Tag Archives: Etisalat

Banks move against Etisalat’s plan to pay debts in Naira

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Banks have opposed a proposal by Etisalat Nigeria to convert part of a $1.2 billion loan from dollar to naira.

Etisalat had proposed that the Abu Dhabi telecommunications group and its other shareholders should recapitalise it instead.

A banker, who confided in Reuters, revealed that the seven-year syndicated loan, on which Etisalat missed a payment, has a dollar portion of $235 million, which the firm wants to convert to naira to overcome the hard currency shortages in the Nigeria’s interbank market.

A source at the NCC told The Guardian yesterday that the meeting was shifted due to some unforeseen circumstances.

“It would now be held at an agreed date next week, and will include the CBN, NCC and Etisalat’s shareholders. The major thing for now is that discussions are on-going,” the source said.

It was further learnt that Etisalat is asking the banks to convert the dollar component to naira “but the banks don’t want that option and have told them to talk to their parent body to settle the loan.”

The UAE’s Etisalat owns 45 per cent of Etisalat Nigeria, while Abu Dhabi’s Mubadala owns 40 per cent of the company, which is due to meet its lenders for debt talks mediated by Nigeria’s central bank and the telecoms regulator.

This meeting was proposed after the authorities agreed with the local banks to prevent Etisalat Nigeria, which was not available for comment, going into receivership.

In 2013, Etisalat Nigeria was said to have secured a total of $1.7 billion medium term syndicated loan facility with a consortium of Nigerian banks. The facility included both naira and dollar tranches from a consortium of Nigerian 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.

Sources from the Nigerian affiliate of the Abu Dhabi-listed telecoms firm had given notice to its Nigerian lenders that it would miss a payment on a $1.2 billion loan in February.

 

Source: The Guardian

DEBT CRISIS: NCC, CBN halt decision to take over Etisalat

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The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have got reprieve for Etisalat on the loan default crisis facing the company.

In a statement on Saturday, Tony Ojobo, director of public affairs of NCC, said the reprieve came following a meeting convened by CBN and NCC to find a quick resolution to the crisis.

“Friday’s meeting succeeded in halting the attempt by Etisalat’s creditors at bringing it under any form of take over,” the statement read.

“Receivership was completely taken off the table in a meeting that was very productive and constructive.

“The meeting, which held at the CBN office in Lagos, had the consortium of banks being owed and Etisalat in attendance.

“The banks and the mobile network operator agreed to concrete actions that will bring all parties closest to a resolution.”

He said CBN and NCC were able to secure for Etisalat the necessary “oxygen” to enable it continue to meet urgent operational expenses.

Ojobo said Godwin Emefiele,  governor of CBN, who chaired the meeting, was firm in declaring what needed to be done by both parties towards a quick resolution.

He said NCC equally made it clear that everything necessary must be done to protect 23 million Etisalat subscribers.

The director said there was also the need to protect the telecoms industry to prevent potential investors from developing cold feet.

He said effort has been made to ensure that Etisalat remains in business while the consortium of banks meet their obligations to their customers.

“A meeting will hold on March 16 to agree on a payment restructuring path going forward,” he said.

“The NCC will lead the CBN in a possible crucial meeting with Etisalat’s shareholders anytime soon.”

On March 8, there was an attempt by a consortium of banks to take over Etisalat because of its N541.8 billion debt.

A 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 dollars (about N541.8 billion) obtained in 2015.

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.

NCC seems not to be favourably disposed to the takeover proposal; as it believed that Etisalat is not only a viable going concern, but also willing and able to negotiate the servicing of its loans.

Etisalat is Nigeria’s fourth largest telecommunications operator. It commenced business in Nigeria in 2009.

 

Source: The Cable

JUST IN: CBN intervenes in Etisalat’s N377 Billion debt crisis

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The Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have waded into Etisalat Nigeria multi-billion naira debt crisis.

Umar Danbatta, executive vice chairman of the NCC, met with Godwin Emefiele, the CBN governor and his team, on Thursday afternoon, and reached to intervene in the loan issue between Etisalat Nigeria and a consortium of commercial banks.

“The meeting which was held at the CBN in Abuja was convened by the financial regulator at the instance of NCC and the telecom regulator to further deliberate on how best to stop the attempt by the banks to take over Etisalat,” Tony Ojobo, NCC spokesperson said via a statement.

“At the end of the meeting, the CBN agreed to invite Etisalat management and the banks to a meeting tomorrow, Friday, toward finding an amicable resolution.”

Ojobo said that the NCC as a regulator of the telecom industry had moved quickly to intervene earlier in the week by reaching out to the CBN because it was convinced of the negative impact such takeover move would have on the industry.

