A CONTROVERSY is brewing over the planned sale, through a negotiated method with a potential buyer, the Nigerian Telecommunications Limited (NITEL) and its mobile telephone subsidiary, M-Tel.

In fact, they may be sold to a Nigerian company soon, The Guardian has learnt.

The Bureau of Public Enterprises (BPE) announced on Tuesday conditions to be met by would -be buyers.

But Presidency sources are uncomfortable that with the new arrangement, NITEL may be sold as a carcass since the interim technical board put in place with a mandate to among others restore the former telecoms giant as a going concern to beef up the profile of the place selling is yet to properly take off.

The thinking in government circles is that the seemingly hurried privatisation exercise this time may pitch government's plan to revive the place against the BPE renewed process.

This, industry watchers think, may add to the lethargy of failures.

Disagreements among the seven members of the NITEL Technical Board may be the Achilles heel of the renewed privatization exercise.

Of the seven members of the board, BPE has two while the non-BPE officials are five.

The two BPE officials think NITEL should be sold as a carcass but the other five think differently.

While some of the other five members allege undercurrents in the proposed sales, to a Nigerian company, thus creating a big monopoly in the area of fixed lines services, BPE thinks differently.

The five members opposed to the hurried privatization think that BPE man have decided to jump the gun because it may have allegedly compromised on its set objectives to sell a NITEL that could meet up with competition despite all the odds against it.

A BPE source confirmed to The Guardian on telephone that there was no going back on the process of sales.

The source who chose not to be named also denied any undercurrent now or before.

Reminded that the board has five against two for BPE and the process, the official said that was immaterial, as "NITEL has become a dead wood that can hardly ignite any fire."

But a board member said last night that "BPE's refusal to allow for a technical and financial audit to reflect NITEL's true state before privatisation is suspicious and runs country to and is a mockery of due process and transparency mantra of the government. I think the BPE people have already compromised," he alleged.

The Guardian learnt that the game plan to sell NITEL to a particular company was played out recently during a trip of BPE officials to Dubai, United Arab Emirate (UAE) during which two former chieftains of NITEL and M-Tel, among others, met with BPE and officials from this penciled company.

The disagreement between BPE and the other five members of the board is also closely linked to the allegation of illegal meeting of the board without BPE's knowledge, as privatisation Secretariat.

But another board member said the only meeting they held was before the aborted inauguration sometime last month and it was specifically to fine-tune the process of revival and how it could be achieved.

One of such has paid off with the liquidation of outstanding debt owed the undersea cable or SAT-3 consortium to which NITEL is a signatory, to avoid NITEL, being cut off the international network.

Besides this, existing workers half pay has also been liquidated.

Presidency sources said, the BPE issue and the lethargy of failures of privatization of several government firms might top the agenda when enlarged National Council on Privatisation (NCP) meets today. No fewer than five ministers are members of the NCP. BPE is likely to present a position paper to the council.

The sale of 75 per cent share of NITEL/M-Tel to Transnational Corporation of Nigeria (Transcorp) in November 2006 was the third and perhaps the most successful of the past three attempts.

Even at that, the 75 per cent was reduced to 51 per cent because the new buyers could not meet the financial obligation according to the Share Purchase Sales Agreement (SPSA).

Transcorp took a $500 million facility from a consortium of banks led by UBA Plc.

That is part of the debt that the new buyers are likely to inherit.

On June 2, 2009, government cancelled the sales to Transcorp and named a technical management board, which set up network restoration and finance committees to repackage the comatose enterprise.

Besides the announcement of its proposed sale for the fourth time, BPE has also announced a vacancy for a new Managing Director, but whether this will supercede the position of the interim MD named by the board is another question.

Besides labour related issues, a debt overhang of over N20 billion, castrated assets and liabilities arising from unpaid workers arrears, pensioners' dues and third party debts, NITEL/M-Tel are said to be a shadow of its old self.

The BPE listed the key goals of NITEL privatisation strategy to include the ability:

. To attract a world class strategic investor with a proven capacity to develop NITEL and its services in both fixed and mobile telecoms;

. To maximise transaction value for Nigerian people:

. To make the transaction a landmark in Nigeria's efforts to modernize its economy and build an image of efficiency.

