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CBN halts telecom take-over, as Etisalat discloses $500m loan repayments
The telecom company disclosed that it had service its $1.2 billion up to the turn of $500 million before defaulting in February 2017 due to the foreign exchange crisis and Naira devaluation.
CBN Building
This directive was disclosed to have been directly issued by the Governor of the CBN, Mr Godwin Emefiele stated that the banks must seek the apex bank’s approval before taking further actions on the issue.
There is news that the Chief Executive of these banks have also agreed to address a press conference with the aim of stating clearly their aims, as against the publicly held opinion that there are in the move to take over the telecom company.
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Reuters also revealed on Thursday, June 21, 2017, that the Management of Etisalat Nigeria have disclosed that they have serviced their $1.2 billion up to the turn of $500 million before it defaulted in February 2017 due to the foreign exchange crisis and Naira devaluation during this period.
Mr Ibrahim Dikko, Etisalat Nigeria’s Vice President for Regulatory Affairs stated that the company is currently owing to the $575 million not $1.2 billion.
“The total amount of debt outstanding were $227 million and N113 billion ($358.73 million),” he disclosed Reuters on Thursday, June 22, 2017.
In 2013, Etisalat Nigeria approached a consortium of 13 commercial banks to secure loan facility to refinance a $650 million loan and funds its network expansion.
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Etisalat Nigeria has 20 million subscribers, according to Nigerian Communications Commission’s statistics report in March 2017, making it the country's number four mobile operator with a 14 percent market share. MTN Nigeria has 47 percent, Globacom 20 percent and Airtel Nigeria - 19 percent.
There are also speculations that the Telecom may have to change its name, as the parent company, Mubadala Development Company has expressed its intention to pull out of the company.
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