NCC, CBN has saved Etisalat from the jaws of banks it owes - for now

Following reports that a consortium of Nigerian banks were attempting a take-over of telecom operator Etisalat, the NCC and CBN decided to play umpire over the matter and called a meeting of all parties on Friday last week, as we previously reported.

The result of that meeting was reprieve for Etisalat, the telecom operator in trouble over a N541 billion loan from 2015 which it failed to service. The NCC and CBN successfully urged the telco’s creditors to take the take-over bid off the table, suggesting new negotiation over the matter instead.

According to a statement from the NCC, the meeting had all the parties involved in the matter in attendance with all parties agreeing to take concrete action which would see a less volatile resolution. The meeting held at the CBN office in Lagos.

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

CBN Governor Godwin Ememfiele chaired the meeting and pushed the regulators stance on the matter. The NCC, for its part, said it was concerned about Etisalat’s 23 million subscribers, adding that a take-over would throw the entire sector into disarray.

All parties will meet again on March 16 to map a payment restructuring path that would keep all parties happy as both regulators (CBN and NCC) emphasized the need for a less hostile solution as the current situation could dissuade foreign investors in a time when the country was facing its worst recession in recent memory.

Pulse Tech will keep you updated as the situation unravels.