Etisalat Set To End Operation In Nigeria In Three weeks

A shocking news reaching us says that Abu Dhabi owned telecommunications networks Etisalat international has given Etisalat Nigeria, three weeks to end operating in the brand's name here in Nigeria. The new development came after the company's failure in  its $1.7 billion loan talks. Hatem Dowidar the company's international Chief executive told Reuters that the brand is no longer needed as a result of the failed talk between it and the NCC over the renegotiate a $1.2 billion loan.

On Monday, the company announced that its UAE shareholders has pulled out of the company leaving just the Nigerian board. However, it is given the brand another three-weeks before completely phasing it out.

The company three weeks ago in a statement released claimed to have paid 42 per cent of the loan, it holds to the banks. According to Ibrahim Dikko, vice-president, Regulatory & Corporate Affairs of Etisalat Nigeria said
“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,”
There are speculations that another telecom company, may buy the company over. This was made known by the company's boss who said, the company might either exit the country or merge with a local rival. With the present decision stating that its plan to exit the country, the only option leave now is a buy over by another rival company.

No comments