Why we intervened in Etisalat $1.2bn debt crisis- FG

The Federal Government on Tuesday, said it intervened in the Etisalat $1.2bn debt crisis to sustain the significant contribution of the operator to National GDP, employment and infrastructure.

In a statement Tony Ojobo, Director, Public Affairs at the Nigerian Communications Commission (NCC) confirmed 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 statement came shortly after Etisalat Nigeria confirmed it has appointed a new board, led by the central bank’s deputy governor Joseph Nnanna as chairman, after regulators stepped in to save the company from collapse.

Also appointed as part of the transition were Boye Olusanya who serves as the chief executive and Funke Ighodaro as chief financial officer.

Ojobo expressed the NCC confidence 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 commended the role of the Central Bank of Nigeria, CBN,  in resolving the matter in a manner that protects the interests of all stakeholders – especially the creditor banks and Etisalat’s over 20million customers.

‎It would be recalled that on March 8, a consortium of banks tried to take over Etisalat, because of its N541.8 billion debt. These included foreign and Nigerian banks,  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 dollars (about N541.8 billion) obtained in 2015.

This led to the resignation of Etisalat Nigeria Chairman Hakeem Belo-Osagie on Monday.‎