Group Opposes Sale of NITEL
From Chuks Okocha in Abuja, 07.05.2009

A coalition of northern politicians and bureaucrats, under the aegis of Unity Forum, has opposed the planned sale or privatisation of NITEL Plc, saying the sale would be a great de-service to the nation.
Unity Forum is an association of former ministers, politicians, and bureaucrats from the north, with a former permanent secretary, M.M. Abdu, as chairman. Other members of the group include Muritala Aliyu, formerly of the Power and Steel Ministry; Umaru Dembo, minister under General Abdulsalami Abubakar, Mr. Buba Galadima, and Hon. Tanko Abari.
In a statement signed by Chairman of the Unity Forum, Abdu, the group said the privatisation or sale of NITEL will expose the nation's telecommunications to ridicule, as the services of the GSM operators cannot provide the needed social services which NITEL normally provides.
According to the group, the services of the GSM operators are "filled with excess charges and huge profits to the coffers of the operators. In spite of the huge profits garnered by these operators, there is less spending on infrastructural development and improvement in our country. "
"With this in mind, it is apt to advise the Federal Government not to privatise NITEL facilities. Rather, it should invest in building national optic fibre transmission grid that will serve as hub for all Mobile Phone Operators (MPO).�
"This will generate an annual income to the budget. The national grid is part of our national interest and security system. This cannot be operated by a private individual rather by a joint task force, representatives of all security agencies on the board." the statement said.
The Unity Forum further said, "As applicable worldwide, telephone lines for the Military, National Emergency Agency, Civil Defence, Hospital Emergency and Fire Brigade etc is free for the above mentioned. Through this means there will be free internet to facilitate Information Technology Education which is the key to modern know how and education."
The group accused GSM Operators of reckless planning, saying, "As at today, each mobile phone operator is digging holes with tiny optic fibres all over the country without planning and coordination which make any development effort more expensive and troublesome.
The statement further said, "In addition, it impacts negatively by cutting across farm lands and leaking of sensitive information that bothers on national interest through this means. Also, the mobile phone operators are hosting antennas, battling each other and spoiling the beautiful landscape of Nigerian cities and rural areas."
The statement from the Unity Forum called coordination in the works of the GSM operators to the extent that communication antennas should also be hung by the successor of NITEL who will compel all GSM operators to use one mast in each location instead of having one for each.
"This will reduce the running cost and health hazard created by the emission from the mast, as well as the noise pollution created by the several masts close to each other. In the developed world, communication is the best earner of income to the treasury. These masts can be used for radio transmitters and cable network operators."

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At the end of the day, these clowns are prescribing Nitel not to be privatized. They want our dead, incompetent, irresponsible and hopeless government who has shown us nothing for over 48 years to take over Nitel.
These bastards are not looking out for anybody but themselves. If government takes over, it will automatically create more opportunities for these fools to steal more of our money.
These greedy pigs need to stay home and allow private sectors to continue to make things happen in this country.
This is the same government that spent over $17b to improve our power supply system and has absolutely nothing to show for it today.

This action is nothing but bad belly. They can not produce, but they team up to hate private sectors that continue to make things possible in this country.

What services Nitel offers in Nigeria that is not matched by a private company with affordability and proper service?

I think the aim should be to make Nitel autonomous, and not necessarily privatize. It should be run like any other company, except with the government being majority shareholder.
A pure capitalist/market driven industry has severe long term short comings, as it will always head towards a monopoly or oligarchy, which is usually bad for the consumer.

I'm even suprised nitel hasn't been sold yet. . .
Nitel and NEPA are poster boys for the corruption ridden nigerian infrastructure.

biina:

I think the aim should be to make Nitel autonomous, and not necessarily privatize. It should be run like any other company, except with the government being majority shareholder.
A pure capitalist/market driven industry has severe long term short comings, as it will always head towards a monopoly or oligarchy, which is usually bad for the consumer.

I was going to post something along those lines before.

The problem here is while I agree with you, most things work upside down in Nigeria. The government currently runs and owns nitel and what do they have to show for it? Like someone rightly pointed out in my opinion, it is a front for embezzling money. Private sector should be allowed to come in for the short run. A government intervention may however be needed to avoid exploitation in the long run.

Mobile phones is a good example that fits into this - Before privatisation, how many people had mobile phone in Nigeria? But look at how the changes came in fast and quick once it was left to the hands of private companies.

ElRazur:

I was going to post something along those lines before.

The problem here is while I agree with you, most things work upside down in Nigeria. The government currently runs and owns nitel and what do they have to show for it? Like someone rightly pointed out in my opinion, it is a front for embezzling money. Private sector should be allowed to come in for the short run. A government intervention may however be needed to avoid exploitation in the long run.

Mobile phones is a good example that fits into this - Before privatisation, how many people had mobile phone in Nigeria? But look at how the changes came in fast and quick once it was left to the hands of private companies.

That why I suggested that government be a majority share holder, and not just the federal givernment, but also state governments. For example , we can have 20% held by FG, 31% held by the states, and the rest held by the public (you could actually limit the government shares if one pegs the total number of shares any entity can control directly or by proxy) .

