Nawa oo

Where is Nigeria heading to??

MA SALAAM ETISALAT YOU HAVE DONE YOUR BEST

It is finished. Nigeria as a country is a failure.

What happens to the free 10mb I get after each recharge.

Etisalat,helping ma life since buhari took over..

They failed

Service a loan and get an agreement for possible tenure extension .

Etisalat has no excuse, the inability to service the loan is their fault, no sentiment..

If the forex is low,won't they be happy?

After all, businesses move with current situation..

Goldenheart:
Upon all their stinginess, them still cast.

Them cast just like ponzi scheme

All these are written in the Facility agreement, it was read and understood by both parties before the parties involved apexed their signature, the banks are there to make profit and this is one of the ways banks makes profit and that's why you need to do your SWOT Analysis very well before you make business decisions. This should serve as a learning event for investors.
Mind you this is not peculiar to Nigeria only that is how it works anywhere in the world except for JAIZ BANK that operates Islamic banking their facility is more investor friendly if you borrow from them and run at loss you will only pay back the principal they will forgo the interest.

it is business as usual. No fret. Even if name changes, the staff are still at work. doing same work.

What will now happen to my 08099995522?

friday2011:
Because the exchange rate wasn't favourable?, what if it was the other way round, I mean in favour of ETISALAT, won't they repay at the current exchange rate.

Buhari fall on them.

Exchange rate? Would have made more sense if he said interest rate.

What will now happen to my 08099995522?l

























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ahhh!wait o

How are they paying twice, did they borrow the money in dollar or naira?

Oh! My BVN. Abeg etisalat hang on make I receive text for npower online test before u die

APC fall them

Eti to se ila, oma se ooo

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Duara dullard cause it!!

Pls they should wait let me exhaust my 1TB annual data plan. It's remaining 652GB

AK481:
Not twice the rate they borrowed,maybe thrice.

Buhari and his economic team caused it

How?

Ok bring out your calculator.

1.2bn$ borrowed at 150 naira to be payed back in 2years time=180bn naira to be paid back.

Let's say etisalat made an additional profit of 100bn naira that's 280bn naira right!.everybody rejoices.

Loan expires at the late 2016 dollar =504 naira,to pay back =603bn naira plus loan service charge say 630 billion to pay back.


What on earth can save them from not collapsing?

They made good profit for their business.

But it still wasn't enough.
If u look around and u want to be truthful,most company almost died or died because of Buhari.

Hepocrisy at its peak,

scary figures there

Wait o...... come to think of it........ Dangote has this kind of supercilious immunity and advantages when it comes to forex (I. e) He gets dollars at subsidized rates compared to what other companies get it. From my own opinion. ...... I think politics is at work and playing at its finest! !!
If it was to be Dangote in this mess.......... the federal government would intervene by paving a successive platform for Dangote group to bounce back by ......... asking the bank ⛻ to culb their excess dollar rate to the actual rates the loan was collected

AK481:
Not twice the rate they borrowed,maybe thrice.

Buhari and his economic team caused it

How?

Ok bring out your calculator.

1.2bn$ borrowed at 150 naira to be payed back in 2years time=180bn naira to be paid back.

Let's say etisalat made an additional profit of 100bn naira that's 280bn naira right!.everybody rejoices.

Loan expires at the late 2016 dollar =504 naira,to pay back =603bn naira plus loan service charge say 630 billion to pay back.


What on earth can save them from not collapsing?

They made good profit for their business.

But it still wasn't enough.
If u look around and u want to be truthful,most company almost died or died because of Buhari.

Hepocrisy at its peak,

yea rite. But common sense should tell organisations accounts payable is better done in Naira since earnings are in Naira considering the exchange rate. They won't have to feel this burden this much.

donralph2000:
Wait o...... come to think of it........ Dangote has this kind of supercilious immunity and advantages when it comes to forex (I. e) He gets dollars at subsidized rates compared to what other companies get it. From my own opinion. ...... I think politics is at work and playing at its finest! !!
If it was to be Dangote in this mess.......... the federal government would intervene by paving a successive platform for Dangote group to bounce back by ......... asking the bank ⛻ to culb their excess dollar rate to the actual rates the loan was collected

Dangote's business is international. Some earnings are in dollars. He may not find it too hard to balance. He trades forex. Etisalat Nigeria does not really trade forex. You can't use etisalat recharge card in UAE. All earnings and purchases are in Naira, the loan ought to have been restructured before it got this bad.

majekdom2:
yea rite. But common sense should tell organisations accounts payable is better done in Naira since earnings are in Naira considering the exchange rate. They won't have to feel this burden this much.