He added that NCC was worried about the fate of the over 20 million Etisalat subscribers and the wrong signals this might send to potential investors in the Telecom industry.

Oluseyi Osuntedo, head of public relations, Etisalat Nigeria, had told NAN that “discussions are going on; nobody is taking up the company”.

“It is not true that we are being picketed, whoever gave the information is not telling the truth,” she said.

Earlier, NAN reported that the telco’s debt was at N377 billion, without interest.

A 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 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.

NCC appears not to be favourably disposed to the takeover proposal as it believed that Etisalat is not only a viable going concern, but also willing and able to negotiate the servicing of its loans.

Etisalat is Nigeria’s fourth largest telecoms operator with about 21 million subscribers as at January 2017, according to the NCC.

 

Source: The Cable

Naira devaluation to blame for our N377bn debt crisis – Etisalat

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The Nigerian affiliate of Abu Dhabi-listed telecoms company Etisalat is in talks with 13 Nigerian banks to renegotiate the terms of a $1.2 billion loan it took out four years ago after missing a payment.

At current official rate, the loan, without interest stands at N377 billion.

Ibrahim Dikko, vice president for regulatory affairs at Etisalat Nigeria, said Etisalat missed payments due to the economic downturn in Nigeria, a currency devaluation  and dollar shortages on the country’s interbank market.

“We are in discussions with our bankers and have been for quite a while. They have not taken over the business and we are hoping that we can resolve the issue and find a way to renegotiate terms,” Dikko told Reuters.

Emirates Telecommunications Group (Etisalat) owns a 40 percent stake in its Nigerian affiliate, which accounted for around 3.7 percent of the group’s revenue in 2013.

Etisalat Nigeria signed a $1.2 billion medium-term facility with 13 Nigerian banks in 2013, which it used to refinance an existing $650 million loan and fund a modernisation of its network.

Dikko said the business performed well last year and it was still in profit at the level of earnings before interest, tax, depreciation and amortisation, while loan repayments had been up to date “until recently”.

He said that the company was now looking at “all the options”, which could include converting the loan into naira, but did not want to anticipate the outcome of talks with the lenders.

A banking source said Etisalat Nigeria had given notice to Nigerian lenders that it would miss a payment in February which triggered a debt discussion, adding that they were yet to agree on terms.

“We want to see more skin in the game from the foreign parent. They also have a shareholder loan we want them to convert into equity which would put less pressure on cash flow and its receivables,” the banker said.

The source said lenders wanted Etisalat to increase its stake in its Nigerian affiliate in order to reduce the risk of the company pulling out of the country due to the debt issue.

Banks involved in the loan deal include: Zenith Bank , GT Bank, First Bank, UBA , Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank.

Several other firms took out dollar loans in 2013 to expand at a time Nigeria was seen as an attractive investment prospect. Its economy was growing at 7 percent with a stable currency and oil prices were rising.

But now the country has been running short of dollars as oil revenues have fallen along with the price of crude, pushing the economy into its first recession in a quarter of a century.

That has weakened the naira which trades at a lower level on the black market than the official interbank rate versus the dollar.

The dollar shortages have made it difficult for local companies to get access to foreign currency and as a result some have struggled to repay dollar-denominated debts with several lenders having restructured loans to oil firms.

Last month Nigeria’s biggest airline Arik Air was placed in receivership by the country’s “bad bank” AMCON for unpaid debts of around 147 billion naira.

 

Source: The Cable

JUST IN: 3 Nigerian banks set to take over Etisalat over N541.8bn loan

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Three Nigerian banks are set to take over telecommunications firm, Etisalat over its failure to pay a N541.8bn loan facility.

According to online news medium Premium Times the consortium of banks including Guaranty Trust Bank, Zenith Bank and Access Bank and some foreign banks have been a running battle with the mobile telephone operator over a loan facility totalling $1.72 billion (about N541.8 billion) obtained in 2015.

The Nigerian Communication Commission has tried to broker peace between both parties but the banks are set to take over the company on Wednesday.

The loan involved a foreign-backed guaranty bond and was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.

Due to the failure of the company to meet its debt servicing agreement scheduled 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.

Etisalat has blamed its inability to fulfil its obligation to the banks on the current economic recession in Nigeria.

According to the banks, 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.

A senior official of one of the banks who spoke on the condition of anonymity said one of the options they have proposed to Etisalat management as a middle way out of the crisis was for it to request for a bankruptcy status.

The official said the bankruptcy option would require having receivership management appointed by the banks to oversee its operations.

According to the source, the NCC is however, not favourably disposed to the takeover proposal, as it believes Etisalat was not only a viable going concern, but also willing and able to negotiate its loan servicing.

