The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have held high level discussions in efforts aimed at ensuring that Etisalat, Nigeria’s leading mobile operator by quality of service, continues to service its debt obligations to a consortium of banks that granted it a $1.2 billion loan in 2013 and at the same time maintain its operations optimally.
After a meeting on Thursday, March 9, 2017, in Abuja between the Executive Vice Chairman of the NCC, Prof. Umar Danbatta and the CBN Governor, Mr. Godwin Emefiele and his team, a decision was reached between the two leading regulators, to intervene in the loan issue between Etisalat Nigeria and the consortium of commercial banks, being Guaranty Trust Bank, Access Bank and Zenith Bank regarding the loan.
A statement by the NCC’s Director of Public Affairs, Mr. Tony Ojobo, explained that the meeting which held at the CBN Headquarters in Abuja “was convened by the financial regulator at the instance of the NCC, the telecom regulator, to further deliberate on how best to stave off the attempt by the banks to take over Etisalat.”
According to the statement, at the end of the meeting, the Central Bank of Nigeria agreed to invite Etisalat management and the consortium of banks to a meeting the next day towards finding an amicable resolution to the matter.
“The NCC as a regulator of the telecom industry had moved quickly to intervene earlier in the week by reaching out to the CBN convinced of the negative impact such a bank take over will have on the industry.
“NCC was worried about the fate of the over 20 million Etisalat subscribers and the wrong signals this may send to potential investors in the Telecom industry,” the statement added.
Contacted by IT & Telecom Digest on the issue over the phone, Mr. Ibrahim Dikko, Etisalat Nigeria’s Vice President, Regulatory and Corporate Affairs confirmed the negotiations and commended the NCC and the CBN for the steps both institutions are taking, adding that given the harsh economic situation in the country, and the fact that the telecoms sector was not afforded opportunity to access the CBN window for foreign exchange, it is important to support the industry.
“We are optimistic that they (the creditors) too will see that it (Etisalat Nigeria) is a viable strong brand and we hope to reach an agreement soon,” he added.