After fourteen years and five failed attempts to sell the Nigerian Telecommunications Limited, the Federal Government on Tuesday finally handed over the beleaguered first national telecommunications company to new core investor, NATCOM Consortium.

At a ceremony attended by notable persons in the privatisation circle, the Bureau of Public Enterprises handed over instruments of ownership and licences of operation to the Chairman of the NATCOM Consortium, Mr. Tunde Ayeni, who said over $1bn was required to revive the company.

Speaking at the ceremony, Vice President Namadi Sambo, who chairs the National Council on Privatisation said the formal handover was a clear indication that where there is focus and determination, there is a way.

Sambo who was represented by a member of the technical committee of NCP, Mr. Emmanuel Amadi, listed the several failures in the past and added that the success at this time was a reflection of the determination of the NCP and the BPE to increase competition in the telecommunications industry.

He said, “It was the realisation that Nigeria will not attain the desired economic growth without adequate reforms and liberalisation of the telecommunications sector that informed commencement of the telecoms sector reforms in 2001.

“These led to the attempted privatisation of NITEL and M-Tel through strategic/core investor sale to Investors International London Limited. Unfortunately, that flagship transaction failed as the preferred bidder could not meet the deadline for the payment of the purchase consideration.”

He continued, “Failure of first strategic investor sale led to the execution of a management contract with Pentascope in 2005. The management contract did not improve the operational and financial position of NITEL and M-Tel and was terminated.

“Orascom Telecoms emerged the highest bidder with $256m during the second privatisation attempt. Its bid was however rejected by the Federal Government as it was below the reserve price.”

NCP in 2006 adopted the ‘willing buyer-willing seller’ strategy. The strategy which threw up Transnational Corporation as the core investor was adopted to shorten the transaction period since the financial position of NITEL was deteriorating.

Following the inability of Transcorp to turn around the fortunes of NITEL, the NCP on June 1, 2009 revoked the sale of the telecommunications company and its mobile subsidiary.

In another strategic/core investor sale in 2011, both New Generation Communications Limited and Omen International Limited that emerged preferred and reserve bidders could not pay the purchase price and the transaction had to be cancelled again.

Consequently, NCP approved the privatisation of NITEL and M-Tel through guided liquidation. It also on November 11, 2013 approved the appointment of Chief Olutola Senbore as the liquidator of NITEL/M-Tel.

At the financial bid opening on December 3, 2014, NATCOM emerged the preferred bidder with an offer of $252.25m bid price.

NATTAG which had been prequalified by BPE to participate in the process was disqualified as a result of the failure of the company to include a $10m bid bond as had been prescribed in Request for Proposal document.

Speaking at the handover ceremony, Ayeni said immense gaps and opportunities still exist in the Nigerian telecommunications market despite the competition in the industry.

According to him, with a good team of investors and management, NATCOM was ready to make the difference required to succeed. He indicated that the company would roll out services soon after rebranding.

http://www.punchng.com/news/fg-hands-over-nitel-to-core-investor/

Desparate to put a smith on the past mudded with corruption. Right. That will definitely not stop our General from probing this guys fvckups ... Who wanna bet?

ok--they say they wan reverse privatization of PHCN, Jonathan still dey sell NITEL to core (kore) investor.

No need, because we go stabilise this sector, we go reverse everything...PHCN sale, NITEL sale, CBN governor sack, IG sack, Amokachi's sack, DG SEC's sack, Deputy Governor Ondo sack, every sack since the last five years. We need to stabilise everything...


“Orascom Telecoms emerged the highest bidder with $256m during the second privatisation attempt. Its bid was however rejected by the Federal Government as it was below the reserve price.” NCP in 2006 adopted the ‘willing buyer-willing seller’ strategy. The strategy which threw up Transnational Corporation as the core investor was adopted to shorten the transaction period since the financial position of NITEL was deteriorating. (AFTER MTN < ECONET <GLO don take over everything)

At the financial bid opening on December 3, 2014, NATCOM emerged the preferred bidder with an offer of $252.25m bid price. (AFTER NOTHING REMAIN AGAIN)

Nonsense action.

cc: lalasticlala

Tunde Ayeni again?

sweetguy26:
Tunde Ayeni again?

Where are we going in this Country? The same Tunde Ayeni that donated 5billion naira to Jonathan /Sambo re-election is now the owner of 'our NITEL'

Orascom paid 256million dollars in 2006 but the Nigerian Govt refused selling it because it was below the reserve/value price, now after 9 years they now sold NITEL for 252million dollars! 4million less than the 2006 price. Which way Nigeria?

Nice move

Haha! Why all these rush rush extra-time thing?

gateleo:


Where are we going in this Country? The same Tunde Ayeni that donated 5billion naira to Jonathan /Sambo re-election is now the owner of 'our NITEL'

Orascom paid 256million dollars in 2006 but the Nigerian Govt refused selling it because it was below the reserve/value price, now after 9 years they now sold NITEL for 252million dollars! 4million less than the 2006 price. Which way Nigeria?

^^^
Bros, think of corruption and nepotism, you can't be far from the truth..

Lovely. Would like to see a return of the "land lines".

gateleo:


Where are we going in this Country? The same Tunde Ayeni that donated 5billion naira to Jonathan /Sambo re-election is now the owner of 'our NITEL'

Orascom paid 256million dollars in 2006 but the Nigerian Govt refused selling it because it was below the reserve/value price, now after 9 years they now sold NITEL for 252million dollars! 4million less than the 2006 price. Which way Nigeria?

I dey talk am like play like play GEJ fit enter jail o.

Well make I nor prophesy this one before prophecy go catch me like Suleiman

Make I go dust my Mtel sim....oh! Its inside my Trium.....there is hope after all

We'll just wake up one day to find out that nigeria has been sold..

make i book space

lntresting times

Season of change
It shalll be remembered dat GEJ almost sold Nigeria

Thieves in action......... Every secret sales of public assets that didn't follow due process will be rescinded and no money and I mean no chin chin will be return back. Warning only to the Investors that worked for their hard earned money.

Jona oooo
Nigeria will definatley never forget you in an hurry, this man is in last minute to destroy Nigeria by all means.

God help Buhari

[size=15pt]Old news.

NATCOM won the bid about a year ago and had since practically taken charge.
Well, maybe, this is a mere ceremony.[/size]

good

Who will benefit?
Who will suffer?
If NITEL was still in existence, who knew?
I wish NATCOM the best of luck in reviving this company.
To those against the 'move', the main issue isn't praying and asking God to take away the evil power of the devil. The issue is if he takes it, will you accept the power instead?

going! going!! ...

That's better.

gateleo:


Where are we going in this Country? The same Tunde Ayeni that donated 5billion naira to Jonathan /Sambo re-election is now the owner of 'our NITEL'

Orascom paid 256million dollars in 2006 but the Nigerian Govt refused selling it because it was below the reserve/value price, now after 9 years they now sold NITEL for 252million dollars! 4million less than the 2006 price. Which way Nigeria?

wetin even surprise me na d way govt begin hyperactive after election.everyday something new. Jona no wan hear oh

lol

So NITEL still exists, thought they became extint ages ago......

xpac01:
Desparate to put a smith on the past mudded with corruption. Right. That will definitely not stop our General from probing this guys fvckups ... Who wanna bet?

You guys are gradually turning nairaland into a gossip point