A top source at the NCC on Tuesday said the commission had approved the takeover, which is expected to occur on Wednesday.

 

Source: YNaija

NCC releases short code to opt out of unsolicited messages from Telcos.

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The Nigerian Communication Commission, NCC, on Thursday advised consumers to take advantage of the 2442 short code to choose the type of messages they want to receive from telecoms operators.

The Executive Vice-Chairman of NCC, Umar Danbatta, gave the advice at the 79th Telecom Consumers Parliament help in Abuja.

He said that the parliament, with its theme: Implementation of the `Do not Disturb’ (DND): the journey so far,’ was aimed at sensitising the public to the policy.

Mr. Danbatta said that the short code would go a long way to give consumers the right to choose the messages they wanted to receive.

According to him, following the barrage of complaints on the menace of unsolicited message, the commission swayed into action by mandating the activation of 2442 short code.

“The code will enable consumers to control the type of messages they receive.

“I am glad that it has come into effect and I urge all consumers to take advantage of this new regime by sending “stop to 2442’’ to avoid unsolicited messages, he said.

Mr. Danbatta said the commission was aware that for the initiative to succeed, there was need for massive public enlightenment by both regulator and the operating companies.

“It is on this regard that the theme of today’s parliament becomes relevant.

“The objective is to place the issue on the front burner of our discourse until unsolicited messages become a thing of the past,” he said.

Mr. Danbatta said the issue of consumer’s protection was very paramount to the commission, adding that consumers were kings in the market place.

To uphold the principle, he said the commission had put in place various programmes to inform, educate and protect the consumers of telecom service.

Presenting a paper on the theme, Ayoola Oke, a telecom consultant with NCC, called on operators to ensure full compliance with the 2442 short code.

Mr. Oke said that one major challenge of the policy was lack of awareness, hence the need for both the regulators and the telecom operators to be involved in massive publicity.

He called for effective complaint management by the operators and network management to block spam and screen out malicious mails.

Responding to questions on outright ban on unsolicited messages, Amina Shehu, Head of Legal, NCC, said complete ban was not possible because of e-commerce system.

The Nigeria Data Pricing War – by Yemi Ade-John

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The overriding principle should be that lower prices are good for the consumer and if their is underpricing or cartel price fixing there are methods for punishing that behavior all the while ensuring that costs of fines for example are not passed on to consumers.

All today’s big operators were once small operators and they did fine. Etisalat came in last and is doing fine and we haven’t heard that NITEL is complaining

How many operators make up a monopoly or oligopoly and how many more do we need to get this vaunted ‘perfect’ market?

Is the CDMA platform efficient or more beneficial,why is it being protected and who says they won’t engage in anticompetitive practices themselves just like the big GSM ones have E been doing presumably for years unchecked till now? So are we now being encouraged to migrate to CDMA operators with their limited geographical spread?

What heaven dictated business model did the regulator use to determine that under-pricing was taking place?

I have never heard of a regulator anywhere dictating prices to go upwards on its own initiative for over 80% of the consumer base in an industry;its normally the other way with the operators persuading a reluctant regulator on the need to be allowed to effect increases-in areal democratic society that this sort of regulatory behavior would result in heads rolling!

NCC to Sanction Airtel, Globacom, MTN, 10 Others Over Unsolicited Telemarketing

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The Nigerian Communications Commission (NCC) on Monday said it would sanction 13 telecommunications operators for failing to comply with the ‘2442 Do Not Disturb (DND)’ directive on unsolicited telemarketing. According to a statement signed by the NCC’s Director of Public Affairs, Mr Tony Ojobo, the directive was issued on April 20, 2016.

Ojobo said that the 13 operators included: Airtel Network Ltd., MTN Nigeria, Globacom Nigeria, Smile Communication, Visafone Communications, Ntel, Etisalat, Multi-Links, Starcomms, Danjay Telecoms, Gamjitel Ltd., Megatech Engineering Ltd. and Gicell Wireless.

According to him, the service providers have been given another one-week ultimatum, from Monday, Nov. 14, 2016, to remedy the situation or face the sanctions enshrined in the directive.

“Worried by the non-compliance by the operators, occasioned by a deluge of complaints by subscribers across Nigeria, the NCC inaugurated an eight-member committee to look into the matter.

“After several meetings, including those it held with the network providers, it became necessary to issue the latest ultimatum to redress the menace of incessant unsolicited text messages and phone calls for telemarketing via the various networks,’’ he said.

Ojobo said the commission had written to the providers on whose networks it had received series of complaints from subscribers regarding the efficacy of DND.