But the failed attempt of 2001, during which Investors International London Limited (ILL), a Special Purpose Vehicle (SPV) defaulted in paying the bid price of $1.317 billion, the fortunes of NITEL and the exercise to revamp it dwindled.

Orascom's bid of $256.5 million three years later created a more nightmare.

Even, the resort to management farm out by the appointment of Pentascope of Netherlands did not bring any succour. Then in November 2006, BPE sold NITEL to Transcorp for $500 million.

And according to a former managing director of NITEL last night, "this too has failed and the question many ask now is what is the fate of this new exercise."

can nigeria as a nation ever recover his most cherished telecom asset

Nothing works with the Nigerian Government and PDP leadership.

ideas78:

can nigeria as a nation ever recover his most cherished telecom asset

Not with the present set of leaders!

kok:

Not with the present set of leaders!

The bad thing is that they are not even willing to leave the stage, too bad.

Hello Everyone,

Going by the controversies, happenings and mis-happenings year-in year-out of the issue of Nitel/Mtel corporation, this has pushed me to ask one recurring question? Is there a hidden agenda that is making successful privatization of these companies impossible? I think Nigerians deserve an answer if not answers.
I noticed in 2001, IIL London company bidded for Nitel for around $1.317billion dollars, the Bid was rejected for the cause we are still waiting to know. Orascom Telecom came back with a paltry $256.5 million which also was rejected a poor bid though.
Lately we eventually have transcorp which Nitel/Mtel also proved too hot to handle.
Why as a country should we be giving out our prized assets like these to management firms (Pentascope Netherlands, Transcorp etc) that are incapable of reviving their own company rather than doing it for a global brand like Nitel.
My point is that the greatness of any nation doesn’t really lies(not by 100%) in the Human or Natural resources (see Niger Delta and what it has turned us to as a nation for years now) but in the institutions they are able to promote and project to her people and the outside world.
Consider Etisalat for instance, this is a priceless Telco from UAE for over three to four decades in operation a highly celebrated company, today it is a global brand moving beyond her frontiers and buying stakes in other countries telecommunication companies.
Another example is Bharti Airtel an Indian company founded just in 1985 but now has a revenue going to the tune of $6 billion dollars you would say every great company of the world is product of good accountability.
In 2001 August, when GSM was introduced into the country some operators came into Nigeria to sell and project their brands. See what has become of them today, Nigerians are indirectly celebrating them if not for anything but what they have achieved in terms of telecommunication business in Nigeria. Why all these can’t be replicated in the case of Nitel.
I bechanced to be a telecom professional, ever since I was in school watching closely the activities of this ailing company I see a brand that looks unmatched in terms of infrastructural developments and equipments( international gateway , SAT3 etc),Today Nitel and coy is now regarded as a carcass waiting to devoured (or should what should I have said) by an unnamed company yet.
It is high time we woke up as country and see the greatness that lies in us and our institutions and do what is right and what is best for our nation to be truly great and stop murmuring for not being invited for G-8, G-20 or for Obama snubbing us for Ghana.
Let’s come to think of it all of us cry of unemployment in all the fields. NITEL as a company if well managed is capable of absorbing so many jobless graduates in the country if not getting some of them back on the right track (because now you see graduates of electrical engineering teaching math in secondary schools).
NITEL, PHCN, NNPC to mention but a few are our national institutions begging for revival and accountability and not a national cake waiting to be sliced on the table of few individuals.

pls, we would like the name of the fool who has money to waste. i would like to know what the democratic govt of 9ja collected from the military that is still intact. men, you guys are deranged.

ideas78:

Hello Everyone,

I noticed in 2001, IIL London company bidded for Nitel for around $1.317billion dollars, the Bid was rejected for the cause we are still waiting to know.

Oga Ideas78: I think we all knew why the deal did not seal.

IILL could not pay the 90% balance of $1.3b after borrowing the down payment of 10% from First Bank. This led to the ouster of Bernand Longe, the reformist MD of FB at the time.

FG shuld return back my money since they have stolen our money 4rm mtel

sley4life:

FG shuld return back my money since they have stolen our money 4rm mtel

not sold yet?