The Nigerian Communications Commission (NCC)
says that the operating licence issued to Etisalat
cannot be transferred without its approval.

Etisalat, Nigeria’s fourth largest mobile network, had
transferred control of the company to a consortium of
banks after failed debt repayment talks.

The banks, which include Access Bank, Zenith Bank
Plc, Guaranty Trust Bank Plc, FirstBank Limited,
Fidelity Bank Plc, First City Monument Bank (FCMB),
Stanbic IBTC, EcoBank, United Bank for Africa (UBA)
Plc and Union Bank of Nigeria Plc, among others, said
they would take over Etisalat’s operations through its
legal representative, United Capital Trustees.

A statement by Tony Ojobo, director, public affairs,
NCC, assured customers of the network that it would
do everything within its powers to ensure that they
continue to enjoy services provided by the operator.

“The attention of the commission has been drawn to
the planned takeover of Etisalat by a consortium of
banks.

“As a result of this planned action, the commission
wishes to state that it is aware of the indebtedness of
Etisalat to the consortium of banks.

“In conjunction with the Central Bank of Nigeria (CBN),
we mediated by holding several meetings with the
banks, Etisalat and other stakeholders with a view to
finding a resolution. Regrettably these meetings did
not yield the desired results.

“The NCC wishes to reassure the over 21 million
Etisalat subscribers that it will do all within its
regulatory power to ensure that Etisalat subscribers
continue to enjoy the services provided by the
operator.

“The commission has taken proactive steps to
cushion the impact of the takeover, this is without
prejudice to the ongoing effort between Etisalat and
the banks towards a negotiated settlement.

“In view of the recent development, NCC wishes to
reassure all stakeholders in the telecommunications
sector, and in particular the subscribers on the Etisalat
network that the commission will ensure that the
integrity of Etisalat Network is not compromised.

“Accordingly, the commission has drawn the attention
of the banks to provisions of the Nigerian
Communications Act (NCA) 2003 Section 38: Sub
section 1 – The grant of a licence shall be personal to
the licensee and the licence shall not be operated by,
assigned, sub licensed or transferred to another party
unless the prior written approval of the commission
has been granted;
“Sub section 2 – A licensee shall at all times comply
by the terms and conditions of the license and the
provision of this Act and its subsidiary legislation.”

Of the three core investors in Etisalat Nigeria –
Mubadala Development Company, UAE; Emirates
Telecommunications Group Company (Etisalat Group),
Abu Dhabi; and Emerging Markets
Telecommunications Services (EMTS), the local arm of
Etisalat Nigeria – only Mubadala has announced its
intention to pull out of the company.

Mubadala owns 40% of the equity in Etisalat Nigeria,
Emirates Telecoms Group owns 45% and EMTS holds
15%.

“Accordingly, the company received a default and
security Enforcement Notice on June 9, 2017
requesting EMTS Holding BV (EMTS BV) established in
the Netherlands, and through which Etisalat Group
holds its interest in the company) requiring EMTS BV
to transfer 100 per cent of its shares in the company to
the United Capital Trustees Limited, the Security
Trustee of the EMTS Lenders by 15 June 2017.

“Subsequently, the EMTS Lenders extended the
deadline for the share transfer to 5 p.m. Lagos time on
23 June 2017.”

In a statement on Tuesday, Etisalat Nigeria said it had
not decided on a trading name during the transition
period.

TheCable