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$1.2bn Debt: Fate of 20 million 9mobile Subscribers Unknown

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As a result of the complications arising from the $1.2 billion loan default by 9mobile (formerly Etisalat) to a consortium of banks, about 20 million Nigerians who are subscribers of the telecoms company would be cut off in 2022.

Also, over 4,000 staff of the company risk being laid off.

This, according to Senate investigation, can only be averted if a new buyer emerges, takes over the company and pays off the debt before the 15 years operational licence given to the company expires in 2022.

This was revealed on Thursday during the investigative hearing by the Senate Committee on Banking and Other Financial Institutions, which is currently investigating the loan default threatening the existence of the 9mobile.

Speaking during the hearing, the Nigerian Communications Commission (NCC), represented by the Director of Legal Services, Yetunde Akinoye, said that in 2007 9mobile was given a 15-year licence to operate in Nigeria, which according to her, will expire in 2022.

She said given the financial crisis facing 9mobile, the hope is that a new investor would emerge to take over the company, pay back the consortium of backs the loans which the original owners of the telecom company collected, and also pay for the renewal of the licence to retain the services and subscribers.

She said that if this is not possible, the banks, in alliance with their security trustees, may push to enforce the loan conditions, which she explained might involve stripping the telecoms company to recover their investment.

Recalling what happened, Akinoye said that NCC, which she said was not privy to the loan agreements, got a letter on the June 21, 2017 from the Security Trustee of 9mobile, notifying the regulatory agency that there is a loan default and that the lenders (banks) want to enforce the legal implication.

She said the banks, which had already taken over the telecoms company, wanted the board of 9mobile to be dissolved and a neutral person brought in, preferably the Central bank of Nigeria (CBN).

To this end, she said the CBN Governor, who did not want the apex bank to become involved, however dissolved the old board and constituted a new board chaired by the CBN Deputy Governor, to ensure that the 20 million subscribers and 4,000 staff of 9mobile are not left high and dry.

On why NCC cannot allow the banks to take full ownership of the company, Akinoye said: “The transfer of licence is not allowed by NCC except under certain conditions but they can transfer the shares. The banks are only interested in getting their money but not to run the company.”

She also said that NCC, unlike CBN in the case of banks, does not have powers by the Act establishing it, to take over telecoms companies that are collapsing. Akinoye noted that given the way Mubadala and the associate paid $250 million to get the Etisalat licence, NCC never suspected that anything would go wrong, adding that NCC is already doing a forensic investigation of 9mobile.

On her part, Oluseyi Osusador, Director of Corporate Affairs of 9mobile, who represented the telecoms company, told the Senate that $82 million and $100 million loans were collected for expansion of their services nationwide. She disclosed that they also collected $1.2 billion loan from a consortium of 13 banks for network expansion across the country in 2015.

She added that in the 2016, they paid their obligations as required until the negotiations broke down due to their inability to meet up, adding that efforts to secure a new agreement failed until the investors left, hence they are now looking for a new investor throughout Barclays Bank.

Responding to the accusation by senators that it did not follow the due diligence to monitor the loan and prevent the original investor from cashing out rapidly, Dr. Okwu Joseph Nnanna, CBN Director, Financial System Stability, who represented the apex bank at the hearing, said that CBN started intervening in the deal between 9mobile and the 13 banks before the loan started having issues of default.

He explained that contrary to comments, CBN did not take over Etisalat but the consortium of banks did based on their rights and legal conditions of the loan which allow them to take over the company at default.

Speaking on behalf of the affected banks, Guarantee Trust Bank, represented by Haruna Musa, a Director in the bank, said the banks are the facility agent, pointing out that their role is administrative in nature.

Haruna said that until 2015, the facility was performing optimally, adding that in some years, Etisalat paid more than expected, but paid 17% of what was expected in 2017, resulting in the commencement of the default.

In its submission, United Capital Trustees Limited, which served as the Security Trustee agent to the loan deal, represented by Tadeni Balogun, said it has other plans on how to deal with the situation but refused to give details.

While lamenting the default, Chairman of the Senate Committee, Rafiu Ibrahim, regretted that the loan became problematic three years into the commencement of the payment.

He asked the Security Trustee Company to explain how the founding Managing Director of Etisalat left the company, adding that the Senate needed to know if he was forced to leave or left voluntarily.

Senator Ibrahim expressed concern that shortly after the investors wrote to NCC, they left immediately and easily.

He said these information is necessary because the Senate may have to invite the Economic and Financial Crimes Commission (EFCC) to take over the investigation because the committee cannot understand why the investors hurriedly left and NCC and CBN are not doing anything to get the money back, perhaps by engaging the Nigerian President to engage the President of the host country of Etisalat to pay the debt.

To this end, he vowed that the Senate will not relent to save the banks and the industry, and the subscribers.

Source News Express

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Gov Mbah Inaugurates Committee to End Gender-Based Violence in Enugu

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The Enugu State government has inaugurated a steering committee to eliminate Gender-Based Violence, GBV, in the state, declaring zero tolerance for the social malaise.

The inauguration took place at the Government House Enugu.

The panel, which is chaired by the Commissioner for Children, Gender Affairs and Social Development, Mrs. Ngozi Enih, draws its membership from the Nigeria Police Force, Ministry of Agriculture and Agro Industrialisation, Ministry of Local Government, Rural Development and Chieftaincy Affairs, Ministry of Human Development and Poverty Reduction, Ministry of Trade, Investment and Industry, Ministry of Justice, Ministry of Health, Ministry of Education as well as the Civil Society.