They don't sell telecoms equipments in naira,you can't even buy it in Nigeria.
Collapse was sacrosanct not just to etisalat but to all companies that borrowed money.

See a lot of ICT company folded up or are still wangling and staggering today,my former company almost crashed.

One Monday management meeting my MD received a call and came back to joined us in the meeting looking sad.

The call was from FCMB,he said"I borrowed one million dollars and I can't even find where the money is,even though accountant said we made great gain from the loan"

Exchange rate risk is a major factor that must be considered when borrowing in a currency different from the currency of your account receivables.

AK481:

They don't sell telecoms equipments in naira,you can't even buy it in Nigeria.
Collapse was sacrosanct not just to etisalat but to all companies that borrowed money.

See a lot of ICT company folded up or are still wangling and staggering today,my former company almost crashed.

One Monday management meeting my MD received a call and came back to joined us in the meeting looking sad.

The call was from FCMB,he said"I borrowed one million dollars and I can't even find where the money is,even though accountant said we made great gain from the loan"

just like many oil and gas companies have the same problem. They had to make account payables in Naira.... It's was the best option. Some sent out notes to all contractors invoices should be sent in Naira. The oil companies are located bit lucky, they still sell their products in dollars but for telecoms one would expect a negotiation on what part of the loan can be serviced in Naira and some in dollars. They won't have to bear the burden alone. Thats my point. I won't be surprised if diesel supply invoice are in dollars. Why should that be if it is? Ofcourse, there ar things we don't know. The banks can't be silly to think if they take over, an investor will come knocking the next minute. I think there is more to it than the whole debt stories.

Nltaliban:
It's no longer news that Etisalat is backing out from Nigeria after CBN in collaboration with some banks took over the company. 

Am not a marketer or something, but I don't want to be sentimental. The truth is ETISALAT NIGERIA GOT LOAN FROM THE BANK WHEN EXCHANGE RATE WAS FAVORABLE, WHEN NIGERIA WAS TOGETHER. HOPING TO PAY BACK AT THE SAME RATE. but looking at how the exchange rate has skyrocketed, one would know that it's wouldn't be the same for Etisalat Nigeria the exchange rate is now twice of the amount it was when the acquired the loan. Meaning that the would be paying twice the amount they loaned INTEREST NOT INCLUDED this is cruelty at its peak. 

I think the federal government should just step into this before Nigeria looses all its potential investors. 

The exchange rate volatility which affected Etisalat is something that affects corporations generally operating in developing countries. Etisalat would've been aware of the possibility of this occuring, due to the antecedents of the Asian crisis (in the 1990s) which affected businesses/investors in Thailand and Indonesia that were unable to service dollar-denominated debt due to their economy being submerged in crises.

Furthermore, Etisalat's management, it can be argued, were pretty tardy/tepid in their response to the exchange rate issue as the option to reschedule/restructure debt repayments and entering into 'Futures' contracts which can protect the value of the dollar rate a company gets, were not taken for reasons best known to themselves. Consequently, they shoulder a major part of the blame.

With regards to investors running away, this issue is not as bad as it may seem and often is politicised or covered in a misleading way. Typically investment into Nigeria occurs in one of two ways:

-FDI (foreign direct investment): this occurs where foreign businesses come into countries like Nigeria and set up businesses, creating jobs and arguably contributing to the micro and macro economy. Examples include Jumia, shoprite, Nigerian Breweries (don't be deceived by the name) etc. The downside to this investment approach is that it is difficult to wind down operations if the economy tanks

-FPI (foreign portfolio investment): this is the preferred investment method of choice because it is easier to liquidate investments in the event that the economy goes bad. Examples include financial instruments like equities/stocks, bonds/fixed income (1yr dated etc.) and cash equivalents (also referred to as CCE and are typically treasury bills or similarly dated instruments issued by corporations)

Due to globalisation and the need for foreign investors to scour the globe for investment opportunities (think oyibo pension funds, life insurance etc.), capital will touch all 'corners' of the globe in order to receive a return. Trust me Nigeria is still an attractive investment destination, albeit contingently so.

CC. Zehner

No, it is a mata of Transformation cos they don't like Change.

That's a result of APC- CHANGE!! Na morning be this!!

I really appreciate the level of matured analysis thus far on the causes of there downfall.




Its quite a pity.

Well if it's wickedness at its peak, you aren't the one to decide. They requested the money on international ground which was later issued in dollars. Now they have no option then to pay back in dollars. It would have been better if the loans were requested in Naira denomination. At least they will pay same while strengthening our Naira. And more so they have way long in dialougue, probably things didn't work out