He said the phrase ‘Network-Generated SMS’ referred to in Part (d) of the directive shall be taken to mean messages and calls, with respect to only information on emergencies.

According to him, the information on emergencies, include: national security, fire, notifications on network maintenance programmes down times and notification regarding subscribers’ bundle usage and service renewals.

“Other text messages and voice calls informing subscribers of new products and service offerings are not regarded as ‘Network-Generated’ and, therefore, regarded as “unsolicited marketing messages’’.

“NCC has therefore, asked these network providers to ensure that information on the Do Not Disturb service should be disseminated after every revenue-generating activity via the End of Call Notification (EOCN).

“For the period not less than 45 days, within the hours of 8 a.m. to 8 p.m. daily, from the receipt of the latest letter on the subject.

“The operators are also admonished to deploy this information through all their channels of communications, including websites, social media platforms, billboards, flash messages, text messages, Interactive Voice Response platform, radio jingles, newspapers advertisements and television commercials,’’ he said.

The director said that this notice served as a pre-enforcement notice, adding that failure to comply with it would attract appropriate sanctions.

He said the menace of unsolicited text messages had been a nightmare to subscribers. Ojobo said that the commission could no longer accept further excuses from network providers.

Etisalat, Cross River sign MoU on malaria reduction

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Nigeria’s most innovative telecommunication company, Etisalat, and the Cross River State Government in partnership with Mediatrix Development Foundation have pledged to forge a close working relationship in the fight against the scourge of malaria in the State.

The partners made this commitment on Thursday at the official flag-off of the Etisalat Fight Malaria Initiative and signing of a Memorandum of Understanding that will see them coordinate efforts and resources to eradicate the menacing spread of malaria in the State.

Speaking about the partnership, Ikenna Ikeme, director, Regulatory & Corporate Social Responsibility, Etisalat Nigeria, said the telecommunication company identifies a healthy populace as a precursor to achieving economic growth, hence the alignment of its business growth strategy with societal goals such as health.

“A nation can only be economically buoyant if it has a vibrant and strong work force, and a healthy population; hence our identification of health as one of our key platforms for Corporate Social Responsibility.

As we play our part in the creation of a healthier nation, we enjoin all stakeholders to embrace technology and innovation in the fight against malaria.” he said.

Also speaking at the event, Dr. (Mrs) Linda Ayade, wife of the Cross River State Governor and founder of the partner NGO, Mediatrix Development Foundation, expressed delight in the capacity of the partnership to help fill the existing gap in the fight against malaria by providing the much needed support to the State structures in the health sector.

“I believe this is the beginning of a rejuvenated fight to end malaria for good in Cross River State. We are delighted that our efforts to check the effects of malaria in communities is yielding results and has attracted Etisalat to partner with us to strengthen existing state structures in the health sector,” she said.

The Etisalat Fight Malaria Initiative would facilitate the setting up of 40 Malaria Clubs in primary, secondary and tertiary institutions across the state with a mandate to reach approximately 25,000 people in the rural and urban areas, create a Malaria Hub of 2,650 peer educators and 3,150 Malaria Champions within two years.

Etisalat Sues MTN Over Visafone Acquisition

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Telecommunication company, Etisalat Nigeria has sued MTN Nigeria and Visafone Ltd, challenging MTN’s use of the 800megahertz (MHZ) spectrum following the acquisition of Visafone. MTN closed the deal acquiring Visafone in January this year.

A statement released by Etisalat says the suit was filed in order to prevent the use of the spectrum by MTN at this time, as it will entrench the dominance of MTN in the retail data services market.

The statement released by Etisalat’s Head of Media, Chineze Amanfo reads in part;

“You will recall that MTN Nigeria was declared dominant by the Nigerian Communications Commission (NCC) in 2013 and remains dominant in the wholesale leased line and retail voice markets. The use of the 800MHz spectrum to deploy broadband services ahead of its competitors, particularly those who prior to MTNs purchase of Visafone, held similar spectrum bands as MTN, will further entrench MTN’s dominance in the Nigerian telecommunications sector”.

Paul Play Dairo Sues Etisalat for 200M

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Paul Play Dairo has filed a N200m lawsuit against Etisalat for using his song, Mosorire in its popular reality series, Nigerian Idol, without seeking his consent. In the suit filed at a Lagos High court in Nigeria and marked FHC/CS/581/2014, Optima Media Group was made co-defendant. Paul stated that the defendants had used his hit song, Mosorire, which he composed himself, to promote their TV show, Nigerian Idol in 2012 and 2013.

He alleged that during the course of the programme, a contestant was made to reproduce his song and sing it without his express permission as the owner of the song.

Read More: xwaizi.com