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International, Hatem Dowidar, told Reuters that the exit process became necessary given that the firm had been unsuccessful at converting some of its dollar debts to naira. The Nigerian Communications Commission and the Central Bank of Nigeria had recently intervened to save Etisalat Nigeria from collapse after it failed to pay the remaining $589m from a $1.2bn loan it took from a consortium of 13 banks. Before then, all the United Arab Emirates shareholders of Etisalat Nigeria, including state-owned investment fund, Mubadala, had exited the company and left the board and management. Etisalat, with a 45 per cent stake in the Nigerian business, had been ordered to transfer its shares to a loan trustee after it became obvious that it could not pay up the $589m debt of the original loan. However, with the current development, Dowidar said, “The Nigerian lenders may try to continue to operate the company until they find a buyer; or they may merge the company with the existing players in Nigeria.” He said it was tough to say what the lenders would do. The Etisalat CEO added, “The brand agreement in either of these two scenarios won’t be a long-term thing, so we take out the brand; in the long term, Etisalat won’t be in Nigeria.” He had earlier told Reuters that discussions were ongoing with Etisalat Nigeria to provide technical support. “There’s a new board and we are not part of that company. We have sent our termination letter for the management agreement,” Dowidar said of the ongoing discussions with Etisalat Nigeria. According to him, the parent company (Etisalat) has written down the value of the Nigerian business on its books and that transferring its 45 per cent stake to the lenders after loan renegotiation talks collapsed has no impact on the group. When asked whether Etisalat would consider entering Nigeria again, he said, “The train has left the station on that one. Being in that market as an investor…are we willing to risk more money compared to the reward for the long-term?” Meanwhile, most Etisalat Nigeria outlets in Lagos were either shut or almost empty when our correspondent visited some of them on Monday, an indication that the telecommunications company is gradually exiting the country. Of the 11 outlets visited by our correspondent in Lagos, six of them did not open for business, while the other five witnessed skeletal activities. The Etisalat Experience Centre at the Ikeja City Mall received only two subscribers between 9am and 1pm on Monday, the visitations register showed. Previous visitation registers of the telco from January to March showed that not less than 50 persons, on the average, visited the centre for one transaction or the other in the morning and afternoon hours daily. There were only two employees of the telecoms firm on ground and one of them, a contract worker, who spoke on the condition of anonymity, said, “We somehow knew it was going to come to this because since the news appeared in the media in March, the subscribers have been pulling out gradually. “The number of those who come to the outlet on a daily basis, and other outlets as we were told, has also started reducing gradually. The company is no more funding the operation here as it used to do.” http://punchng.com/etisalat-begins-exit-from-nigeria/ |
This is sad. Yet not even a sector is developed. If China should get such fund, I'm sure you will marvel at capital projects they will use it for. |
While Nigeria’s rising indebtedness is generating ripples as to the sustainability and the interest element, the Federal Government has given details of some of the foreign loans it has raised in the last two years, expended on programmes rather than development projects, EVEREST AMAEFULE writes The Federal Government obtained about $4.8bn from various foreign sources in the last two years, The PUNCH has learnt. The loans were expended on various programmes. The Economic Governance, Diversification and Competitiveness Support Programme was the highest single financing item on which the government expended $600m of the borrowed funds from external sources in the last two years. Responding to an enquiry from The PUNCH under the Freedom of Information Act, the Federal Government, through the Debt Management Office, said it received $600m from the African Development Bank for the EGDCSP. The AfDB said on its website that the programme would help the government to create the fiscal space to facilitate a smooth implementation of the government’s budget, support fiscal and structural reforms, and improve the targeting of social sector spending to protect the most vulnerable segments of the population. While the first tranche of the programme costing $600m was approved in 2016, the second tranche costing $400m is expected to be approved this year to take the total value of the loan to $1bn. Another major loan of $500m came from the International Bank for Reconstruction and Development for Nigeria’s development finance institutions. The item also attracted $400m from the AfDB in addition to another $400m secured from the African Development Fund. The Federal Government secured $500m from the International Development Association, an arm of the World Bank, for the Saving One Million Lives, which is a scheme to expand access to essential primary health care services for women and children. Three states, Rivers, Ogun and Lagos, benefitted from the foreign debts secured in the last two years. The Federal Government secured UA3.3m ($5.06m) and $200m for the Urban Water Sector Reform and Port Harcourt Water Supply and Sanitation projects, and $33.17m for the Ogun State Urban Water Supply Project. It also obtained $100m from the AFD for the Lagos Integrated Urban Development Project. From the International Development Association, the Federal Government secured $200m, $70m, $140m and $70m for the Polio Eradication Support