I think something similar would also be viable for NEPA, though with a bit of 'regionalization' at the generation and distribution levels, while the transmission is maintained by a single national entity.

We can't on the excuse of our history of upside down implementations take decisions that we know are inherently flawed. I prefer we take the right decision, and then worry how to carry it out properly. I think the system can work if enough checks and feedback are incorporated.

biina:

That why I suggested that government be a majority share holder, and not just the federal givernment, but also state governments. For example , we can have 20% held by FG, 31% held by the states, and the rest held by the public (you could actually limit the government shares if one pegs the total number of shares any entity can control directly or by proxy) .

I think something similar would also be viable for NEPA, though with a bit of 'regionalization' at the generation and distribution levels, while the transmission is maintained by a single national entity.

We can't on the excuse of our history of upside down implementations take decisions that we know are inherently flawed. I prefer we take the right decision, and then worry how to carry it out properly. I think the system can work if enough checks and feedback are incorporated.

Interesting. I am not so sure as to how the offer would look to potential investors. It is well known that government having a stake in a business - especially in developing countries - do not make an attractive business proposal. So the idea of having "two units" of government having shares may not be ideal to some. I suppose this is down to the instability that plagues all developing countries etc.

Also, I am not so sure how this would work in practical terms, do we have any existing business models using something like this? It would be interesting to see what their book says and the actual physical development and assets that have amass as a result.


As for NEPA, I think the biggest issue in my opinion is lack of maintenance etc. Once we by-pass this and have new installation made, then yeah we can look at all sort of proposals.

The quickest to come to mind would be Deutsche Telekom of Germany, which was created in 1996 from the 'privatization' of the government owned Deutsche Bundepost. The government still holds like 30% stake in the company.

China's main telecom companies are all state run, but that is hardly a good template given the government system in china.

One could also look at BTs gradual privatization, with the initial sale in 1984 being of only 50.2%, with the rest being sold a decade later.

Oh sorry. I was actually asking about Nigeria. I personally wont have problem buying shares on investing in those nation you gave as examples. However, are you willing to part with your millions of naira if similar scheme is in Nigeria? I personally wont due to the nature of how things tend to work upside down. [Even with assurance that it wont]

In Nigeria, I can only think of the NNPC joint ventures, where NNPC has 60% but the oil company is the operating partner, yet its a different sector, and essentially a different ball game from the Nitel situation.

Even without precedence, I think their is enough merit to the argument to give it a try, as opposed to the failed privatizations that has been recurring with Nitel.

NITEL has been pravatized before, Transcorps as the major share holder. But unfourtunately they couldnt run the company, now the goverment has refunded their money and looking somewhere else. But I heard GLO is eyeing it. Maybe that would work, since he is the familiar with the buissness and territory (NAIJA)

Other members of the group include Muritala Aliyu, formerly  of the Power and Steel Ministry; Umaru Dembo, minister under General Abdulsalami Abubakar, Mr. Buba Galadima, and Hon. Tanko Abari.

Could someone please ask these thieves what they know about telecommunication and what they've done for this nation throughout their hopeless lives?

Nigeria is 48 years old and the only single thing that fairly works in this country is telecommunication; this same telecommunication also happens to be handled by private sector.
So what the hell are these idiots talking about?

Reading the article, they surely sound like they love their country, but the truth is: once private sector takes over anything that is poorly controlled by the fed government, it means that is the end of stealing in the name of serving the fed govt or country. It also means the end of fake contracts to friends and family.

I will buy what ever these junkies are selling if they are kind enough to list one single thing that is currently being controlled by the fed govt, that works.

These guys are living in the past. They are having nostalgic feelings about the days when only "big men" could own telephone lines.

The death woods in Nitel don't what it sold for the fear of lost of job and contract. While GLO, Mtn etc are expanding into other African counties, Nitel can service even a state in Nigeria.

Can't these people reason and talk intelligently for once? Government should not sell NITEL that is about breathing its last. Instead of them to be begging people to come over and acquire NITEL so that the company would not go down finally, they are here mouthing rubbish simply because of the patronage they intend to receive from a government owned company. Apart from SAT 3 and some few landlines, the company presently does little or nothing and yet other telecoms companies in the country are making mega bucks and this is an industry where NITEL is supposed to be at commanding height. What rubbish!!

is it only nitel thats not working. the whole of nigeria should be privatised. what a hopeless bunch.

Am just wondering what is wrong with some old people who have destroyed their lives and all they want to do now is to destroy the whole country.'Unity Forum' my foot.

De-service to whom i may ask? exposing ourselves? very selfish statements i read from unity forum. Free internet without electricity, pls where are we going to?

They wrecked Nitel/mtel and even have the gutts 2 critize other operators that have refused to die?

GOD please have mercy on this nation,its even the audacity that these people have to come out and give stupid speeches that baffles me.

Why are they finding it difficult to privatise NEPA and NITEL? I believe it all boils down to the corrupt tendencies of our leaders

funny indeed

sley4life:

funny indeed