President Muhammadu Buhari
has mandated the ministry of
communication to provide
details of the recent
privatisation of the Nigerian
Telecommunications (NITEL)
and its mobile arm, MTEL, to
ascertain whether or not Nigeria
was short-changed.
Speaking to journalists Tuesday
after briefing the president on
the activities of the ministry of
communications, permanent
secretary Tunji Olaopa said the
president requested that a memo
detailing how the transaction
was processed be submitted
directly to him.
He said Mr. Buhari was
concerned about the possibility
of Nigeria not receiving a fair
value from the deal.
“The president was also
concerned about the liquidation
of NITEL. He is not opposed to
its privatization but he wants to
know… and he wants us to bring
a memo on how the whole
transaction was undertaken so
that he would know whether
Nigeria was short-changed,” he
said.
Mr. Olaopa said the president
was very concerned about the
whole issue of privatization that
is hindering investments in ICT
and said “that he will personally
champion this”.
“The president talked about the
potentials of the ICT sector in
generating employment,” Mr.
Olaopa said.
He said Mr. Buhari was also
concerned about the quality of
service from telecom operators
in the country.
The privatisation of the NITEL
and MTEL was completed in
December 2014 after the
financial bid was opened in
October 2014 by the Goodluck
Jonathan administration.
A consortium run by Skye
Bank’s chairman, Tunde Ayeni,
the founder of Sahara Energy,
Tonye Cole, and two other
companies, received the nod
from the Nigerian government
to take over the two companies
for $242.3 million (about N42.4
billion).
Their investment vehicle, NATCOM
Telecommunications, emerged the sole
bidder for the Nigerian Telecommunications
Limited, NITEL and Mtel.
NATCOM has as members NATSPACE
Telecommunication Investment Limited,
PCCW Global Limited, Prime Union
Investment Limited, Olutoyi Estate
Development & Services Limited, Legal
Resources Alliance & Co., Sahara Energy
Resources Limited, and LM Ericsson Nigeria
Limited.
Of the seven firms, Mr. Ayeni, profiled as a
businessman and lawyer on Skye Bank’s
website, owns three.
He is the founder and operator of Prime
Union Investment Limited, Olutoyi Estate
Development & Services Limited, and Legal
Resources Alliance & Co. There were
suggestions that he has link with NATSPACE,
but PREMIUM TIMES could not
independently verify that claim.
In December 2014, Mr. Ayeni led NATCOM
in its acquisition of NITEL/MTEL less than
two months after he also led Skye Bank to
buy Mainstreet Bank from Assets
Management Company of Nigeria, for N120
billion.
In 2013, Mr. Ayeni was the chief promoter
of Integrated Energy Distribution and
Marketing Company Limited, a group that
eventually bought the Ibadan and Yola
electricity Distribution Companies, DISCOs.
Mr. Cole is the owner of Sahara Energy,
while LM Ericsson is a subsidiary of
Swedish group, Ericsson.
NATCOM, which merges the seven firms,
appears to be a new corporate entity
created solely for the purchase of NITEL/
MTEL. Very little is known about the
consortium.
NATCOM emerged winner after NETTAG
Consortium, another little known group,
was disqualified for failing to attach a
$10million bid bond to its bid submission
as stipulated in the Request for Proposals
(RFP) to prospective bidders.
History of failed sales
Before the acquisition, four previous
attempts to sell NITEL failed.
Nigeria started the process of privatising the
national telecom groups in 2000 as part of
the government’s reform of the
telecommunications sector.
In 2001, the government tried to sell 51 per
cent equity to Investors International
London Limited (IILL) as the strategic core
investor.
There was also the failed management
contract by Pentascope in 2005, the aborted
Orascom Telecoms bid in 2005, and the
strategic core investor sale through
negotiated sale strategy to Transcorp that
was cancelled in 2009.
The last effort was the strategic core
investor sale in 2011, where New
Generation Communications Limited and
Omen International emerged preferred and
reserved bidders respectively.
Following the last failed attempt, former
Vice President Namadi Sambo-led National
Council on Privatisation, adopted the guided
liquidation strategy for the sale of NITEL/
MTEL.

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Ok

Film Tricks

Lamentation of a frustrated man

Buhari probing with no end result since 1814.

Seems there was single action carried out at federal level by govt officials that didn't have underhand dealings.
Some people eating the national cake without bothering about what happens when it is exhausted.

Thank God ma mtel sim still dey

Same Ayeni that donated billions to PDP campaign.

tell Buhari to ask Obasanjo about selling of NITEL and the money

Probe everywhere on papers.