Banks set to take over Etisalat over N541.8bn debt

News Express |8th Mar 2017 | 3,035

A consortium of Nigerian banks, including Guaranty Trust Bank, Access Bank and Zenith Bank are set to take over the management of Etisalat Nigeria following the inability of the network provider to pay back a loan facility totaling N541.8 billion obtained in 2015.

The loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.

However, following the failure of the company to meet its debt servicing schedule agreed since 2016, the three Nigerian banks, reported Etisalat to banking sector regulator, the Central Bank of Nigeria, CBN, and its communications sector counterpart, the NCC.

The banks said their attempt to recover the loan by all means was fuelled by the pressure from the Asset Management Company of Nigeria, AMCON, demanding immediate cut down on the rate of their non-performing loans.

Etisalat has however blamed its inability to fulfil its obligation to the banks on the current economic recession in Nigeria.

Etisalat is Nigeria’s fourth largest telecoms operator, with about 21 million subscribers as at January 2017, according to the NCC.

It commenced business in Nigeria in 2009. (TV360 Nigeria)