Nigerian Government Making Another Attempt to Shut-Down Nitel
Published on: 30th Jan 2014
Note -- this news article is more than a year old.
The Nigerian government is to make another attempt at shutting down its loss making landline operator, Nitel and its mobile subsidiary, Mtel after a court blocked its previous liquidation attempt a couple of weeks ago.
The government has been trying to liquidate the firm since early 2012.
Various attempts to privatise the company or turn around its fortunes have stalled, but despite that there is still political support for yet another attempt to rescue the ailing telecoms operator.
Local company, Transcorp bought a 75% stake in 2006 in Nitel for $750 million during an earlier privatization sale, but the government reclaimed the stake in 2009 following several years of neglect.
Since then there have been three aborted attempts to sell the company, with the last failing in June 2011 when the Omen International Consortium failed to pay a required USD105 million deposit on the sale.
The government is however seemingly determined to push ahead and put the company out of its misery once and for all.
At the last known report, the company was said to have debts of at least USD2.2 billion.