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

Published

7 years ago

February 23, 2018

grassroots

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

News

Penpushing Media congratulates IPI new leadership

Published

3 days ago

December 19, 2024

grassroots

IPI Nigeria

The Management and Editorial Board of Penpushing Media, owner of online newspapers and television have congratulated the newly elected leadership of International Press Institute (IPI) Nigeria Chapter led by Musikilu Mojeed of Premium Times to run affairs of the global organisation for next three years.

The media outlet in a congratulatory letter signed by chairman Editorial Board, Olufunke Fadugba said the organization rejoiced with the team on renewal of their tenure, and equally encouraged them not to only sustain the previous visibility and interventions on behalf of the media but to do more

“We rejoice with you on the renewal of your tenure as leaders of International Press Institute Nigeria. This congratulatory message is to encourage you to not only sustain the previous visibility and interventions on behalf of the media but also to do more”, the letter read.

Fadugba pointed out that the past months have been challenging for journalists, stressing that as the democracy in the country move closer to 2027, it is expected that the great battle for freedom of expression will be more intense.

“The International Press Institute Nigeria and other stakeholders will need to be more creative, determined, and build positive networks to guard the media from existential threats both from within and outside the media ecosystem”, the letter stated.

“However, judging from your previous performances and renewed impetus, we in Penpushing Media have no doubt that you will make a success of this tenure, in the interest of the media, the people and the country”, Fadugba emphasized

“On behalf of the Board, Management, and members of Penpushing, we wish the newly elected Executive Members a successful tenure. Congratulations, as we urge you to continue to carry the members along in order to enjoy their much-needed support”, the letter said

The other elected officials include Ahmed Shekarau of Media Trust as Secretary, Fidelis Mbah of Al Jazeera Television as Deputy President, Rafatu Salami of Voice of Nigeria as Treasurer, Yomi Adeboye of Herald Newspaper as Assistant Secretary and Tobi Soniyi of Arise News as Legal Adviser.

The President of International Press Institute (IPI), Nigeria, Musikilu Mojeed in response to the congratulatory letter expressed appreciation to the management of Penpushing Media, as well as commitment to press freedom and responsible journalism.

“We are deeply grateful for your congratulatory statement on the recent IPI Nigeria election. Your consistent support for IPI means the world to us, and we appreciate your commitment to press freedom and responsible journalism”, Mojeed wrote.

“On behalf of the Board of Trustees, Executive Committee, and members of the Institute, I extend heartfelt thanks for your encouragement. May God continue to bless you abundantly”, he added

“Your support and encouragement inspire us to continue promoting ethical journalism, advancing media pluralism, and defending press freedom. We look forward to collaborating with your administration to expand access to information and reinforce Nigeria’s democratic ethos’, the President stated.

News

Pensions and other Military Entitlements: Matawalle Commends President Tinubu for Prompt Payment

Published

2 weeks ago

December 6, 2024

grassroots

*Minister Bello Matawalle

The Honourable Minister of State for Defence, H.E. Dr. Bello Muhammed Matawalle MON, has expressed his gratitude to H.E President Bola Ahmed Tinubu GCFR, for his decisive action in ensuring the prompt payment of military salary increase with three months arrears and also today’s release of funds for the payment of Pension and other owed entitlements of retired military Personnel

Dr. Matawalle confirmed that alerts regarding the three-month salary increase for military personnel have begun to be received.

The Minister commended President Tinubu for his unwavering commitment to the welfare of both serving and retired military personnel, emphasizing that the payment of pension arrears owed to retirees will continue to receive critical attention. This initiative reflects the President’s dedication to enhancing the living standards of those who have served the nation.

Furthermore, the Hon minister acknowledged the efforts and support of the Honourable Minister of finance and Coordinating minister of Economy Mr Wale Edun who was very committed in the actualization of these payments.

Dr. Matawalle urged the Nigerian military to remain steadfast in their duties, reassuring them that President Tinubu is fully committed to boosting their morale and providing the necessary support to combat insecurity in Nigeria. “Despite initial setbacks, be rest assured that Mr. President will do everything within his power to uplift our military forces as they confront the challenges of insecurity,” he affirmed.

Highlighting the significant contributions of the Nigerian military in combating insurgency, terrorism, and other forms of criminality, the Minister reiterated the vital role that these brave men and women play in ensuring the nation’s security.

He assured the officers and personnel of the Nigerian Armed forces of President Tinubu’s unwavering resolve to eradicate insecurity in Nigeria, bolstered by the readiness and resilience of the military.

News

We Received N80,000 Minimum Wage in November – Enugu Labour Leaders

Published

3 weeks ago

December 3, 2024

grassroots

Enugu Labour Leaders

The Organised Labour in Enugu State has refuted the media reports that the new minimum wage was yet to be paid in the state, saying that the implementation of the N80,000 minimum wage, which is above the N70,000 national minimum wage, commenced in November 2024.

The workers also said that they had no plan to go on strike since. They said that observed discrepancies in consequential adjustment in the implementation of the N80,000 minimum wage had already been conveyed to Governor Peter Mbah and nursed no doubts that it would be addressed subsequently, as he had already earned workers’ trust by his commitment to their welfare since his assumption of office.

This was made known in a joint statement in the state capital on Tuesday by the Chairman, Nigeria Labour Congress, NLC, Enugu State Council, Comrade Fabian Nwigbo; Chairman of the Trade Union Congress, TUC, Comrade Ben Asogwa; and the Chairman of the state’s Joint Public Service Negotiating Council, JNC, Comrade Ezekiel Omeh.

The statement read, “The Orgaised Labour in Enugu State wishes to make clarifications in several media reports, which wrongly project Enugu among the states that are yet to pay the national minimum wage.

“We want to acknowledge the fact that the Enugu State Government paid the N80,000 minimum wage approved by the governor in the November 2024 salary.

“However, the minimum wage paid did not reflect the consequential adjustments inherent in minimum wage implementation.

“As labour leaders, we have already communicated to His Excellency the observed discrepancies and in his usual magnanimity to the welfare of workers, we strongly believe that he will address this subsequently.

“Our confidence in the governor remains intact, considering his usual dispositions to the wellbeing of workers.

“It is worthy of note that he continued to pay wage award of N25,000 he approved for workers from December 2023 till October 2024 when the new minimum wage of N80,000 was approved and consequently reflected in the November salary.

“We also recall his good faith in ensuring that local government employees were included from the onset in the new minimum wage of N80,000, having earlier upgraded them to full N30,000 minimum wage upon assumption of office after several years of waiting.

“Likewise, he approved the payment of the N1.9bn four-year accumulated leave allowances owed to teachers of public primary schools in the state and eight-month salary arrears valued at over N467m, which were also owed the academic, non-academic, and casual staff of the Enugu State College of Education Technical, ESCET, Enugu, before his assumption of office.

“Consequently, in the same culture, we trust him to address all the concerns regarding consequential adjustments in the implementation of N80,000 minimum wage.

“So, we have not gone on strike. We do not also contemplate or foresee any strike in the near future because there is no need for that yet.”