business

THREE BANKS TOOK OVER ETISALAT NIGERIA


THREE BANKS TOOK OVER ETISALAT NIGERIAETISALAT

Three Nigerian banks (Access bank, Guarantee Trust bank and Zenith bank) took over Etisalat

Nigeria. The communication company allegedly fails to repay a loan of over N541bn it secured from the consortium in 2015.

A source at NCC disclosed that the commission tried its best to ensure the situation didn’t degenerate to taking over of the telecoms company but that pressures from the banks became so intense it had to allow the action.

The report says the loan involved a foreign-backed guaranty bond and was given to Etisalat to finance a major network rehabilitation and expansion of its operation in Nigeria.

After failing to service its debt since 2016, the banks reported the company to the Central Bank of Nigeria and communications sector regular NCC.

Etisalat blamed its inability to fulfil its obligation to the banks on the current economic recession in Nigeria but the banks replied that Asset Management Company of Nigeria regulations demanding immediate cut down on the rate of their non-performing loans give them no other option.

Vice President for Regulatory Affairs at Etisalat Nigeria, said Etisalat missed payments due to an economic downturn in Nigeria, currency devaluation and dollar shortages on the country’s interbank market.

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