NCC calms subscribers as Etisalat enters final transition phase

By Odunewu Segun

The Nigerian Communications Commission (NCC) has reassured the 21 million subscribers of the distressed Etisalat Nigeria of continued service integrity as its creditors seeks the services of a technically competent investor to take over the management of the company, National Daily has gathered.

A statement by NCC Director, Public Affairs, Tony Ojobo, followed the announcement by Etisalat Group, the parent company of Etisalat Nigeria, that efforts by Emerging Markets Telecommunication Services Limited, EMTS, the remaining shareholder in the telecom firm, to negotiate the loan owed the banks collapsed without an agreement.

“In view of the recent development, NCC wishes to reassure all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised.”

Mr. Ojobo drew the attention of the consortium of banks involved in the planned takeover of the terms and conditions that guided the award of an operational license to Etisalat Nigeria.

The terms and conditions contained in the provisions of the Nigerian Communications Act (NCA) 2003 Section 38 states as follows:

“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 conditions of the license and the provision of this Act and its subsidiary legislation.”

Etisalat Nigeria, Nigeria’s fourth largest telecom operator, ran into trouble with the consortium of banks, led by Access Bank PLC, following its failure to meet its obligations in respect of a $1.72 billion (about N541.8 billion) loan facility it obtained in 2015.

ALSO SEE: Creditors take over Etisalat

The loan, which involved a foreign-backed guarantee bond, was for the mobile telephone operator to finance a major network rehabilitation and expansion of its operational base in Nigeria.

After the repayment of the loan failed in 2016, the consortium, prodded by their foreign partners, threatened to take over the company and its asset across Nigeria.

The intervention of the NCC and the CBN persuaded the banks to give Etisalat a chance to renegotiate the loan repayment schedule. But, the company also reneged on the pledge to pay up by May 31, resulting in a final default note and enforcement notice issued on June 9, 2017.

Following the announcement, notice was served EMTS Holding BV, the holdings company of EMTS that was controlling 30 per cent stake in the company, established in the Netherlands, to transfer 100 per cent of its shares in Etisalat Nigeria to the United Capital Trustees Limited to take custody on behalf of the banks.

EMTS has already announced the commencement of the process to unveil a new shareholding structure and new trading name for the company during the transition phase.

The announcement about the takeover by the consortium of banks was contained in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate, by Etisalat Group, which until last Thursday held about 70 per cent of the shares of the company through its affiliates: Mubadala Development Company and Etisalat UAE mobile.