Like the never ending drama, the last may not have been heard on the sale of the Nigerian Telecommunications Limited, consummated last year and taken over by NATCOM, a company spearheaded by Mr. Olatunde Ayeni, chairman of Skye Bank.
In what may well be termed the latest of his searchlights on the nation’s economy, President Muhammadu Buhari has demanded a comprehensive report on the sale of NITEL, which went along is mobile arm, the Nigerian Mobile Telecommunication (Mtel).
NITEL has suffered four attempts at selling the never-performing state enterprise before the latest sale.
President Buhari’s request was put squarely at the Ministry of Communications Technology, which now has the responsibility to explain in details, having obtained all necessary information, to the president the processes of the sale, especially against the background of many voices being raised regarding the deal.
Many people have asked why the company, with so many assets – whether performing or non-performing – could be sold at a ‘cheap’ rate of $252 million, when in fact the GSM licence of MTel alone was worth $285 million in February 2001. Those holding this position argue that the same GSM licence was sold to Etisalat for a whopping $400 million in 2007, saying even if it was the MTel alone that was being sold, nothing less than $500 million should have been enough.
The President made the request for detailed information on the NITEL sale having been briefed by the Permanent Secretary of the Ministry, Dr. Tunji Olaopa in Abuja on Tuesday, August 18.
The National Council on Privatisation (NCP), presided over by former Vice-President Namadi Sambo, had on February 27, 2012, approved the privatisation of NITEL and Mtel through “guided liquidation.”
The preferred bidder of NITEL/Mtel, NATCOM Consortium, on April 2, 2015, completed the payment of the telecommunications assets for $252 million.
Buhari, however, said he was concerned by the continuing protests by former NITEL/Mtel employees and other Nigerians over the manner in which assets of the company were sold.
The president challenged the ministry to work harder to fully develop the revenue-generation potential of Nigeria’s information technology sector.
He also directed the ministry to bring forward for his consideration and approval, all pending proposals for the development of the country’s IT sector which required the approval of the Federal Executive Council (FEC).
“Where you don’t need EXCO approval and you are not in breach of the law and will not lose money, you can go ahead.
“Now that oil costs less and we are contending with its theft, we have to move to areas where we can realise revenue quickly’’, he said.
Buhari welcomed the plan by the ministry to use post offices across the country for IT and financial transactions especially in the rural communities, saying that he was happy to hear that “we are recovering the post offices from rats and rodents.”
The ministry’s presentation dwelled heavily on the potential of the IT sector in boosting the nation’s economy.
According to the permanent secretary, the sector contributes 10 per cent of the country’s Gross Domestic Product, but could grow to 20 per cent if some proposals by the ministry are approved and implemented.