BusinessTrending Story

Etisalat Pulls Out of Nigeria After Loan Talks Collapse

491

[dropcap]T[/dropcap]roubled Etisalat has terminated its management agreement with its Nigerian arm and given the business time to phase out the brand in Nigeria, the chief executive of Etisalat International said on Monday.

Nigerian regulators intervened last week to save Etisalat Nigeria from collapse after talks with its lenders to renegotiate a $1.2 billion loan failed. Nigerian Communications Commission, NCC, tried a couple of times to mediate issues between the telecoms company and the banks without results.

All UAE shareholders of Etisalat Nigeria have exited the company and have left the board and management, Hatem Dowidar said in an interview with Reuters.

He 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.

The loan facility totalling $1.72 billion (about N541.8 billion) involving a foreign-backed guaranty bond, was for Etisalat to turn around its network and expand its operations in Nigeria. However, the banks claimed that Etisalat had failed to service the debt as agreed since 2016. They subsequently reported Etisalat to the banking sector regulator, the Central Bank of Nigeria, CBN, and its communications sector counterpart, the NCC.

 

Leave a comment

Related Articles

Naira Strengthens to 8-Month High, Gains N20.67 Against Dollar

The Nigerian naira continued its stability on Monday, fueled by reduced demand...

CBN Extends Deadline for BDCs to Access Forex Market Until May 30

The Central Bank of Nigeria (CBN) has granted eligible Bureau de Change...

Nigeria’s Electronic Payment Transactions Hit Unprecedented N1.07 Quadrillion in 2024

Nigeria’s electronic payment transactions have reached an all-time high, hitting N1.07 quadrillion...

Just in: Nigerian Telecom Users to Pay More as NCC Approves 50% Tariff Hike

The Nigerian Communications Commission (NCC) has granted telecom operators’ request to adjust...

Nigeria’s inflation rate rises to 34.80% in December 2024 up from 33.60%

Nigeria’s inflation rate rose to 34.80 percent in December 2024, up from...

Transactions with GHL: FirstBank dispels misleading reports, reaffirms commitment to excellent, standard banking services

First Bank of Nigeria Limited (FirstBank) has distanced itself from a recent...

Nigeria’s Economy Soars as Customs Records N196.94trn Trade Value in 2024

The Nigeria Customs Service (NCS) has achieved a remarkable milestone, recording a...

CBN Slams N1.35bln Fine on Nine Banks for Cash Scarcity

The Central Bank of Nigeria (CBN) has imposed a total fine of...

Tinubu Calls for Boost in Regional Trade to Drive African Growth

President Bola Tinubu has emphasized the importance of Africa focusing on internal...

Nigerian Treasury Bills Auction Shatters Records with 283.42% oversubscription

The Central Bank of Nigeria (CBN) has announced a staggering 283.42 percent...

Naira hits new low, slumps to N1,665/$1 in parallel market despite official market gains

The Nigerian Naira on Monday depreciated to N1,665 per dollar in the...

U.S. dollar strength drives oil prices down amid market pressure

By Samuel Akpan with agency report Global oil prices took a step...

Domestic Crude Oil Sale Initiative: Tinubu’s Strategic Move Pays Off

President Bola Tinubu’s directive to sell crude oil and refined products in...

CBN Sets Daily POS Transaction Cap at N100,000 for Agents

The Central Bank of Nigeria (CBN) has introduced a new policy aimed...

FirstBank’s Decemberissavybe 2024 kicks off with Kenny Blaq’s “Reckless” Musicomedy

December is a joyous season in Nigeria, a time when individuals take...

Nigeria’s Inflation Rate Rises to 34.6% in November

Nigeria’s inflation rate has risen to 34.6% in November, up from 33.8%...

Illicit mint naira sale: CBN slaps N150m fine on erring banks

The Central Bank of Nigeria (CBN) has introduced a strict measure to...

FG Sets December 16 for N120 Billion Bond Sale

The Federal Government, through the Debt Management Office (DMO), has announced plans...

Naira plummets to N1,780 per dollar, reversing recent gains

The Nigerian Naira experienced a sharp value decline on Wednesday, falling from...

Naira Posts Strong Gains Against Euro Amid Forex Market Reforms, European Political Uncertainty

The Nigerian naira has made significant gains against the European currency at...