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3 Nigerians Banks to take over Etisalat Nigeria from 8th March

    Very Sad, but as said in the business line “Business tends to rise and fall” It all depends on the management, they may fail to look at the advantages and disadvantages of collecting Loan!

    Taking drastic and dangerous decision is the task most people fail to consider including the merit and dismerit. To be sincere about this, I especially don’t like this but what can we say either, although, Etisalat has been kind of funny with their data plans.

    Cuddled from Premiumtimes;

    The consortium of some foreign and Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank, have been having a running battle with the mobile telephone operator over a loan facility totaling $1.72 billion (about N541.8 billion) obtained in 2015.

    The loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.

    However, following the failure of the company to meet its debt servicing schedule agreed since 2016, the three Nigerian banks, prodded by their foreign partners, reported Etisalat to banking sector regulator, the Central Bank of Nigeria, CBN, and its communications sector counterpart, the NCC.

    Although Etisalat blamed its inability to fulfill its obligation to the banks on the current economic recession in Nigeria, the banks said their attempt to recover the loan by all means was fueled by the pressure from the Asset Management Company of Nigeria, AMCON, demanding immediate cut down on the rate of their non-performing loans.

    Etisalat is Nigeria’s fourth largest telecoms operator, with about 21 million subscribers as at January 2017, according to the NCC. It commenced business in Nigeria in 2009.

    NCC appears not to be favourably disposed to the takeover proposal, the source said, as it believed that Etisalat is not only a viable going concern but also willing and able to negotiate the servicing of its loans.

    Although, the Nigerian Communication Commission, NCC, intervened to bring about Peace but their trial was to no avail. However, rumors has it that, NCC approved the Take over but it isn’t TRUE!