Inaugurating the panel known as the Steering Committee for Strengthening Institutional and Community Responses to End Gender-Based Violence/Domestication of Enugu State Gender Policy using the Oputa Panel approach, Governor Peter Mbah restated his administration’s commitment to not bringing perpetrators of GBV to book, but also putting in place proactive measures – activities, infrastructure, and systems in place to prevent them.

Mbah, who was represented by the Secretary to the State Government, Prof. Chidiebere Onyia, said, “We take gender-based violence seriously. We have zero tolerance for it, and in Enugu State, we are ready to go the extra mile to deal with it.

“If you notice, the government has selected people that are very committed to this goal. This is not an activity where we just want to check-off the list. We will track this. We will monitor this, and we will have quarterly engagements on the successes that this particular committee has achieved in terms of reference that we are going to send.

“We will tighten those terms of reference indicators, so that we monitor what we are doing both in terms of cost input and the value added. It’s very important to us. Many people will be involved – civil society, the police and various ministries.”

He however, said that the effort was to protect everyone, men and women alike, as GBV was not restricted to any gender.

“The whole idea is to hold people responsible that are involved in matters relating to gender violence and deter people that by culture or by association get involved in that, protect women, protect our children, and in the case of violence against men, protect our men because most times we misconstrue gender violence to mean women, but it can also be men too.

“We encourage our men to speak out and to make sure they understand that the policy that Enugu State is soon going to domesticate is for everyone, and not only for the female gender,” he stated.

In her remark, Mrs. Enih, explained that the Oputa Panel approach was inspired by the need to cover all local peculiarities in domesticating the policy on GBV, restarting government’s confidence in the members of the panel.

“The approach we are going to use is the Oputa Panel approach, and in the Oputa Panel approach, we are going to tour the 17 Local Government Areas to get firsthand information about what our people are going through because policy is meant for the people, and a policy should suit the people.

“Again, every community has its peculiar problems, so that’s why the government decided that if we have to domesticate the gender policy, we have to hear from the people who own the policy and know the changes that they desire to see. That is the reason we are using this approach.

“The committee members are to also serve as judges. As we gather this information from our people, we will come back to tailor it in a way to suit the people of Enugu State, and then our policy is ready.

“We want the people to know that there is a gender policy for them. I can assure you that when the people are aware that there is such a policy, they will seek for the enforcement of that policy. So, this is not going to be one of those policies that will just lie on the shelf,” she said.

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Emulate Christ’s virtues, Glo urges Christians at Easter

Reporter: Sandra Ani

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Glo and Globacom
Globacom

Digital solutions provider, Globacom, has congratulated Christians in Nigeria on this year’s Easter celebration, and urged them to emulate the noble qualities of Jesus Christ.  

The company, in a goodwill message to the Christian faithful in the country, lauded their perseverance through the Lenten period which preceded Easter. It enjoined them to always promote the ideals of selflessness, love and peace among all as a way of demonstrating the virtues of the exemplary life of Jesus Christ. 

“Peace, love and sacrifice are the central message of Easter. Christ offered himself in atonement for the sins of the world and he lived a life which made Him an eternal symbol of peace and goodwill for mankind”, Globacom added. 

The company enjoined all Nigerians to share in the lessons of promoting selflessness, a necessary ingredient in the growth and development of every society. It also enjoined all Nigerians to join hands to make Nigeria a better place for all. 

Easter is celebrated yearly at the end of the Lenten season of fasting and prayer considered as a ritual of purification for the Christian faithful. It also precedes the crucifixion of the Lord Jesus Christ on Good Friday and His eventual resurrection on Easter Sunday.

The company assured its customers of seamless voice, data and Short Messaging Service (SMS) during and after the Easter celebrations, while urging them to avail themselves of the various data and voice offerings on the network.

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NUJ at 70: Private Broadcast Members Congratulate Union

Reporter: Ikenna Oluka

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NUJ at 70
NUJ

The Guild of Private Broadcast Managers  has extended its heartfelt congratulations to the Nigeria Union of Journalists (NUJ) as it celebrates its 70th Anniversary.

In a congratulatory message signed by the Guild’s National President, Ambassador Patrick Uzoyi-Peters, JP MNGRM, the guild described the milestone as a testament to the NUJ’s unwavering commitment to upholding press freedom, journalistic integrity, and the advancement of democracy in Nigeria.

“For seven decades, the NUJ has played a pivotal role in shaping the media landscape, advocating for the rights and welfare of journalists, and ensuring that the voice of the people remains strong and unyielding. Your resilience, professionalism, and dedication to ethical journalism have been instrumental in fostering transparency, accountability, and national development”.

Celebrating this historic achievement, the Guild’s President, Uzoyi-Peters recognized the sacrifices and contributions of journalists across the nation who work tirelessly to inform, educate, and empower society.

The Guild reiterated it commitment towards collaborating with the NUJ in promoting responsible journalism and strengthening the media industry for the greater good.

While wishing the NUJ continued success, growth, and greater impact in the years ahead, President Uzoyi-Peters prayed that the anniversary serve as a renewed call to uphold the principles of truth, fairness, and press freedom in our collective pursuit of a more informed and just society.

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