This new development is coming after the telecom regulator, the Nigerian
Communications Commission, NCC, tried a couple of times to mediate issues between
the telecoms company and the banks without results.
According to sources, Etisalat obtained loans amounting to $1.72 billion - from a
consortium of foreign and Nigerian banks in 2015 to facilitate reconstruction and
expansion of Etisalatís network operations here in Nigeria.
The loan facility totaling $1.72 billion (about N541.8 billion) involving a foreign-backed
guaranty bond, was for Etisalat to turn around its network and expand its operations in
Nigeria. However, the banks claimed that Etisalat had failed to service the debt as
agreed since 2016.
As claimed by the banks being pressured by the Assets Management Company of
Nigeria (AMCON) to reclaim the loan by any means.
Base on anonymous reports from some NCC officials, the NCC as the regulatory body
for telecoms in Nigeria, has done all its possible best, interacting with the Central Bank
of Nigeria (CBN) to see that the banks would not have the right to take over the distress
An unidentified Etisalat official blames their inability to pay back the incurred loan on the
current recession in Nigeria. The banks said to be involved in the takeover are Access
Bank, Guaranty Trust Bank and Zenith Bank.
Emirates Telecommunications, EMT Group trading as Etisalat, own a 40 per cent stake
in its Nigerian affiliate, which accounts for about 3.7 per cent of the groupís revenue in
The respective banks, according to source, said they were most unhappy with Etisalat
because the telecom giant could not present an independently verifiable proof that their
volume of business went down by the magnitude that could put significant loan
repayments in jeopardy.
However, reports are that Etisalat Nigeria is in talks with the local banks to renegotiate
terms of the $1.72 billion loan it took four years ago to expand its network in the country
after missed payments.