Nigeria: The sale of NITEL and M-tel are (finally) to be concluded by September

[this day] The sale of NITEL and its mobile arm, M-tel, will be concluded by September, Director General of the Bureau for Public Enterprises (BPE), Dr. Christopher Anyanwu, has said.

News Agency of Nigeria (NAN) reports that the premier telecommunications company was up for sale after three trials in the last five years, while the hiring of a management consultant, Pentascope, for the firm had led to its steady depreciation.

NITEL was first sold to International Investment Company (IIL) of London for 1.3 billion dollars in 2001, afterwards Orascom of Egypt offered 650 million dollars and subsequently, it was sold to homegrown investment company, Transnational Corporation (Transcorp) for 750 million dollars.

Transcorp paid 500 million dollars and it was given 51 per cent share in the company, while the Federal Government controlled 49 per cent.

A statement made available to the News Agency of Nigeria (NAN) in Abuja yesterday said that Anyanwu gave an assurance on the sale of the company at an investors' forum held in London on Monday.

"We will stake our integrity and honor to ensure that international best practices are followed and we will ensure a deal that is best for the country as well as the investor," he said.

On full disclosure of financial status of the company, Anyanwu said that government had nothing to hide in the operations of the two companies, promising to be open and transparent throughout the process.

In his remarks at the forum, Group Managing Director of Transcorp, Mr. Nick Okoro, assured prospective investors that the board and management of Transcorp would give maximum support to ensure quick and successful conclusion of the transaction.

"We are anxious to see the transaction to a successful close," he said.

Managing Director of NITEL, Mr. Kevin Caruso, said NITEL had full network coverage of the entire country, adding that the telecommunications company needed to be refurbished to realise its full potential.

The statement said that participants at the conference included Mr Herve Hascoet and Mr. Herve de Villechabrole, both of BNP Paribas of France, and Mr. Emeka Obi of Eleda Capital Partners, who is also an adviser to the transaction.



BPE - We'll Conclude NITEL Sale September