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NLC Threatens To Name Governors Owing Salaries

3 Nigerian banks set to take over Etisalat today over N541.8 billion debt

Posted: 08 March, 2017 at 11:47 am
3 Nigerian banks set to take over Etisalat today over N541.8 billion debt
3 Nigerian Banks Set To Take Over Etisalat Today Over N541.8 Billion Debt Photo 1

Three Nigerian banks are set to take over telecommunications firm Etisalat today, Wednesday, March 8, over unpaid N541.8billion debt,Premium Times reports.

A top source at the NCC said late Tuesday that the commission had approved the takeover, which is expected to occur today.

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 totalling $1.72 billion (about N541.8 billion) obtained in 2015.

The move follows the failure of the Nigerian Communication Commission (NCC) to broker a peaceful resolution between Etisalat Nigeria and the consortium of banks.

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 fulfil 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 fuelled 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.

Meanwhile, in the bid to restore the ailing economy, the Federal Government has released the Economic Recovery and Growth Plan (ERGP) which unveils a road map for Nigeria's economic recovery growth and sustainable development.

This was unveiled by Acting President Yemi Osinbanjo

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Recent Replies (5)

So,they owed banks this amount of money,little wonder they are deducting money from people's account without reason all to pay their debt.you will not go free without paying for those stealing by trick acts of yours. - Joe
Sounds bad! I pray that they will give them more time to pay the debts - Ibrahimmuhammad0092@gmail.com
the economic recession is affecting everybody in the country. its the change we asked for. - Lilian Nnedinso
😨😵😵😵😵😵😱😱 sooo sorry for you people. - Sandra Chinasa
Banks to market network enh, this is the beginning of the end for Etisalat. Etisalat, sorry for your gradual extinction. - yayahdrs8@gmail.com
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