Etisalat has terminated its management agreement with its Nigerian
arm and has given Etisalat Nigeria three weeks to phase out the brand
in the country.

The decision of the Abu Dhabi owned telecommunications networks
resulted after the failure of its $1.7 billion loan talks collapsed.
Chief executive of Etisalat International, Hatem Dowidar said on
Monday that there was no need for the brand in Nigeria after the
collapse of the loan talks.

Nigerian regulators intervened last week to save Etisalat Nigeria from
collapse after talks with its lenders to renegotiate a $1.2 billion loan
failed.

Although Etisalat Nigeria, in a statement issued three weeks ago,
claimed that it had repaid 42 per cent of the loan.
“As at today, we can categorically state that the outstanding loan sum
to the consortium(of banks) stands at $227m and N113bn, a total of
about $574m if the naira portion is converted to US Dollars. This in
essence means almost half of the original loan of $1.2bn, has been
repaid.

“Etisalat continued to service the loan up until February 2017, when
discussions with the banks regarding the repayment restructuring
commenced,” Ibrahim Dikko, vice-president, Regulatory & Corporate
Affairs of Etisalat Nigeria said.

However, Etisalat International announced on Monday that it was
pulling out as all UAE shareholders of the company have exited and
left the board and management of the Nigerian brand.
Dowidar said discussions were ongoing with Etisalat Nigeria to provide
technical support, adding that it can use the brand for another three-
weeks before phasing it out.

Nothing has been said about how this will affect the network and its
integrity as million of Nigerians are subscribed to the network.
In June, the Nigerian Telecommunications Commission (NCC) assured
that the network’s integrity would not be compromised amid the loan
disagreements.
Director, Public Affairs of NCC, Mr. Tony Ojobo had said that the
commission’s attention had been drawn to the planned takeover by the
consortium of banks.

Ojobo said that the regulatory body was aware of the indebtedness of
Etisalat to the consortium.
According to him, the NCC in conjunction with the Central Bank of
Nigeria (CBN), has mediated by holding several meetings with the
banks, Etisalat and other stakeholders to find a solution.
“Regrettably, these meetings did not yield the desired results.
“The NCC wishes to reassure about 21 million Etisalat subscribers that
it will do all within its regulatory power to ensure that Etisalat
subscribers continue to enjoy the services provided by the operator.
“The commission has taken proactive steps to cushion the impact of
the takeover; this is without prejudice to the ongoing effort between
Etisalat and the banks toward a negotiated settlement.
“NCC wishes to reassure all stakeholders in the telecommunications
sector, in particular the subscribers on the Etisalat network, that it will
ensure that the integrity of the network is not compromised.’’

http://www.vanguardngr.com/2017/07/breaking-etisalat-pulls-nigeria/