BEVERLY HILLS, March 11, (THEWILL) – Etisalat Nigeria has secured reprieve on the loan default crisis facing the telecoms company following the intervention of the Nigeria Communications Commission, NCC, and the Central Bank of Nigeria, CBN.
An attempt was made on March 8 by a consortium of some foreign and Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank, to take over Etisalat Nigeria because of its N541.8bn debt.
The banks said their attempt to recover the loan by all means was fuelled by the pressure from the Asset Management Company of Nigeria, AMCON, demanding immediate cut down on the rate of their non-performing loans.
But NCC’s Director of Public Affairs, Mr Tony Ojobo, said in a statement issued on Saturday that a meeting convened by CBN and NCC to find a quick resolution to the crisis afforded reprieve to Etisalat.
According to the statement, ”Friday’s meeting succeeded in halting the attempt by Etisalat’s creditors at bringing it under any form of take over.
“Receivership was completely taken off the table in a meeting that was very productive and constructive.
“The meeting, which held at the CBN office in Lagos, had the consortium of banks being owed and Etisalat in attendance.
“The banks and the mobile network operator agreed to concrete actions that will bring all parties closest to a resolution.”
Ojobo disclosed that CBN and NCC were eventually able to secure for Etisalat the necessary “oxygen” to enable the telecoms firm continue to meet urgent operational expenses.
He stated that the CBN Governor, Mr. Godwin Emefiele, who chaired the meeting, was categorical on what needed to be done by both parties towards a quick resolution.
The director said that NCC equally made it clear that everything necessary must be done to protect the 23 million Etisalat subscribers.
He stated that there was also the need to protect the telecom industry to prevent potential investors from developing cold feet.
Ojobo further said effort has been made to ensure that Etisalat remains in business while the consortium of banks meet their obligations to their customers.
According to him, “A meeting will hold on March 16 to agree on a payment restructuring path going forward.
“The NCC will lead the CBN in a possible crucial meeting with Etisalat’s shareholders anytime soon,” he said.
