Business News

JUST IN: Etisalat Pulls Out Of Nigeria After Failing To Resolve $1.2bn Debt

Google+ Pinterest LinkedIn Tumblr

JUST IN: Etisalat Pulls Out Of Nigeria After Failing To Resolve $1.2bn Debt

Embattled Telecommunications brand, Etisalat has put to an end its agreement with the Nigerian arm and given the business time to phase out the brand in Nigeria. The Chief Executive of Etisalat International made this known on Monday, July 10.

Nigerian regulatory bodies had intervened last week to save Etisalat Nigeria from the foreseen meltdown but talks with its lenders to renegotiate a $1.2 billion loan failed. All the efforts of the to resolve between Etisalat and the banks were to no avail.

It’d be recalled that Etisalat couldn’t renew its deals with signed ambassadors like Olamide and Genevieve which led to the former migrating to Glo.

Also, all UAE shareholders of Etisalat Nigeria have exited the company and have left the board and management, Hatem Dowidar said in an interview with Reuters.

He said discussions were ongoing with Etisalat Nigeria to provide technical support, adding that it can use the brand for another three-weeks before phasing it out.

The loan facility totalling $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. They subsequently reported Etisalat to the banking sector regulator, the Central Bank of Nigeria, CBN, and its communications sector counterpart, the NCC.