five times before it stabilised.

    He urged the new management to imbibe the principles of corporate governance, the absence of which was the undoing of the former managers.

    The Association of Telecoms Companies of Nigeria (ATCON) said the development will put more pressure on the new management to find an immediate buyer for the company, as EMTS has no recognisable brand name in the industry.

    Its President, Olusola Teniola, noted that the Etisalat brand was associated with the youth segment of the market and “it appears that there is urgent need to ensure that the services and products that EMTS delivers can replicate that unique experience!”

    Teniola went on: “The Etisalat brand name holds significant intangible assets to EMTS and this allowed the current subscriber base to hold faith with the international experience and good will that the Emirates brought to Nigeria.

    “It would be best for the new management to learn from lessons already learnt from the various name changes that EcoNet went through to get to Airtel and ATCON seeks minimum impact on the subscribers if those lessons come to bear during this difficult period of transition for the company EMTS and the stakeholders in the industry, most especially the consumers.

    “Proactive effective messaging from EMTS is key to the success of any brand name change and to remove the uncertainty that surrounds any identify change. From Customer Care right through to technical support, it is important that infrastructure that supports the company is reliably run and in place to cope with the deluge of calls requesting information on ‘what next’ for the subscribers. Remember the ‘Customer is King’ in this situation.”

    Teniola, who is the former Chief Executive Officer of IS Internet Services and now a Client Partner for Detecon International, a subsidiary of Deutsch Telekom Group, Germany, reacted through an email sent to The Nation yesterday.

    He said that his association had foreseen and predicted the development, warning other carriers to learn one or two lessosns.

    Teniola said: “We in ATCON predicted this outcome and need to see the precedent that this sets for the rest of the industry, in particular in the way and manner funds are used to deploy capital intensive infrastructure.

    “The relationship with the banks and our members needs to reflect the current reality in this harsh business environment and it is best for all stakeholders to work together to find a permanent solution to the ‘funding gap’ that exists in the manner and way the industry attracts FDI or utilizes debt to realise its ambition.”

  • Etisalat assures of continuity, quality service

    Etisalat assures of continuity, quality service

    Emerging Markets Telecommunication Services Limited (EMTS), trading as Etisalat Nigeria on Tuesday assured its customers and other stakeholders that Etisalat Group’s reported withdrawal of the right to continued usage of the Etisalat brand in Nigeria by EMTS does not in any way imply discontinuation of its business in the country.

    A statement signed by EMTS Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko, said contrary to reports in the media about the closure of the company’s experience centres and outlet offices, all centres and outlets across Nigeria are in full operation and providing services including customer care services.

    The statement reads: “Etisalat Nigeria also reiterates its unwavering commitment to delivery of quality services and commitment to continuously empowering all segments of Nigeria through the development and roll-out of innovative products, services and solutions that help individuals, businesses and organisations solve their everyday problems.

    “Whilst we are intensifying efforts aimed at reaching full closure on ongoing discussions with regards the transition phase, we want to assure that our customers and stakeholders will be duly informed as soon as these are concluded, including  details of a rebranding should that become necessary. We thank all our customers, stakeholders and the media for their unalloyed support to the company.”

  • Etisalat to quit Nigeria

    Etisalat to quit Nigeria

    •Management pact terminated

    Telecoms giant Etisalat International has withdrawn from Nigeria, its Chief Executive Officer (CEO) Hatem Dowidar said yesterday.

    The withdrawal may not be unconnected with Etisalat Nigeria’s indebtedness to a consortium of banks.

    The firm has terminated its management agreement with its Nigerian subsidiary, Dowidar said.

    Etisalat Nigeria has three weeks to stop using the brand name.

    Last week, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) intervened to save Etisalat Nigeria from collapse after talks with its bankers to renegotiate a $1.2 billion loan failed.

    Etisalat, with a 45 percent stake in the Nigerian business, said last month that it had been ordered to transfer its shares to a loan trustee after the failed talks.

    Dowidar said all United Arab Emirates (UAE) shareholders of Etisalat Nigeria, including state-owned investment fund Mubadala, had left the company.

    He said in an interview with Reuters that talks were ongoing with Etisalat Nigeria on technical support, adding that it could continue to use the brand for another three weeks before phasing it out.

    “There’s a new board and we are not part of that company. We have sent our termination letter for the management agreement,” he told Reuters.

    Etisalat Nigeria is the biggest foreign-owned victim of the foreign exchange (forex) caused by lower oil prices and recession.

    The telco took a $1.2 billion loan with 13 local lenders in 2013 to refinance an existing loan and fund expansion, but struggling to repay four years later.

    Dowidar said Etisalat International had written down the value of the telco on its books, adding that transferring its 45 per cent stake to the lenders after loan renegotiation talks failed had no impact on the group.

    Asked whether Etisalat would consider entering Nigeria again, Dowidar said: “The train has left the station on that one. Being in that market as an investor … are we willing to risk more money compared to the reward for the long-term?”

    The CEO said Etisalat had been unsuccessful at converting some of its dollar debt to the  Nigerian currency. He also said the group might exit or merge with a local rival in markets where it was not one of the top two players. He did not specify which markets.

    Etisalat is among the top two in markets such as the UAE, Saudi Arabia, Morocco, Egypt and Afghanistan, he said.