Project, Higher Education Centres of Excellence Project, Community and Social Development Project, and African Higher Education Centre of Excellence Project, respectively. Another $140m was obtained from the World Bank for the Community and Social Development Project. The Polio Eradication Support Project received another $200m from the IDA, while the Nigerian Partnership for Education Project also received $100m from the same organisation. From the Export-Import Bank of China, the Federal Government obtained $325m for 40 plants under the Parboiled Rice Processing Plant Project; and $280m from the AfDB for the Enable Youth Nigeria Programme. Also from the AfDB, the Federal Government obtained $250m for the Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Programme. From the IDA, the government also obtained $200m for the Multi-Sectorial Crisis Recovery Project for North Eastern Nigeria and $90m for the Regional Surveillance Systems Enhancement. The government’s response to The PUNCH’s enquiry, which was directed to the Minister of Finance, Mrs. Kemi Adeosun, did not indicate how far it had gone in implementing the projects for which it obtained the foreign loans in the last two years of the current administration. Experts have at various times expressed fears that governments across the country borrow funds that are not tied to projects but to finance routine expenditure such as salaries and overheads. While this may be true of local debts, foreign agencies hardly lend without knowing what the funds will be utilised for. The response of the Federal Government to PUNCH’s enquiry showed that local debts were not tied to any specific projects but warehoused in the Central Bank of Nigeria for financing budget deficits. Some stakeholders say the government should only borrow to finance capital projects and infrastructure that have the capacity to generate funds for both debt servicing and repayment of the principal. This is hardly the case as most of the debts are spent on programmes and routine expenses. http://punchng.com/how-fg-spent-4-8bn-foreign-loans-in-two-years/ |
Nice thread Why are there no valuable contributions on political and crime related threads too aside from name calling and checking? Cc Seun Lalasticlala Mynd44 |
Vote out incompetence, if a party is not working. Vote them out. The only power Nigerians have is the thumb. If we keep switching these people. They will be back to their senses in no time. Just like I saw a student of Lautech here on nairaland begging APC government to reopen Lautech and after his plea, he ended with APC all the way. Just imagine! |
The candidate of the Peoples Democratic Party in Osun West Senatorial District by-election, Ademola Adeleke, on Saturday defeated the All Progressives Congress candidate, Senator Mudashiru Hussain, with total votes of 97, 480. Adeleke won nine out of the 10 local government areas.http://punchng.com/adeleke-defeats-aregbesolas-candidate/
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desproof:Stop arguing blindly. It's the same thing that was amended yesterday. Get the video and watch |
Where them dey, enemies of progress. WEREPE fall on all of you! |
Phones and Laptops. You won't regret. |
Badonasty:Why should Arabic be studied in Nigeria? The next language we should be studying after English language is French. |
Still available |
Menabari:So having sex with your wife before going to bible study on Tuesday is also a sin abi? |
swiz123:What do you mean by Naughty ones? |
You will notice i've not been here for sometime. I just returned from my village and i'm really LOADED. I wont say much, the wise ones will just overlook this post. |
These Phones are available for sale and are very new. The buyer will also get a receipt for any of the purchased phones. Samsung Note 5 = N160,000 (USA used) Samsung S7 = N170,000 Samsung S7 Edge New = N220,000 Other Android Phones too are available including laptops. Whatsapp 08189436231
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How much? |
registration:Aiye mi! |
beautiful232:She stays beside my house. I won't say much |
beautiful232:She stays beside my house. I won't say much |
Goooooaaallllll Iya yin |
missnawty:Why you come sit down for ground? |
azimibraun:If you watch closely, I believe better offers came in and the cash and profits involved is more than what the present local people have to offer. All join it's a nice excuse. |
sambisavoice:They won't even accept you. Your BVN will knock you out |
rose54321:1stly Ekiti deserves an independent state if you want to judge by "being small". Ekiti state is very big in terms of landmass and they were even being cheated by Ondo State then likewise what is happening in Abeokuta and Ijebu. 2ndly, Ambode is doing a good job in Lagos and I expect him to even do so much more. Fayose is also doing his best here in Ekiti. I see no reason why they make noise about his eating around, dats his life. They should be more concerned about Fayemi that did not commission a single project in Ekiti but left the start in bug debt. 3rdly, Fayose was accused of the stomach infrastructure programme. Is there any difference between Stomach infrastructure and feeding of school children daily? Just change of name hun? BTW Fayose has some workers to pay. |
tainobaba:Yes it is, I also suggest you pay up on time. |
chrissyjay:Most civil servants don't work on Saturdays |
ApolitiCal:Seriously you made no sense. Tfare to Ado-Ekiti is not expensive at all. |
MetaHuman:What is your definition of Rampant? How many coup has been experienced in the last 5 years in Africa? |
MetaHuman:Stop blaming Africa everytime. Same thing almost happened in Turkey last year. |
After all seeing dis now, some will come here and be shouting; "Nigerians can eat anything, ake it to the Zoo" and they eat bush meat outside oh. Awon Hypocrites. Modified: Example: 11th post below this. |
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