Breaking!!! CBN and NCC Save Etisalat Over N541.8billion Loan

The Central Bank of Nigerian and the National Communications Commission have come to the aid of Etisalat Nigeria following reports of a loan facility.

Following the report that some foreign and Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank are set to take over mobile operator, Etisalat over a loan facility totalling $1.72 billion (about N541.8 billion) obtained in 2015, the Central Bank of Nigeria and Nigerian Communications Commission have intervened in order not to put over 20 million subscribers of Etisalat at risk.

A press report by the NCC has addressed the issue:

Press Release:

CBN, NCC STEP IN OVER ETISALAT LOAN

After a meeting Thursday afternoon in Abuja between the Executive Vice Chairman of the Nigerian Communications Commission, NCC, Prof. Umar Danbatta and the Central Bank Governor and his team, a decision was reached to intervene in the loan issue between Etisalat Nigeria and a consortium of commercial banks.

The meeting which held at the Central Bank Headquarters in Abuja was convened by the financial regulator at the instance of NCC, the telecom regulator, to further deliberate on how best to stave off the attempt by the banks to take over Etisalat. At the end of the meeting, the Central Bank of Nigeria agreed to invite Etisalat management and the banks to a meeting tomorrow, Friday, towards finding an amicable resolution.

The NCC as a regulator of the telecom industry had moved quickly to intervene earlier in the week by reaching out to the CBN convinced of the negative impact such a bank take over will have on the industry. NCC was worried about the fate of the over 20 million Etisalat subscribers and the wrong signals this may send to potential investors in the Telecom industry.

Signed
Tony Ojobo
Director, Public Affairs
Nigerian Communications Commission
Thursday, March 9, 2017.