Ecdysis Is The New Reality At Etisalat Nigeria

…Sector regulator may hold the ace on direction of changes

With heightened speculations over the divestment of Mubadala Development Company, UAE,  from Emerging Markets Telecommunications Services (EMTS) trading as Etisalat Nigeria, having been put to rest, following the confirmation of same, at the Abu Dhabi Stock Exchange,  June 20, 2017, change is coming to Etisalat Nigeria, and the change portends to be hugely disruptive. 

Etisalat Nigeria has been in a running battle with a consortium of commercial banks led by Access Bank Plc, over a $1.2 billion loan (about N541bn), which it has not been able to liquidate.

Information at the disposal of Africa Telecom & IT, shows that Etisalat Nigeria has confirmed changes in its shareholdings structure. Its Abu Dhabi parent company, Etisalat informed the Abu Dhabi stock exchange, late June, it was divesting fully from Nigeria.

Etisalat informed the exchange it had transferred all of its 45 per cent and 25 per cent in ordinary and preference shares respectively, to a security trustee, United Capital Trustee Limited, whose responsibility it will be to hold the shares on behalf of the lenders and other possible stakeholders in the company who lay claim to its assets.  United Capital Trustees is a subsidiary of United Capital Ltd Nigeria.

Change is coming to the company, not only in the direction of its shareholding structure.  It is a fait accompli a new trading name for the company is underway.

“Etisalat Nigeria can confirm discussions are on-going regarding other issues such as the trading name during this transition phase. Operations and services to our subscribers remain normal and will in no way be affected as we continue to deliver quality services to our subscribers. We will continue to tap into the rich, creative and innovative resources within our workforce to build a stronger business upon the stable foundation we have laid in our 9 years of operations,” said Vice President, Regulatory & Corporate Affairs at Etisalat Nigeria, Ibrahim Dikko.

Etisalat Nigeria has expressed gratitude to ICT stakeholders in the country, including both the Central Bank of Nigeria and sector regulator, the Nigerian Communications Commission, (NCC), “for their patriotic zeal and tireless efforts at ensuring collaborative and productive engagement. We are also appreciative of the tremendous support we have received from the media since inception and we count on their continued support as we transition to a stronger business. We will update our stakeholders and the public on further developments shortly.”

As matters stand, pointers are the NCC will decide the direction of the imminent ecdysis at Etisalat Nigeria, at least, from a regulatory point of view.  To the Commission, attempts by the consortium of banks, currently, remain only a plan.

The  Commission has reassured the over 21 million Etisalat subscribers that it will spare no effort, within its regulatory power, to ensure that they continue to enjoy the services provided by the operator.  Director of Public Affairs, at the NCC, Tony Ojobo, in a statement available to Africa Telecom & IT,  said the regulator intervened by holding several meetings with the banks, Etisalat and other stakeholders with a view to finding a solution, but regretted the efforts yielded no appreciable dividend.

The Commission added that it has taken proactive steps to cushion the impact of the takeover, noting the steps were without prejudice to the ongoing effort between Etisalat and the banks toward negotiated settlement.

“In view of the planned take-over of Etisalat by a consortium of Banks, NCC wishes to reassure all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised,” NCC said in the statement.

Importantly, the regulator has sensitized the banks to the provisions of the Nigerian Communications Act (NCA) 2003 Section 38, which states:
Sub section 1 – The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted; Subsection 2 – A licensee shall at all times comply with the terms and condition of the license and the provision of this act and its subsidiary legislation.

If the NCC succeeds in nailing the regulatory issues, regarding the imminent changes at Etisalat Nigeria, as it is poised to doing,  there are policy, legal and social issues, the planned take-over of the firm, will throw up.  How all this is resolved remains a function of the future.