    “(Nigerian) lenders may try to continue to operate the company until they find a buyer (or) they may merge the company with the existing players in Nigeria, he said, adding that it was tough to say what lenders would do.

    “The brand agreement in either of these two scenarios won’t be a long-term thing, so we take out the brand; in the long term Etisalat won’t be in Nigeria.”

    But Emerging Markets Telecommunication Services Ltd. (EMTS), trading as Etisalat Nigeria, yesterday said it is aware of reports regarding Etisalat Group’s withdrawal of the right to the continued use of the Etisalat brand in Nigeria by EMTS.

    Its Vice President (Regulatory and Corporate Affairs), Ibrahim Dikko, in a statement, said EMTS had a valid and subsisting agreement with the Etisalat Group, which entitles EMTS to use the Etisalat brand, notwithstanding the recent changes within the company.

    The statement said: “Indeed, discussions are ongoing between EMTS and Etisalat Group pertaining to the continued use of the brand, and 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.”

    “EMTS launched its opration in Nigeria in 2008 with “0809ja” to affirm the “Nigerianness” of our origin and sphere of influence.

    “In our nine years of operation, we have remained a prime driver and avid supporter of the Nigerian spirit of excellence, and we will continue to stay true to our “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 Nigerian’s 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.”

     

  • $1.2b Etisalat debt: Why NCC intervened, by board chair

    $1.2b Etisalat debt: Why NCC intervened, by board chair

    The Chairman, Board of the Nigerian Communications Commission (NCC), Senator Olabiyi Durojaiye, has said the board intervened in the $1.2billion Etisalat loan face-off with 13 local lenders in order to ensure continuous provision od services to the over 21 million subscribers of the telco.

    He added that the intervention became imperative too to safeguard its over 4,000 employees, and stabilise the telecom sector to ensure its contribution to nation’s gross domestic product (GDP) is not impacted while investment continues to thrive.

    According to a statement endorsed by its Director, Public Affairs, Tony Ojobo, the emergency meeting, which was presided over by the board chairman,  was  to review the Etisalat issue in its entirety and also review the intervention made by the NCC management.

    The board commended the NCC management for its handling of the Etisalat issue.

    The board commended the cooperation and inter-agency collaboration exhibited by the Central Bank of Nigeria (CBN), the regulator of the financial sector.

    The board directed the management of carriers to ensure at all times that telcos meet the financial and technical integrity standards expected of them.

  • Etisalat, banks agree on payment terms

    Etisalat, banks agree on payment terms

    •CBN chief is chairman
    •NCC: smooth transition on

    Troubled mobile operator Etisalat Nigeria has got a new chairman. He is Central Bank of Nigeria (CBN) Deputy Governor Dr. Joseph Nnanna.

    In a statement, the firm also announced Mr Boye Olusanya, a former Deputy Managing Director of Celtel Nigeria (now Airtel Nigeria) as its Chief Executive Officer (CEO).

    Other board members were listed after a deal between the firm and the consortium of 13 banks that lent the company $1.2b about five years ago.

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

    Olusanya, who replaces Mathew Wilshere, 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 the CEO at Dancom Technologies Limited with responsibility for managing all the telecom assets and the IT infrastructure.

    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 when his contract expires.

    The 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.

    The National Senior Partner, KPMG Professional Services, Nigeria, Mr. Oluseyi Bickersteth, was appointed as Non-Executive Director of the board.

    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.

    In a statement yesterday, The Nigerian Communications Commission (NCC)  said all the parties involved in the dispute over Etisalat’s indebtedness had come to terms.

    This, it said, is to save the company, prevent assets stripping and the jobs of over 4,000 workers.

    The NCC’s statement by its Director of Public Affairs, Tony Ojobo, announced that “a smooth transitional process is currently ongoing on mutually agreed terms”.

    Though the NCC did not disclose the terms of the agreement, it assured Etisalat’s 20 million subscribers of the integrity of its network across the country.

    The statement said: “Following our Press Release of June 20, 2017 on the above, and in response to stakeholder enquiries regarding the current position on Etisalat Nigeria, the Nigerian Communications Commission (NCC) wishes to state as follows:

    “The Commission is pleased to note that Etisalat and its creditors have successfully reached an amicable resolution of key issues pertaining to its indebtedness, and that a smooth transitional process is currently ongoing on mutually agreed terms.

    “The Commission is confident that the amicable resolutions reached by the parties will further strengthen Etisalat’s capacity to continue to provide services to its over 20million customers and to fulfil its obligations to its other stakeholders as a going concern, regardless of any changes that the parties have agreed to Etisalat’s Ownership, its Board and/or its Executive Management.

    “We further wish to assure that as empowered by the Nigerian Communications Act 2003, the Commission will continue to work assiduously with all industry stakeholders to ensure that the Nigerian telecommunications industry remains capable of playing its critical role as a key driver of national socio-economic development. NCC is mindful of the need to sustain the industry’s significant contribution to National GDP, employment and infrastructure roll-out at all times. The Commission’s intervention in the matter was informed by these considerations, and we are pleased at the success of the ongoing process.

    “The Commission also wishes to acknowledge the pivotal role of the Central Bank of Nigeria in resolving the matter in a manner that protects the interests of all stakeholders – especially the creditor banks and Etisalat’s over 20million customers”.