It is au revoir from Etisalat Nigeria as it phases out brand in Nigeria. After terminating its management agreement with its Nigerian arm, the Abu Dha
It is au revoir from Etisalat Nigeria as it phases out brand in Nigeria. After terminating its management agreement with its Nigerian arm, the Abu Dhabi owned telecommunications company has given Etisalat Nigeria three weeks to phase out the brand in the country. The decision is as a result of the collapse of its $1.7 billion loan talks. Chief executive of Etisalat International, Hatem Dowidar said that the there was no need for the brand in Nigeria after the collapse of the loan talks.
Nigerian regulators intervened last week to save Etisalat Nigeria from collapse after lenders were calling for the probe and total takeover of the company even as Etisalat Nigeria claimed it had repaid 42 per cent of the loan. According to Ibrahim Dikko, vice-president, Regulatory & Corporate Affairs of Etisalat Nigeria, “As at today, we can categorically state that the outstanding loan sum to the consortium of banks stands at $227m and N113bn, a total of about $574m if the naira portion is converted to US Dollars.
“This in essence means almost half of the original loan of $1.2bn, has been repaid. Etisalat continued to service the loan up until February 2017, when discussions with the banks regarding the repayment restructuring commenced,” he said.
However, Etisalat International announced on Monday that it was pulling out after all UAE shareholders of the company have exited and left the board and management of the Nigerian brand. Dowidar said discussions were ongoing with Etisalat Nigeria to provide technical support, adding that it can use the brand for another three-weeks before phasing it out.
Nothing has been said about how this will affect the network and its integrity as million of Nigerians are subscribed to the network even though the Nigerian Telecommunications Commission (NCC) assured that the network’s integrity would not be compromised amid the loan disagreements.
“The NCC wishes to reassure about 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator. The commission has taken proactive steps to cushion the impact of the takeover; this is without prejudice to the ongoing effort between Etisalat and the banks toward a negotiated settlement.
“NCC wishes to reassure all stakeholders in the telecommunications sector, in particular the subscribers on the Etisalat network, that it will ensure that the integrity of the network is not compromised.’’
NAN
