BREAKING: CBN, NCC step in over telecom operator's N541 billion loan debacle

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March 9, 2017 6:58 PM

Executive Vice Chairman of the NCC Prof. Umar Danbatta met with CBN Governor Godwin Emefiele and his team at the Central Bank headquarters in Abuja.

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Earlier this afternoon, in a private meeting, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) agreed to lend their might to the reported takeover of telecom operator Etisalat by a consortium of banks.

On Thursday, March 8, 2017, reports of a takeover attempt on Etisalat by a consortium of foreign and Nigerian banks hit the news. Apparently, the banks made the move following the telco’s failure to service a N541 billion loan facility it received in 2015.

According to information made available to Pulse Tech, Executive Vice Chairman of the NCC Prof. Umar Danbatta met with CBN Governor Godwin Emefiele and his team at the Central Bank’s headquarters in Abuja.

ALSO READ: Nigerian banks are planning to take-over telco over N541 billion debt - reports

The meeting, which was requested by Emefiele, focused on finding ways around the debacle and proffering a solution that would be beneficial to all parties. Both regulators decided to invite the management of Etisalat and the consortium of banks for a round-table meeting.

A takeover of this manner could send the wrong signal to foreign investors — something the country cannot afford, especially while it goes through a recession.

Etisalat is the fourth largest network operator in Nigeria with over 21 million subscribers.

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